Will there be a functioning stock market? – 2.0
I’d asked this question a few years ago in 2011, at:
I’d like to ask the question again.
Partially because the website seems to have changed
since then, moving from Discussions, to Groups.
Any thoughts, given the things we are currently seeing.
Such as negative interest rates, the central banks looking at “other assets”, etc.
Thanks a lot!
I’ve been reading many disturbing things about the economy lately.
Some subjects are; the huge US debt, the price of gold and silver, the expanding money supply, huge amounts of credit default swaps.
I’ve also seen Michael Ruppert’s, Collapse
And read Robert Kiyosaki’s Conspiracy Of The Rich.
In the past, we have seen big surprises such as:
Swift and major changes to the monetary system, such as taking the US dollar off the gold standard in 1971.
Long Term Capital Management (LTCM) collapse.
The collapse of Bear Stearns and Lehman Brothers in 2008.
Crisis in Iceland and Greece.
Bankruptcies of many banks, being taken over by the FDIC, are happening frequently these days.
Downgrading of US debt from AAA to AA.
Intuitively, I can’t help thinking that some big crisis in the stock markets will be like runs on the banks, similar to what happened in the 1930s.
Then, banks only had 10% or less of the total amount of deposits, on hand.
Possibilities to trigger a big crisis could be:
Major interest or principal payments suddenly becoming due.
Reset clauses in credit default swaps become due.
Gold or silver ETFs looking for delivery of actual gold or silver.
Another war somewhere.
Another natural disaster.
Paper on top of paper.
More paper liabilities outstanding, than there are underlying assets.
Cash flow suddenly stops, and you can’t get your money out of the bank.
Or buy or sell your financial instruments, such as stocks, bonds, ETFs.
I just can’t help wondering, if there is another big crisis, will there even be a functioning stock or bond market?
Any examples from history that we could draw on?
Thanks a lot!