Vilja Ruotsala
Sep 4 · Last update 2 mo. ago.
Will there be another economic crisis, if so when?
The last economic crisis happened in 2008 because banks gave too many mortgages to people with low credit, and the people couldn’t pay back to the banks. Nowdays there are lots of advertisements for quick loans which are expensive in the long run. Do you think this will be the root cause of a new crisis?
Stats of Viewpoints
Unless efficient resource management is mastered economic crises will become increasingly common
1 agrees
0 disagrees
An economic crisis is debatable, an economic recession is overdue
1 agrees
0 disagrees
Yes, a lack of banking reforms makes another economic crisis likely
0 agrees
0 disagrees
Donald Trump deregulation policies are making another economic crisis more likely
1 agrees
0 disagrees
Viewpoints
Add New Viewpoint
Unless efficient resource management is mastered economic crises will become increasingly common

The whole world market system will inevitably undergo cyclical economic crises based on a world of finite resources. In the current climate a complex combination of events recently involving corrupt trading practices have led to economic crises, but causes are varied with even diplomatic or violent confrontations often leading to economic turmoil. But in the future, with looming anthropogenic climate change proving increasingly responsible for climate disaster, economic crises will have many additional causes. In addition, considering that environmental disaster and conflict around diminishing resources can easily lead to corruption and violent confrontations, these new causes will likely feedback to make economic crises even more prevalent.

The economic picture painted by climate scientists is however a complex one, with some areas expected to profit from changes in climate while others become uninhabitable. However large economic and energy restructuring schemes, such as Germany’s comprehensive “Energiewende” policy, are set to revolutionise the country and put Germany at the cutting edge of efficient resource management technologies, making countries like Germany more “crisis-proof” moving forward. Renewable energy, economical water and resource management are the only things that will save us from future reoccurring economic disasters. fortune.com/2017/03/14/germany-renewable-clean-energy-solar npr.org/sections/thetwo-way/2017/06/29/534896130/mapping-the-potential-economic-effects-of-climate-change nature.com/articles/s41558-018-0257-z

Agree
Disagree
Latest conversation
Daniel Halliday
Apr 6
Approved
DH edited this paragraph
The whole world market system will inevitably undergo cyclical economic crises based on a world of finite resources. In the current climate a complex combination of events recently involving corrupt trading practices have led to economic crises, but causes are varied with even diplomatic or violent confrontations often leading to economic turmoil. But in the future, with looming anthropogenic climate change proving increasingly responsible for climate disaster, economic crises will have many additional causes. In addition, considering that environmental disaster and conflict around diminishing resources can easily lead to corruption and violent confrontations, these new causes will likely feedback to make economic crises even more prevalent.
An economic crisis is debatable, an economic recession is overdue

Cycles of market growth and slumps are the normal nature of economic markets and a recession is a normal event over time, the 2008 global financial recession was a special case due to new lending practices that bypasses the ordinary mechanisms for regulating mortgages. Recessions of some kind usually occur every eight to ten years. Will there be a recession again? Yes, that is to be expected. Will there be a global economic crisis again? That depends on the bank's lending policies and having mechanisms in place to discourage unrealistic lending practices.

The current financial situation of many countries globally has caused analysts to warn of the possibility of an impending global recession. In 2019 the US Federal Reserve announced it would not raise interest rates, China’s economy has been slowing dramatically since 2018 and German and Italian markets have recently shown zero and negative growth respectively. As this economic shift is expected to go on for some time, the possibility of this period of slow growth becoming the next recession remains considerable, but whether this becomes a full blown economic crisis can only be described retrospectively. www3.nhk.or.jp/nhkworld/nhknewsline/backstories/ecbsshifting forbes.com/sites/simonmoore/2019/03/23/the-yield-curve-just-inverted-putting-the-chance-of-a-recession-at-30/#6259921013ab nytimes.com/2019/01/20/business/china-economy-gdp-fourth-quarter.html

Agree
Disagree
Latest conversation
Daniel Halliday
Apr 6
Approved
DH edited this paragraph
Cycles of market growth and slumps are the normal nature of economic markets and a recession is a normal event over time, the 2008 global financial recession was a special case due to new lending practices that bypasses the ordinary mechanisms for regulating mortgages. Recessions of some kind usually occur every eight to ten years. Will there be a recession again? Yes, that is to be expected. Will there be a global economic crisis again? That depends on the bank's lending policies and having mechanisms in place to discourage unrealistic lending practices.
Yes, a lack of banking reforms makes another economic crisis likely

Following the 2008 world financial crisis the US Federal Reserve and many other national banks introduced quantitative easing methods that effectively further inflated the housing market bubble without properly addressing the corrupt banking practices that led to the crash. This has just allowed this housing bubble to get bigger as the reforms to lending practices remain slow. If the rate at which the financial processes that caused the last recession are reformed remains slow, while economic inflation continues, there will be another economic crisis that some economists feel will be worse than the last.

Economists such as Peter Schiff, one of the few economists to predict the 2008 financial crisis, have warned that the overvaluation of housing prices compared to income in the US is following a similar pattern to the pre-2008 housing market. Schiff has also pointed out the possibility of a generational shift that may further accentuate this dynamic of over-inflation of the housing market, stating that “according to one study, millennials earn approximately $10,000 less than members of Generation X and will likely make around $100,000 less over the course of their careers. On top of that, they are saddled with over $1 trillion in student loan debt” [1]. With the cause for the last financial crisis, the housing crisis, not being resolved, the bubble has just been inflated further, however with the next generation of homeowners being worse off financially the next housing crisis will be worse, making the likelihood of a similar economic crisis worse also. [1] schiffgold.com/key-gold-news/housing-bubble-2-0 youtube.com/watch?v=XCY10ZaONkU

Agree
Disagree
Latest conversation
Daniel Halliday
Apr 6
Approved
DH edited this paragraph
Following the 2008 world financial crisis the US Federal Reserve and many other national banks introduced quantitative easing methods that effectively further inflated the housing market bubble without properly addressing the corrupt banking practices that led to the crash. This has just allowed this housing bubble to get bigger as the reforms to lending practices remain slow. If the rate at which the financial processes that caused the last recession are reformed remains slow, while economic inflation continues, there will be another economic crisis that some economists feel will be worse than the last.
Donald Trump deregulation policies are making another economic crisis more likely

The 2008 financial crisis that lead to the Great Recession was caused by the deregulation of banks that arguably originally stems from the 1980’s with similar Economic policies of leaders such as Ronald Reagan and Margaret Thatcher. Following the recession the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010 to regulate the US financial services industry. However a law proposed by the Trump Administration has been passed in 2018 reducing financial regulation and effectively undoing many of the provisions passed under the Dodd-Frank Act.

The Dodd-Frank Act created the Consumer Financial Protection Bureau, an agency tasked with consumer protection and enforcing regulations that led to approximately $12 billion dollars being returned to consumers by cracking down on predatory and deceptive lending practices. However Trumps appointment of a CFPB Director who doesn’t even believe the agency should exist prompted a rolling back of investigations and enforcement. This has basically undermined the value of the main regulatory response to the last financial crisis, effectively allowing the same practices that led to the last financial crisis to become common place once again, maximising the chances of a repeat of history. nbcnews.com/think/opinion/trump-s-learned-nothing-financial-crisis-his-deregulation-spree-could-ncna906971

Agree
Disagree
Latest conversation
Daniel Halliday
Apr 4
Approved
DH edited this paragraph
The Dodd-Frank Act created the Consumer Financial Protection Bureau, an agency tasked with consumer protection and enforcing regulations that led to approximately $12 billion dollars being returned to consumers by cracking down on predatory and deceptive lending practices. However Trumps appointment of a CFPB Director who doesn’t even believe the agency should exist prompted a rolling back of investigations and enforcement. This has basically undermined the value of the main regulatory response to the last financial crisis, effectively allowing the same practices that led to the last financial crisis to become common place once again, maximising the chances of a repeat of history. https://www.nbcnews.com/think/opinion/trump-s-learned-nothing-financial-crisis-his-deregulation-spree-could-ncna906971
Translate