Investors should prepare for a U.S. stock market crash, bank failures, and mounting bad debts.

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We Are at the Point of Another Global Financial Crises: Rickards

China is facing a severe crisis with its wasted investment, leading to a debt trap and a lack of transition to consumption-driven growth. New challenges, including financial panic and corporate failures, could trigger a global financial contagion. The collapse of shadow bank Zhongrong International Trust is one example, and regulators are struggling to respond. China’s stock markets may plummet, leading to a potential collapse that will affect global markets, including the United States. Investors should prepare for a U.S. stock market crash, bank failures, and mounting bad debts.

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Kyle Bass Predicts Banks Could Lose Quarter Trillion Dollars in Office Market Collapse

The financial market’s March panic over regional banks’ exposure to the struggling commercial real estate and office sectors is now forgotten, but the underlying fundamentals have worsened. Kyle Bass predicts the US banking industry will lose hundreds of billions of dollars due to office market exposure. He expects a 10% hit to US banking equity. Morgan Stanley also foresees significant declines in commercial real estate prices, especially for office space, expecting a 27.4% drop from peak to trough in 18-24 months.

Economist Warns: Crashing Office Market Deepens ‘Doom Loop’ for U.S. Cities

The declining demand for office space is pushing major US cities towards an economic crisis, warns Columbia professor Stijn Van Nieuwerburgh. Cities like Atlanta and Chicago face historic vacancy rates. This decline threatens states’ revenues from reduced property taxes. Consequently, tax rates may spike, and office property values could plummet by 35%. Additionally, banks with significant exposure to the $600 billion office building debt are in jeopardy.