You don’t have to look too hard to see some ominous portents for the global economy. From Michael Snyder at theeconomiccollapseblog.com:
There have not been so many trouble signs for the global economy in a very long time. Analysts are sounding the alarm about junk bond defaults, the smart money is getting out of stocks at an astounding rate, mortgage rates are absolutely skyrocketing, and Europe is already facing a full blown financial meltdown. Of course expectations that another global economic crisis will happen among the general population are probably at an all-time low right now, but the reality of the matter is that we are probably closer to a new one erupting than at any point since the last one in 2008. Since the last financial crisis our long-term debt problems have just continued to grow, and there are many that believe that the next crisis will actually be far worse than what we experienced ten years ago.
So how bad are things at this moment?
The following are 12 indications that the next major global economic crisis could be just around the corner…
#1 The “smart money” is getting out of stocks at a rate that we haven’t seen since just before the financial crisis of 2008.
#2 Moody’s is warning that a “particularly large wave” of junk bond defaults is coming. And as I have written about so many times before, junk bonds are often an early warning indicator for a major financial crisis.
#3 According to the FDIC, a closely watched category known as “assets of problem banks” more than tripled during the first quarter of 2018. What that means is that some really big banks are now officially in “problem” territory.
#4 U.S. Treasury bonds are having the worst start to a year since the Great Depression.
#5 Mortgage interest rates just hit a 7 year high, and they have been rising at the fastest pace in nearly 50 years. This is going to be absolutely crippling for the real estate and housing industries.
#6 Retail industry debt defaults have hit a record high in 2018.