The global market stands on the brink of the largest economic crisis in history
Hal Turner
World Known Financial Guru Yakov Goldovsky: The global market stands on the brink of the largest economic crisis in history.
At present, U.S. stock prices have reached an absolute historical record based on average indicators, surpassing even the levels of the most famous bubbles—the Great Depression of 1929, the pre-crisis peak of 1965, and the dot-com crash of 1999. Currently, market overvaluation is even higher than at any of these points: in essence, the S&P is valued more expensively than anything the world has seen in the last 100 years.
Our financial sources here in the New York City area note: such a gap between the fundamental value of assets and their actual price on the exchange is a direct threat to global financial stability.
The moment investors lose confidence or trigger a mass correction, an avalanche-like decline and crash will begin, affecting not only the U.S. stock market but also all economies dependent on it. Associated debt and banking crises could lead to large-scale corporate bankruptcies, a real estate collapse, and currency devaluation.
The uniqueness of the current situation lies in the fact that no significant bubble of the past has been supported by such massive monetary stimulus and such a prolonged period without correction.
Against the backdrop of inflated expectations and the global economy’s dependence on American markets, a potential crash threatens exceptional consequences in terms of severity and duration for the entire global system.