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This compilation of financial-related insights includes videos from Tech Revolution, Joe Blogs, Sean Foo, Gregory Mannarino, and RJ Talks.
Tech Revolution brings news of the brutal reality of Europe’s economy. Joe Blogs says there’s a recession risk for 31 countries. Sean Foo talks about Saudi Arabia’s move that just broke the dollar. Gregory Mannarino provides a market report and says two perfect storms are rapidly converging. RJ Talks discusses new data from Bank of America sparking global contagion fear.
Tech Revolution
Aug 20, 2023
As the European Union stands at a critical moment, it faces a scary range of economic challenges. The strong foundations of the European Union’s economy are now showing signs of weakness. Several countries that use the euro as their currency are facing serious problems with high levels of debt.
The aftermath of the 2008 financial crisis laid the groundwork for a nightmare that unfolded in Greece in 2015, leading to one of the most massive financial rescues in history. The debt situation is not over yet. Italy, which is the third biggest economy in the group of countries that use the euro as their currency, is now on the edge of facing another economic crisis.
As we look more closely at the lasting effects of spending cuts and political choices, we see a troubling situation where the economy’s output per person (GDP per capita) has not grown for almost twenty years. It’s like watching a ship sink over time.
So, the European Union is facing a tough situation right now. Some of its strong economies are losing their strength, and their debts are skyrocketing. It all started with that big financial crisis in 2008, and then Greece had a major economic meltdown in 2015.
They had to accept some tough measures and got a huge bailout to save them. But guess what? The bailout didn’t help Greece that much, and now economists are worried about the long-term consequences of those tough measures on their economy.
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The situation is pretty bad, and one of the other big EU countries, Italy, is also in trouble. Their economy is almost stuck, and their banks are struggling with huge debts. This could even affect the entire Eurozone.
Some statistics are showing Italy’s GDP per person is stuck at the same level for 18 years. And their banks are in a tight spot too, having trouble getting the cash they need to support businesses. Loans to the private sector have gone down big time.
Let’s see how the European Union tackles this crisis and what it means for all of us. But to get to that, we also need to know the reason behind this. Let’s head to Italy. Their new government is causing a big crisis by trying to mess with the Italian central bank, Banca D’Italia.
They even want to take control of the bank’s gold reserves. The Italian government also wanted to increase its budget deficit, but the EU did not allow it. This caused some major conflicts between them. And because they all use the same currency, they can’t just devalue it like they used to with their old money, the lira.
Back in the day, Italy’s stocks were doing even better than Germany’s. But going back to the lira now would be a disaster. It would mess up the whole European economy and hurt investors everywhere. The situation is shaking up the eurozone, and it’s not just Italy. Other countries like Portugal and Spain are also facing big debt issues. It’s like a chain reaction.
The EU leaders are trying to get Italy to play nice, but it’s turning into a big showdown. And let me tell you, this Italian crisis is just the beginning. More problems are lurking in the shadows. Some other European countries have weak economies too, like Spain and France.
The European Central Bank said they’ll do whatever it takes to save the euro, but time will tell how much it’ll cost them to fix this mess. Speaking of banks, more and more banks are doing their moves.
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Europe’s big banks, like Deutsche Bank and Lloyds, are facing a risk of bad loans because the global economy is struggling with slow growth and high inflation. Everyone’s watching closely to see how banks handle this shaky economic situation.
There are some interesting trends in the banking world. Investment banks are feeling pressure due to a lack of deals, but higher interest rates are helping retail banking be more profitable. Lloyds, for example, had to take a bigger charge for troubled loans and missed profit expectations.
On the other hand, UniCredit did better than expected in the second quarter, thanks to those higher interest rates. But it’s not all smooth sailing. The International Monetary Fund sees some challenges ahead, with inflation coming down, but risks are still hanging around.
The demand for loans in the eurozone has dropped to a record low, and banks are being careful about lending money. Germany’s financial regulator is telling banks to set aside more money for bad loans. Deutsche Bank, for instance, had to double its provisions for bad loans in the second quarter.
Meanwhile, Santander is seeing some trouble in Brazil, affecting their net profit. Tough times for them.
Joe Blogs
Aug 20, 2023
The Netherlands has become the latest economy to enter RECESSION, joining Germany, Saudi Arabia, New Zealand and Taiwan. A further 24 nations including Italy are rapidly heading towards an official Recession as the Global Economy slows and the impact of CHINA’s problems spreads around the world. In this video I look at which countries are currently in recession, the list that have the potential to enter recession and discuss what is likely to happen over the next 3 to 6 months.
https://www.youtube.com/watch?v=2235V3405pY
Sean Foo
Aug 20, 2023
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Saudi Arabia has dumped their holdings of US treasuries to a 6-year low. Even as a global recession nears, Saudi Arabia is diversifying away from dollar assets into risky investments like stocks. This underscores a big economic and geopolitical shift away from Washington and the world reserve currency. Here’s what you must know and why the dollar system is in trouble.
Gregory Mannarino
Aug 20, 2023
MARKETS A LOOK AHEAD: Two PERFECT STORMS Are Rapidly Converging. Mannarino
RJ Talks
Aug 20, 2023
A new warning was just issued by Bank of America, saying a real global credit event is now a possibility. With the stock market already feeling the pain after crashing over the past few weeks. The S&P 500 is now down 5 percent during this month, and according to this bank’s warning it’s not done falling. How much further will #stocks fall? Make sure to watch the video to find out.
The credit event that’s bubbling to the surface right now, is due to the massive amount of risky debt borrowed over the last few years, at very low interest rates. This problem isn’t about to break in the US economy though, instead another major economy could be about to crash. China is facing a massive real estate debt bubble, with real estate investors and homebuyers losing their investments. With their major real estate index fund now falling over 80 percent during 2023.
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