If you listen real
carefully, you can hear rumblings from concerned market watchers and
investors. This is reminiscent of the
years leading up to the 2008 housing bubble implosion. Here is a warning from one investment banker
as reported by the Telegraph:
Ian Spreadbury, who invests more than
£4bn of investors’ money across a handful of bond funds for Fidelity, including
the flagship Moneybuilder Income fund, is concerned that a “systemic event”
could rock markets, possibly similar in magnitude to the financial crisis of
2008, which began in Britain with a run on Northern Rock.
“Systemic risk is in the system and as
an investor you have to be aware of that,” he told Telegraph Money.
The best strategy to deal with this, he
said, was for investors to spread their money widely into different assets,
including gold and silver, as well as cash in savings accounts. But he went
further, suggesting it was wise to hold some “physical cash”, an unusual
suggestion from a mainstream fund manager.
His concern is that global debt –
particularly mortgage debt – has been pumped up to record levels, made possible
by exceptionally low interest rates that could soon end, and he is unsure how
well banks could cope with the shocks that may await.
The housing market crisis is not over. The bailout of banks and their
accomplices was just a band-aide. The
next crisis will make 2008 look like a tremor.
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