The Never Ending Recession

Photo by Morning Brew on Unsplash

Since 2008 the global economy has been in a continuous recovery, endless bail outs and liquidations from some of the biggest companies worldwide.

The Crunch

It all started with the “Housing” market, prices had started to slump and move downwards a couple of years before the actual recession.

At the start, we all thought this was a great thing! We thought finally we would see house prices head towards a more realistic, affordable price for those looking to enter the market.

Unfortunately this was not the case, what this really meant was disaster loomed and we were too caught up in our bubble to see it.

Banks had for too long lent out 100% of the mortgage value along with providing credit to those who were not exactly good for the money so combining these two things alone spells disaster.

Now this was not the only thing adding to the global financial pressure, those same banks had been given free passes without oversight to manage and be trusted to be moral with their customers finances.

What A Mess

Outside of being unregulated and having no government oversight, these banks were allowed to use customer funds to invest which as we lived through went horribly wrong.

Eventually once the housing market had been shattered and the Stock market on its knees, governments like USA, UK stepped in taking control and bailing out big banks along with some other big financial companies.

The interesting thing is that in the UK not all banks had a bail out from the taxpayer. Barclays actually borrowed £7 billion from the middle eastern elite so not all bailouts cost the tax payer more than likely the customer though.

According to an article from HuffPost 2008 cost the USA over $22 Trillion which shadows anything in history however this leaves some questions to be asked.

  1. Fiat Currency Worthless?
  2. Did The Recession End?
Great Depression — Great Recession Comparison From Worthwhile Canada Initiative

Think about this,

1920's The Great Depression:

In 1929 the stock market lost billions however rural areas where still suffering from the war and farming families where struggling, most without electricity and any real education.

City workers wages were going up, starting to move into the modern world then things started to crash, factories, shops closing and families without food, money, employment non existent.

This crisis brought the US to its knees as countries like the UK were already struggling years before with many out in the cold, Hungary trying to rebuilt from a devastating war in Europe.

2008 The Great Recession:

Banks chasing derivatives with customer funds, providing loans to people with history of low credit, unemployment at record time highs and millions relying on state welfare to get by.

Costing the US around 22 trillion dollars along with the UK and their own £500 billion stimulus package in attempt to save what was left.

2020 Game Over?

Through 2018 and 2019, the stock market at certain times was dropping down to levels it had not seen since 2008, clearly showing that the world had not fully recovered.

From decade long wars with endless budgets, continuous QE, corporate bailouts and then Covid19 began. Since lockdown the UK economy has shrunk by at least 20% with over 15M people either unemployed or currently being paid by the government to stay at home.

It has been reported that Covid19 could cost the worlds economy around $8.8 trillion and we are far from out of this yet, potentially facing another lockdown with more economical downturn leading to more stimulus packages could serious damage the worlds economy to the point we may actually for the first time ever see a complete halt to our financial services.

Photo by Nick Chong on Unsplash

The Answer?

Well I would be lying if I said there was an easy one however there are some options that people can take to help them minimise the damage done to their livelyhoods or life savings.

Funny enough not long after 2008 hit home hard for most of us, this anonymous person or collective created a piece of code which would revolutionise the way the everyday person invested their money.

The first “Blockchain” was launched with “Bitcoin”, now for a good 4 or 5 years Bitcoin had so much bad press, horrible user interface, complex ways to mine or buy it.

However, we eventually saw projects like “Ethereum” launch which gave birth to this whole new space leading to where we are currently.

Cryptocurrency, The Saviour?

No doubt you think i am a drug dealer by now… Hate to disappoint you but I am not, this is a poor misconception because blockchain technology provides your right to privacy with some security.

Now it is almost impossible to find out who owns what wallet, most do have public addresses which can be found on “Block Explorers” so you can track transactions.

Cryptocurrency which uses Blockchain technology could solve government and corporate corruption while eliminating the current debt system plus allowing for the masses to have access to a fairer, more realistic law making process which could not be tampered with.

https://www.coingecko.com/en/global_charts

Year on year, the Cryptocurrency space grows by the billions!

Currently the total marketcap is just shy of $300B, this industry could easily be well over the trillion total marketcap within the next 5 or 10 years depending on mass adoption.

After the all time high in Crypto back in early 2018, we saw many projects bottom out and some never recover however since that time we now have projects who are delivering real world use cases.

Blockchain technology and you can quote me on this has been implemented in at least 70% of the worlds industries now we just need the currency side to catch up.

You can see some of the industries who are heavily investing in this technology.

  1. Finance
  2. Logistics
  3. Entertainment/Gaming
  4. Retail
  5. Medical
  6. Automotive/Aviation
  7. Collectables
  8. Real Estate

Only eleven years after Bitcoins inception, we see some of the biggest, most wealthiest corporations in the world using Cryptocurrency from gaming companies like “Ubisoft” “Microsoft”, big banks like “JP Morgan” plus lets not forget countless central banks around the globe.

Could this be the answer to the globalist problems we face? Could this technology allow for a new, fairer world be created for future generations to come? Is this the tool we need to make the right change?

I definitely think it can contribute towards that change.

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Love to write about games, tech and investing.

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TheBizz

TheBizz

Love to write about games, tech and investing.

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