Some people belive in that we are in crisis right now, some not or do we already get over the crisis. There is so many warning and point about this topic so let's start.
Signs are upcoming crisis?
There is some signs that we experienced from past crisises that helps us to identify to what is comings.
Reduced bank capital represents the value of a bank's equity instruments that can absorb losses and have the lowest priority in payments if the bank liquidates.
Soaring private debt represents loans that are typically made by non-bank investors. Companies typically access private debt to finance growth, expand their working capital, or fund real estate development.
Global debt rate expanding represents the world wide Liabilities held by sovereign nations and states/provinces therein.
Rising interest rate represents the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Bank capital assets ratio(%) start declining after 2019 and keep decreasing year after years.
World wide private debt start to increase after 2011 and still keep it up its trend, private debt almost increase %55 percent from 2011 to 2021.
United States Federal Reserve Bank (FED) key interest is keep rising after 2020. The global economy runs on money, so when the cost of money in the form of interest rates rises rapidly, growth may slow sharply or even give way to a recession.
Conclusion
Whether are we in crisis or not can be dependence that the interpretation of the reader and there is too many factor affect on this subject itself so we share the key datas that can help you to identify the upcoming crisis. Let we know your idea about the crisis is coming or not in the comment.