Financial Crisis 2016
No matter how distant is the thunder; we should never underestimate the guile of the exchange fluctuations. Nowadays many people talk about the possibility of global financial crisis 2016, and there are objective preconditions for such opinions. Recently in an interview with German newspaper Handelsblatt Christine Lagarde, the head of the International monetary Fund, said that in 2016 the risks to the world economy are going to prospects of rising interest rates in the U.S. and a slowdown in the Chinese economy.
This assessment is confirmed by enchanting beginning of the year on world markets, when just in a few days Chinese indexes fell by 7% for several times. Headlines all around the world immediately explored with the assessments of records and comparisons. Should we be wary about what is happening in the US, China and Europe these days? It’s definitely worth it. The sense of crisis is in the air, even George Soros had to say that a new round of global financial crisis is in the making. According to him, this economic collapce can be triggered by the fact that at the moment China is trying to find a new model of economic growth and the devaluation of the yuan. Soros believes that the market situation today is similar to the one that prevailed in 2008.
Global Financial Crisis
Such assessments do cause anxiety; even to speak with confidence about the approach of another financial crisis 2016 is difficult. The experts, which were forecasting global financial crisis, talked about the global economic collapce a few years ago, when Europe faced an unprecedented challenge in the face of a pre-default state of Greece. However, Europe coped with it. Moreover, it came out of the situation with new tools that can theoretically protect its economy from the devastating impact of external factors – it is about the European stability Fund, which was created in 2012. The USA, where the bankers for the first time since 2008 decided to raise the interest rates on the Dollar, also feels more or less confident. The American economy is performing a good growth, and the unemployment rate is within 5%.
If China's economy drops, other Asian countries will also be under pressure. They will have a fear of losing competitive position. This will cause problems for Asian companies with dollar debts. But this scenario is really disturbing though. It really doesn’t matter whether there will be a new global financial crisis similar to what happened in 2008 or not.
The volatility of the Chinese economy is a very exciting event, but here we would not have to compare it with "dot-com" or the last mortgage bubbles. The Chinese have enough hardness and resources to calm the oscillations and to restore confidence to investors in the reliability of the Chinese market, because the stability of China is an important geopolitical factor, for which there are stable and enduring "Asian tigers".
Thus, harbingers of the crisis have no concrete arguments, although some of their statements do make us to be more cautious and to observe the unfolding processes carefully. No matter how distant is the thunder; we should never underestimate the guile of the exchange fluctuations.