Next Banking Crisis Is Already Here – Opportunity

When the next great financial crisis strikes, millions will be blindsided by what is coming and will be shocked by a “New Great Depression of The 21st Century”. This does not have to happen to you. It is empowering to know what is coming and to understand why it is coming.  It is important to get prepared in advance for turbulent times. It is also imperative to have a plan for the years ahead. I will do my best to prepare you in advance for any eventuality.

This global financial drama is also part of the “incubation” effect of as part of the 2008-2015 time frame. There is a much larger financial crisis on the horizon. Decisions were made that seemed to resolve that crisis, but in actuality, probably only delayed it. The world is not in less debt due to the decisions of central bankers during that 7-year period. To the contrary, the nations of the world are in more debt and require a rise in inflation to help bring them out of this crisis. But will they be able to ignite the forces of inflation?The answer so far has been NO!

Considering the market condition, this could come at any time but, until it does, more patience is required. While the 7-year cycle is the principal force that is causing the market to build a top in this time frame, negative events are usually associated with large cyclical tops. One of these, which would be reported as a news item, will probably become the trigger which will activate selling. Could such an event be about Deutsche Bank, the new Lehman Brother’s crisis of 2016?

Deutsche Shares Compared to Cocos

There has been another new “financial toy” invented that rival’s derivatives.They are called “Contingent Convertible Bonds”, better known as ‘CoCos’.They were invented to help banks shore up their capital bases.They are bonds that are sold to investors as debt, but with a twist; if the bank gets into financial hot water, they can cancel interest payments, convert the bonds into equity or even write off the debts altogether. This could avoid problems associated with regular bonds leading to lawsuits and bailouts and maybe even a catastrophic collapse. With these banks holding all the cards I can inform you that CoCos investors will take it on the chin in this next financial meltdown before the bank becomes unviable.