To worry there is about to be a second 2008 financial crisis

[Warisocker]

Just to warn everyone, bellow is going to be quite a depressing read and this is just my opinion, I hope this will not happen.

The economy generally is absolutely shite compared to what it was the when I was a child and certainly compared to when my boomer parents were coming of age. By every metric out DC will have a worse quality of life on average than us. The benefit of increased life expectancy will most likely begin to reverse over the next decade or so and technological advancements have not been a silver bullet they were sold as, social media has wrecked out DCs mental health and will likely eliminate many potential jobs (chat GPT anyone?)

More recently, the war in Ukraine, the tension in terms of sanctions and the cost of living crisis is creating severe difficulties. For poorer people, a bad situation is being made much much worse. If it was once hard to make ends meet it’s now becoming almost impossible. For middle Britain, living standards are being (possibly irreversibly) decimated. Specifically for our DC moving away for university, getting a car at 17, being able to move out into a flat share with your friends, being able to buy a house in your 20s. These things will continue to go on for some, and good luck to those who can, but for the majority it’s going to become a thing of the past. And I think that’s a crying shame.

Specifically, about the title of my thread, Silicon Valley bank has collapsed. This was how the 2008 financial crisis started - a major bank collapsing. Aibu to worry that, in addition to the current dire situation, we may be headed for another financial crisis.

I have a feeling things are going to get much, much worse... I'm really quite scared to be honest

I hope it won't happen too. I graduated in 2008 and find everything that's happening right now very unnerving.

ALL the American banks are in trouble - I skim read something that said they dropped 75% of value before bouncing

It's very very concerning

The global economy is in trouble. Make no bones about that. However it is different to 2008 which was triggered by quite a specific set of circumstances. We’re already in the midst of the current economic mess, I don’t think things are going to get worse but nor do I see them getting better yet either.

Things are concerning but I worry some vulnerable people could read your post and spiral.

Life, including everything financial, is about ups and downs and whilst things feel worrying right now, there are lots of reasons to be positive too. Personally, I do feel worried but I think humans are such survivors. If things are about to get harder then there will be positives beyond that time too. There are lots of reasons to have hope. It's important to get outside and plant some seeds if you're struggling you have access to a garden - there's little more therapeutic than watching a plant grow if the world feels like it's burning. I always turn to nature when I'm pannicking - there are always going to be crises but most of them pass.

I’m not sure as the 1970s and early 80s were not times of plenty. Late 80s it changed completely.

HSBC bought it for a quid didn’t they?

If your parents are boomers they would have come of age in the 70s. Rampant inflation, high interest rates, high unemployment. UK bailed out by the IMF. It was shite. Since the 2008 crash rules for banks have tightened so hopefully are more robust against problems.

They paid that for the UK division of the bank @Marmite27.

It is very concerning but over here we seem more concerned with Gary Lineker, there was hardly any mention of this yesterday in the news

YANBU OP. The banking sector is experiencing issues. China has already had serious problems.

I can assure you that major regulated British banks have enough liquidity to manage this OP.

They have to have enough due to rules put into place after 2008.

Yes I think we're heading for another big banking collapse.

FFS 😔

I was in my first proper role when the last one happened. I was at an architecture practice. I was put onto a 4-day week for 6 months, all projects were cancelled, and they made wave after wave of redundancies.

The thing is - this time around we have a national staffing shortage in every single sector - so it's not clear how it will play out in terms of lay offs.

Financial crises happen / adverse things happen about every decade so YABU....

Life is a series of ups and downs, and it never stops - I think we have had some financial crisis in every decade I have been alive (early 70's, 1992, 1998, 2000 (9/11), 2008)

The current one is from a combination of the fall out from covid /brexit and the Ukraine war, stated in 2020 and is still continuing.

It too will pass.

There was nothing unsurprising about the market activity of SVB; it's been foreseeable for best part of a year.

The concerning (but equally unsurprising) thing is the huge amount of MSM coverage about it inevitably ramping up panic in those who know no better.

Agreed (I work in the financial services sector). I think there will be a rise in retail and commercial bad debts with the hike in interest rates but not enough to threaten the whole banking system.

The panic-inducing posts really don't help.

The banks are much more tightly regulated than in 2008 so I very much doubt we will see a widespread collapse. There's no doubt that there are lots of problems with the economy at the moment though.

Totally agree. 1980/81 was horrendous.

I think we need to know if the bigger banks also have their money in government bonds before taking a position.

It's true that regulation is much, much tighter now and the consequences of the SV bank collapse are contained - there's no reason to expect a domino effect. Just spookiness which happens so easily.

But lots of money in government bonds, rising interest rates and a run on the banks with a larger bank... That wouldn't be good.

The global economy is in trouble anyway as there is too much being pulled out by the richest living extreme last bed of luxury and not enough redundancy in the system, aka local sustainability. Ecologies have been buggered and too many have to be told that human societies and economies cannot survive outside of ecology. A financial issue doesn’t concern me more beyond wondering if the public are going to be hoodwinked into more austerity to make bankers rich.

It’s overdue, and nothing has been resolved since 2008. It’s worrying. They’ll probably keep kicking the can down the road though (the governments and props) and it won’t all collapse this time. Who knows. We’ll see.

@llLincslady53
Firstly no need to use the term 'Boomers'.

Secondly, although I agree with the sentiment of your post, the youngest Boomers were born in 1964 (bizarre classification in my view). This means the youngest 'Boomers' would not come of age until 1982.

One more collapsed on same day and another over weekend too. I think it might be a domino over there for smaller banks.
from what I’ve seen on financial press though lots of it was caused by the very companies that the us government are bailing out as there were messages going around that it was going to collapse so clients withdrew their money. Which made it collapse.

1 bank has collapsed in America and 30 banks have had their trading suspended on the stock exchange.

shits hitting the fan in America.