MSN Money

7 signs of the next financial crisis

Five years ago, Lehman's collapse sent the market and economy into a panic. One of the insiders who saw it coming sees eerie similarities in the U.S. market and Asian banks, and a big drop ahead for stocks.

 of 9
 of 9
221Comments
Sep 10, 2013 10:10PM
avatar
There  is money out there  But so many of the fundamentals, faith, trust, integrity, honor, morality, faith in Govt have gone down the drain.The President spoke tonight, does anybody really give a Damn????At this point, I do not think so.
Sep 11, 2013 11:06AM
avatar
Wall Street moves up and down, making the rich (and insiders) richer, on substance-less transactions.
Ordinary people can make some $, if doing the same on a very limited and small scale.
However, what USA NEEDS is MANUFACTURING, an industry with substance, and jobs.

Sep 11, 2013 4:21AM
avatar

This is not to be dismissed.  I recently watched a documentary about cities in China that have been built but don't have any occupants!  They over built in a way that is completely unbelievable with no one to occupy the apartments and businesses that were built there are no less than 7 of these huge crumbling empty cities built in China.   They took over farmland and built condos that no one in the area can afford and at sometime the bill for all the work and materials for these empty cities come due China is going to have a very serious banking problem for financing these city builders who built cities without people to occupy them!  It is an absolutely insane situation and the bill for the work is due!  The big Chinese banks are going to crumble under the cost of these follies!  It is true look it up for your selves the truth is out there!

 

Sep 11, 2013 1:37AM
avatar

One thing I learned in the last several meltdowns is that the stock industry incluidng mutual funds, never tells you to remove money from the stock market.Look at the amount of buy versus sell recommendations. All in favor of buy all the time. What is also being gnored is the long term affect of inflation in the next 3 years that willl hit when Bernie Bernake leaves office and the whole mess is thrown onto the next president.

China is a risk but one important fact is ignored-- China has a major trade surplus so they are better equipped to withstand a banking crises since the government can put funds where they need to be.

   Unlike the USA which is a debtor nation and can only print money.

avatar

Why let the markets control your life?  The average Joe (which is me) is just trying to make it. 

 

One day the media says how wonderful everything is and the next day they are declaring the sky is falling.

 

It is what it is.  Quit trying to obtain that pie in the sky.

Sep 11, 2013 8:49AM
avatar

I've been 'beating on the drum' for my clients to reduce their debt, trim their margins to limit their exposure if markets get the jitters causing another correction. But not for most of the above reasons- because as we come up on October 1st, you're going to see vast & wild swings as markets try to get their barings with Obamacare & employment (or lack of). We had a very poor jobs report- not really a surprise for this time of the year, but I had hoped that we could start to reduce the treasuries 85 billion bond buying a little. Now, that may be put off a while, which has contributed to the recent gains the last few days- not to mention that the strike against Syria is being 'tabled' for the moment.

 

So keep working on reducing that debt, stay on your path of financial freedom & don't follow the crowd !

Sep 10, 2013 8:10PM
avatar
He's talking about a correction, not a crisis. You journalism folks please stop being so melodramatic.
Sep 11, 2013 9:52AM
avatar
The 'next' financial crisis???  That would imply we exited the 'former' crisis, which we most certainly have not. None of the instruments of financial alchemy, swindles, cheats, accounting fraud; none of the QE counterfeiting tricks have done one single thing to 'fix' any of the inherent problems of our monetized debt style of capitalism. So what we HAVE is one 'long emergency', as Jim Kunstler has said. (Read his book: The Long Emergency). There is not nor will there be any 'recovery' to anything even remotely approaching the 'growth' of the past. We are in for a permanent phase of pervasive compressive contraction. Finite wealth; finite resources; the 'growth' model cannot exist in this scenario. Unless of course, you happen to have another earth we can pilfer for resources as we did this one.
Sep 11, 2013 12:40PM
avatar
7 Signs?  How about #8----2 1/2 more years of Obama.  Worst president EVER.
Sep 10, 2013 8:24PM
avatar
You need to concentrate on where emphasis is. It isn't in the employment sector so it isn't creation of revenues or budget stabilization. We bailed banks in 2008 and gave "bank" designations to investment houses. One became a Dow component today-- it does no consumer banking, has no branches where the masses live and is generally an un-bank. Disclosed today-- 95% of the QE went to recover the 1% on top. So... where is the emphasis? On salvaging old Status Quo. Since the world turns and no one is immortal, we sacrificed the last 5 years futilely and irresponsibly because we have NO economy and not one bailed anything can sustain without the QE infusions giving it renewed vigor each month. The idiot who thinks a "correction" lies ahead is drunk on Kool Aid. Commonsense says if we want to live, we need to collapse the cardboard facsimile of economy and rebuild one from the ground up. You can try to guess where the funds to do it will come from, or just start writing checks now. The consumer will work, the wealthy jerk will pay and pay until well after they decay.
Sep 11, 2013 1:17PM
avatar

RECENTLY, SOMEONE ON TV COMMENTED ABOUT ONE OF OBAMA'S SPEECHES AS BEING PHONY. I CAN'T  THINK OF A MORE APPROPRIATE WORD TO DESCRIBE HIM, PERIOD, ALONG WITH THIS ECONOMY.

Sep 10, 2013 9:09PM
avatar
oh boy ,,2 days of gains an the sky falls again,,
Sep 11, 2013 1:02AM
avatar
yes but this time the major banks have trillions saved and sitting at the fed. its the main reason they haven't been lending.
Sep 11, 2013 3:16AM
avatar
Here we go again!!!  Only I think THIS time around will be worse, and maybe just maybe the government won't LIE so damn much about the economy. They might even consider starting to tell the truth to people for a change. I don't believe this [truth about the economy form the government], but one can always hope.
Sep 10, 2013 9:24PM
avatar
Think Obamacare and this will be the indicator of people pulling their money from Insurance Companies. If businesses will not hire because they are force to buy health insurance for the whole company and have to pay all their taxes too, I think investors need to worry. Taxes and Insurance will eat up any profits a company makes after taking out supplies and other overhead. If you are a business person, and your assets aren't what they use to be, then you are not going to get that big loan. Without the loan you can't afford to start your machinery and put people to work. Without the employment, you are not turning out products. Without production you have no income. So yes, investors are going to pull their money out and place it somewhere else that is working. This is a repeat of the 1928 stock market crash. Except the investors started taking their money out of big beer companies, wine and other distilleries. Then it was the companies that made the bottles for the liquor. All this was made possible of the great American Prohibition Act Amendment of 1918. And on top of this, you know that the Volstead Act was created in 1919 that put the IRS in charge of the Amendment. That didn't work well.  Why would the American people think that Obamacare will work? The American people deserve better. You big investors, tell the Senators to defund Obamacare and save this country.
Sep 11, 2013 2:46AM
avatar
Lehman was just the tip of the iceberg and/or just the weakest link.  Everyone else kind of skated and went back to business as unusual.  My pennies are out of the market and safe, unless the local bank fails.  Then FDIC takes over (I hope.)
Sep 10, 2013 9:02PM
avatar
We have already had 3 corrections !!!!!
Sep 10, 2013 10:36PM
avatar
Can you use the media to get more QE?  Good grief.
Sep 11, 2013 10:20AM
avatar
The Fed is buying 80 billion dollars of bonds a month with money they are printing. This is like stealing from your self!!!
Sep 10, 2013 9:11PM
avatar
Another DOOMER story.   Day isn't complete without 3 or 4 of these from the irrelevant media.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
267
267 rated 2
467
467 rated 3
605
605 rated 4
645
645 rated 5
691
691 rated 6
617
617 rated 7
459
459 rated 8
313
313 rated 9
130
130 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BXTHE BLACKSTONE GROUP L.P10
CELGCELGENE CORP10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.