Since 2008 the global economy has been in a continuous recovery, endless bailouts and liquidations from some of the biggest companies worldwide.
The Crunch
It all started with the “Housing” market, prices had started to slump and move downwards a couple of years before the actual recession.
At the start, we all thought this was a great thing! We thought finally we would see house prices head towards a more realistic, affordable price for those looking to enter the market.
Unfortunately, this was not the case, what this really meant was disaster loomed and we were too caught up in our bubble to see it.
Banks had for too long lent out 100% of the mortgage value along with providing credit to those who were not exactly good for the money so combining these two things alone spells disaster.
Now, this was not the only thing adding to the global financial pressure, those same banks had been given free passes without oversight to manage and be trusted to be moral with their customer's finances.
What A Mess
Outside of being unregulated and having no government oversight, these banks were allowed to use customer funds to invest which as we lived through went horribly wrong.
Eventually, once the housing market had been shattered and the Stock market on its knees, governments like the USA, UK stepped in taking control and bailing out big banks along with some other big financial companies.
The interesting thing is that in the UK not all banks had a bailout from the taxpayer. Barclays actually borrowed £7 billion from the middle eastern elite so not all bailouts cost the taxpayer more than likely the customer though.
2020 Game Over?
Through 2018 and 2019, the stock market at certain times was dropping down to levels it had not seen since 2008, clearly showing that the world had not fully recovered.
From decade long wars with endless budgets, continuous QE, corporate bailouts, and then Covid19 began. Since the lockdown, the UK economy has shrunk by at least 20% with over 15M people either unemployed or currently being paid by the government to stay at home.
It has been reported that Covid19 could cost the world's economy around $8.8 trillion and we are far from out of this yet, potentially facing another lockdown with more economical downturn leading to more stimulus packages could seriously damage the world's economy to the point we may actually for the first time ever see a complete halt to our financial services.