General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Bank of England is warning a financial crash is coming
applicable to us too, obv.
The Bank of England has issued a stark new Financial Stability Report and beneath the cautious language lies a clear message: the global risk environment has deteriorated sharply. From AI bubble valuations to fragile shadow banking systems, from overstretched credit markets to potential contagion across sovereign debt, a systemic crisis now looks more like when than if.
In this video, I explain what the Bank is really saying, why markets are repeating 2008 mistakes, and why the UK is deeply exposed.
0:00 Bank of England Warns of Rising Risk
1:10 AI Bubble Concerns and Market Overvaluation
2:25 Fragile Credit Markets and Corporate Leverage
3:40 Echoes of 2008: Hidden Risks and Opaque Structures
5:00 Shadow Banking Risks and Flying Blind
6:40 Sovereign Debt Concerns and Limited Fiscal Capacity
8:15 UK Exposure to Global Contagion and Panic Risk
10:00 SME Lending Collapse and Real-Economy Damage
11:40 Household Stress, Renters at Risk, and Cross-Contamination
14:20 Climate Financial Risks and Systemic Instability
Lovie777
(21,439 posts)I have also mentioned 2008 a few times. The end of George W presidency, the financial status in the USA sucked, President Obama and the Democratic party with the help of a few Republicans pull us back to a more stable economy.
Then shithole won 8 years later, and back to financial hardship coupled with COVID. Then President Biden was pulling out us from shithole's 1st presidency, but Republican's lied so much while making up shit coupled with the corporate Media parroting same, shithole's back.
And guess what, it has not been a year, and financially, the USA sucks, plus we're in the brink of war, plus shithole and the republican want the USA in a communist RWer way.
SWBTATTReg
(25,964 posts)They have removed some of the original financial protections if I'm not mistaken here in the US, and they tried to eliminate the CFPB
As of 2025, selected enforcement actions:
Zelle Peer-to-Peer Payments Lawsuit Dismissal
Initially filed in December 2024 against Early Warning Services and major banks (JPMorgan Chase, Bank of America, Wells Fargo) for allegedly failing to
prevent fraud and reimbursing victims.
Alleged consumer losses exceeded $870 million.
Dismissed with prejudice in March 2025 under Acting Director Russell Vought, permanently preventing future claims.
Capital One, National Association & Parent Company
Lawsuit filed January 14, 2025 addressing unspecified consumer protection violations.
Experian Information Solutions, Inc.
Lawsuit filed January 7, 2025 involving allegations related to consumer reporting practices.
etc.
However, I do seem to recall that they have removed or reduced the stress tests for banking institutions, that ID banks subject to adverse market conditions, not a good thing.
Another reason IMHO, is that the markets literally have been going up for it seems like forever. How long will this continue?
Another reason: The US Economy is slowing down, and other market factors are impeding the markets, e.g., tRUMP's stupid tariffs, consumers
still paying more $ for goods, and no relief seems to be coming from djt, who promised this during his campaign.
SamuelTheThird
(522 posts)ie Commercial real estate & the car loan situation. Also the situation with Japan impacts us-
https://www.barchart.com/story/news/36511473/is-a-global-margin-call-coming-how-a-bank-of-japan-rate-hike-could-trigger-the-next-market-shock
GreatGazoo
(4,378 posts)Powell will be replaced in May. Money printer go "brrrrrr"
The higher risk is inflation, not crash. 1929, 1934, 2001, 2008, 2022, tulip bulbs are not repeatable.
Kid Berwyn
(22,576 posts)In 2008, we even bailed out foreign banks.
https://bettermarkets.org/newsroom/us-bailed-out-foreign-banks-2008-shouldnt-have-do-again/
https://www.cato.org/commentary/federal-reserves-covert-bailout-europe