The shape of the world economy

Is a global economic crash such as the one that occurred in 1929 possible?

Warren Buffet once said – “It’s only when the tide goes out that you learn who’s been swimming naked”.

Is it possible that the global tide of financial inbalances today will at some point fall like dominoes and expose governments and ordinary citizens that are financially over-exposed to indeed be naked?


…As if trade wars and currency devaluations by all exporting countries was not enough, we also have a global crude oil supply problem, peak oil and global warming.

Now add a derivative market problem that did not exist in the 1920s. According to the Bank of International Settlement data there are $370trn derivatives sitting on a wall just waiting for somebody to give them a push. Today every time a derivative trade goes bad the losses run into billions of dollars. A recent mal-investment on a derivatives bet in South Africa cost the trader R200m. A derivative collapse is on the cards and nobody knows the exact damage it will cause.

Moneyweb