Coronavirus economic crash – where is the difference to the 2008 financial crisis?
Our Webinar Series
We started with the regular webinar series with the focus on the blockchain, crypto lending, and coronavirus economic crisis. We host the webinar every Sunday, 15:00 CET (Central European Time):
- The first webinar – on the 29th of March – was on the topic “Coronavirus and Bitcoin price – What’s next” (only blog article, we did not record it …)
- The second webinar – on 5th of April – was on the topic “Webinar – Coronavirus market crisis – Where to invest 5’000 $“
- The third one – this one here – “Webinar – Coronavirus crash versus 2008 financial crash – What is the difference?“
- The fourth one – on the 19th of Apil – will be on the topic “Webinar – Why is the central bank interest rate so low and Why is it so high for the SME’s?“
Coronavirus has caused by the time of writing 1’600’000 infections and 96’000 deaths. As a result, most of the countries and their economies have been put on lockdown. This lockdown has caused an economic downturn and as a result, the worldwide recession started.
Coronavirus crisis with rising unemployment and economic crash cause fear. However, every crisis is an opportunity. As first, we need to understand what is happening? After that, we can decide what to do?
During the webinar, we answered the following questions:
- What is happening in the markets now and why?
- In which phases will the crisis play out?
- Is a recession coming?
- 2008 financial crisis vs. 2020 recession – what is the difference?
Here is the Youtube link to our webinar:
The key takeaways from this webinar are the following:
- The coronavirus lockdowns have caused the worldwide recession
- The key phases of the crisis are:
- As first, declining revenues and valuations of the companies
- As next, zombie companies will start to default on their loans. It’s because these companies cannot produce enough revenues to cover their high-interest expense
- As next, the banks are getting heave losses and start to fail because they have to cover their losses with their equity
- As next, Monetary reset will follow. This will lead step to the new gold standard
- The coronavirus crisis is driven by the real economy. As next, it will transfer into a banking crisis. And next, it will transfer into a monetary reset
- The 2008 financial crisis was at first the banking crisis, which was triggered by the subprime mortgages. However, this crisis was aggressively contained by the central banks with their money printing and by the government’s with their fiscal stimulus
Additional information is available in the following blog articles:
- Coronavirus and Bitcoin price – What’s next?
- Coronavirus market crisis – Where to invest now?
- Coronavirus market crisis versus the 2008 financial crisis – what is the difference?
- Coronavirus and Blockchain-based financial system – are we ready?
Please note, this is not financial advice. You should always consult with your financial advisor before investment decisions.