In 2006, while the US housing market was at its supreme, Robert Wiedemer, an obscure economist predicted that the country was headed towards a massive crisis. He, along with his economist friends, published their views on the impending doomsday in the book, America’s Bubble Economy. It was 2006, and many thought of Wiedemer et al as doomsayers. And then, in 2008, the world experienced one of the worst financial crises of all times. It is 2014, and Wiedemer has something more to say. He thinks that there will be a major financial crisis in 2014 that will be an aftershock of what happened in 2008.
Wiedemer is not alone in predicting the 2014 crisis. Donald Trump, while appearing on an interview on Fox News, had similar views about the impending 2014 crisis. On the interview, he said that the US economy was performing miserably. He also added that “recession” was the right word to describe the current state of US economy.
There are a number of reasons why esteemed economists are predicting a major economic catastrophe in 2014. According to estimates, the total debt in US is to the tune of $16 trillion, and it is increasing with each passing day. In his interview, Donald Trump said that in the coming times, the debt can increase to as high as $22 million. Another thing that makes the 2014 crisis all the more palpable is the high unemployment levels in the country. While officially the unemployment is at 8.2%, experts believe that it is as high as 15%.
Experts are also of the opinion that the borrowing spree that we saw in the past few years has gone out of control, and today the economy is at a stage where it cannot payback to meet their obligations. When 2008 recession happened, a lot of companies went bankrupt, but there was a plethora of companies that would have met the same fate had the Federal Reserve not stepped in. The Fed did bail out a number of companies, but it was at the expense of millions of taxpayers’ money. The Fed also injected money into the market by ruthlessly printing more and more of it. This mindless printing has created a bubble in the economy which will burst sooner or later, but considering the overall economic scenario, it seems that it might happen this year only.
The aftershock of 2008 recession will hit us this year in all probability, and it is important for all of us to brace ourselves for the any eventuality. We hope that this information proves useful to you.