Global Financial Crisis Analysis: Market Trends, Risks, and Solutions

This report delves into the impending global financial crisis, analyzing various contributing factors and potential impacts. It examines the role of the Chinese stock market, the warnings from financial leaders like Gordon Brown, and the implications of rising corporate debt in the US. The report highlights the impact of the US-Sino trade war, including its effects on currency values and investor behavior. Furthermore, it explores the currency crisis in Turkey, its causes, and the reactions of the US and Turkish governments. The report provides a comprehensive overview of the current economic climate, identifying key risks and potential triggers for a global financial downturn. The report is a valuable resource for understanding the complexities of the current economic landscape.

Impending
Global
Financial Crisis

Chinese Stock Market
Chinese stock market hit the lowest since
January 2016
Chinese leaders urged Asian leaders to unite
against the US’s protectionist policies
The trade war between China and the US is
likely to create turmoil in the market (Wearden,
2018)

Another Financial
Meltdown
Gordon Brown has warned that the world is
slipping into another financial crisis, like
2008
Due to leaderless world, there are
chances of an economic collapse.
He has given an awakening call to all
leaders across the globe (Turak, 2018).

US Markets
The roots of
the next
recession lies
in debt-to-cash
ratios.
This is the
biggest
warning for the
next recession
Corporate debt
in the US is
now higher
than it had
ever been in
the past.
In June, the US
corporate debt
was $6.3
trillion, which is
immensely
massive (Turak,
2018).

US-Sino Trade War
The world’s two
greatest
economies are
heading towards
a full-scale trade
war
The Trump
government has
started this
trade war,
thwarting the
economic
growth of China
(Meredith, 2018)
US- Sino trade
war will
encourage
investors to
favour yuan
over US dollar
If the US
continues with
its financial
sanctions over
China, then the
dollar will not
remain a default
currency

Currency Crisis in Turkey
The debt crisis in
Turkey due to debt
defaults and
international
repercussions forced
Turkey to devaluate its
currency.
Turkey’s Lira lost 40%
of its value against US
$
According to Erdogan,
President of Turkey, the
US is responsible for
currency crisis in
Turkey (Meredith,
2018)

References
 Meredith, S., 2018. Amid a currency crisis, Turkey's central bank vows to
step in to contain rampant inflation. [Online] Available at:
https://www.cnbc.com/2018/09/03/turkey-crisis-central-bank-vows-to-step-i
n-to-contain-inflation.html
[Accessed 13 September 2018].
 Meredith, S., 2018. US-Sino trade war could push investors to favour yuan
over the dollar, former PBOC governor says. [Online] Available at:
https://www.cnbc.com/2018/09/11/us-china-trade-war-investors-could-soon-
favor-yuan-over-dollar-former-pboc-governor-says.html
[Accessed 13 September 2018].
 Turak, N., 2018. The biggest red flag for the next recession? Corporate debt
to cash ratios, top economist says. [Online] Available at:
https://www.cnbc.com/2018/09/12/the-biggest-red-flag-for-the-next-recessio
n-corporate-debt-to-cash-ratios-top-economist-says.html
[Accessed 13 September 2018].
 Wearden, G., 2018. Chinese stock market hits 31-month low as Xi and Putin
blast protectionism. [Online] Available at:
https://www.theguardian.com/business/live/2018/sep/12/china-president-xi-
protectionism-trade-war-oil-hurricane-florence-business-live
[Accessed 13 September 2018].