Is The World Now Headed Into The Next Financial Crisis?
With the Dow still above 18,000 and the dollar surging, is the world now headed into the next financial crisis?
A portion of today’s note from Art Cashin: Check Your Rabbit’s Foot – Here’s the opening of a Bloomberg column that’s getting passed around this morning:
Next year ends in a 7. If you’re superstitious or a little loose with statistics, that makes us due for another financial crisis. The biggest one-day stock drop in Wall Street history happened in 1987. The Asian crisis was in 1997. And the worst global meltdown since the Great Depression got rolling in 2007 with the failure of mortgage lenders Northern Rock in the U.K. and New Century Financial in the U.S.
You can’t really mark the next crisis down on your calendar, of course. The point is that crackups come fairly regularly. And some of the prerequisites for the next one do seem to be falling into place.