In the statements that affect the international economic agenda, economist Alex Krüger pointed out that customs tariffs in the United States trigger a situation similar to the previous financial collapse. Krüger said that the conditions of a market crisis similar to 2008 may occur as a result of pressure and contraction that the current trade war could be on credit markets.
Tariff Effects
Krüger stated that the tariffs implemented by Trump administration may have a negative impact on the credit markets. Although the users are ready to pay, it is foreseen that banks may experience disruptions in the loan flow as a result of the cautious behavior of the banks (squeezing credit taps). This may cause economic activity to slow down and deepen the uncertainty environment in the market.
The economist said that uncertainties in macroeconomic indicators may lead to a timid about new borrowing of loan institutions. This development is thought to bring the risk of sudden and radical drop in the S&P 500 index. A contraction in the credit markets may adversely affect the general market performance.
USA and recession
It is seen that the problems in the credit markets have a high probability that they have chained effects. This uneasy environment in the economy may manifest itself with consumer expenditures, financial status of enterprises and disruptions in the banking sector.
Alex Krüger quoted his views on the market with the following statements:
Alex Krüger: “In the decline in 2008, the markets weakened by 50 %in a year. Despite the increase in economic positive news, the increase in liquidity was not enough. If the loan market collapses, it will be very difficult to recover. A similar decrease in two tweets may be experienced.”
In addition, the Krüger, who pointed out the potential of tariffs to create gradual crisis effects on the economy, said that the current situation raises extensive risk scenarios. According to the specified scenario, stagflation, consumer expenditures, freezing and enterprises may experience financial problems. In this scenario, the risk markets, including Bitcoin and other crypto currencies, may blow seriously. While the dollar is weakening, global gold sales due to liquidity and collateral needs can also bring sales, although not long -term.
Increased economic uncertainty and risks to credit markets are among the factors that market actors should follow carefully. This situation, which may affect the general course of the market, will require closely monitoring of economic indicators and international developments in the future.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
