Categories: FinanceNews

Deutsche Bank Researchers Deem A Stock Market Collapse Necessary To Boost Economy

Fixing the global economy is a massive task, and no one seems to have a solution for this problem. Deutsche Bank’s fixed-income research team feels the only solution is to collapse the stock market in its entirety. A rather bold statement, but the average Bitcoin user will not be surprised by this declaration.

What if The Stock Market Were To Collapse?

To put things into perspective, things have hardly ever looked as bleak for the global economy as they do right now. Even though the stock market is firing on all cylinders, GDP growth is hard-  if not impossible – to come by in a lot of countries. Mainly the United States find themselves in the midst of this awkward scenario where all signs are positive, yet nearly no growth is to be noted.

The Deutsche Bank’s fixed-income team has done some research and proposed what seems to be the most viable solution to them. It is safe to assume a lot of people will object this idea, though. Collapsing the entire stock market is not in anybody’s playbook right now, even though it may be the only realistic solution.



To be more precise, a lot of the issues we are dealing with right now come forth from central banks benefiting from interest-rate cuts. Other policy measures to spur economic growth, such as quantitative easing and helicopter money, are only adding more problems to the mix. This particular approach has been hitting a glass ceiling for quite some time now, and more drastic measures seem more than warranted.

Related Post

“The conclusion is that without an external economic shock it is hard to see policymakers being prepared to take dramatic, fiscal action to jumpstart the global economy and bounce it out of a financial repression defined by low and falling real yields to one that at least initially is defined by rising nominal yields through higher inflation expectations. Ironically the shock that is needed would require a collapse in risk assets for policymakers to then really panic and attempt dramatic fiscal stimulus.”

Granted, collapsing the stock market would send a global ripple effect throughout a fragile economy. At the same time, if no action is undertaken, a global collapse seems imminent. Sometimes, we have to sacrifice something to avoid a bigger loss. Looking at the bigger picture, collapsing the stock market would drive proper economic growth.

Image credit 1

If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Top 5 DeFi Coins to Watch for 2022

The DeFi sector of cryptocurrency is valued at over $168 billion, with over $10 billion…

8 hours ago

AMC CEO Announces Plans to Accept Shiba Inu via Bitpay in the Next 2-3 Months

In a twitter post yesterday, Adam Aron, CEO of AMC Theaters, announced the company's plans…

13 hours ago

Loopring and Gamestop – What Is Up with These Two?

Loopring and Gamestop are two entities that, at first glance, seem very different. One is…

14 hours ago

The Safest Methods to Deposit into Online Gambling Accounts

The rise of online betting is plagued with inevitable setbacks. One of which is the…

14 hours ago

GenshinShibInu Price Up Over 3000% After PancakeSwap Listing

GenshinShibInu (GSHIB) is the latest meme coin that gained over 3000% in the past 24…

14 hours ago

Top 5 Hottest Metaverse Projects Right Now

As the Metaverse trend picks up, we see more and more emerging projects entering the…

16 hours ago

This website uses cookies.