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.
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.
“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.
In the past, Chainlink (LINK) and Solana (SOL) have been among the most discussed altcoins…
The crypto market is abuzz with excitement as 2025 approaches. While Bitcoin continues to dominate…
The cryptocurrency market never sleeps, and every day feels like an adventure. From household names…
The memecoin craze is evolving, and a new wave of contenders is rising. With fresh…
As Ethereum's value inches toward unprecedented heights, another digital asset is set to make a…
Meme coins are the wild cards of the crypto world—one day they're "to the moon,"…