THERE ARE FINANCIAL BUBBLES BREWING IN A FEW AREAS

If you thought we were out of danger of a financial crash similar to what we experienced in 2007 / 2008, you would be naive in thinking that.

Here are but a few examples where massive bail outs are being sought, which publicised minimally in the mainstream media;

Notwithstanding the property bubble in the UK that continues to grow, there are too big to fail organisations that are in very deep debt.  In the aftermath of Brexit, much of the investing public's attention has turned to Italian banks which are in desperate need of a bailout as a result of €360 billion in bad loans growing worse by the day

1.  Italy has asked the EU for assistance as they are circa two trillion Euros in debt.  Middle of 2016, after the BREXIT vote in the UK, Italian politicians begged the European Union for permission to bail out troubled lenders sitting on more than €360bn of bad loans.

2.  The German Banks have also been exposed to large debts, so much so that they have asked for assistance from the EU.  As reported by Tyler Durden of Zerohedge   "In Europe, the bailout does not need to be so large. A €150 billion program should be enough to help European banks recapitalize," said David Folkerts-Landau.

As far back as September 2016, there were fears raised that Deutsche Bank might have to tap its investors for cash are among the reasons its shares have plunged, and raised fears that it could present a Lehman Brothers-style moment for the markets. However, top bankers and policymakers all played down the prospects of a repeat of the collapse of Lehman in 2008 as reported by the Guardian.

In addition to this old chestnut, there are other areas where a bubble is building, like hire purchase loans for automotor vehicles where lending is going off the charts like housing mortgages in the lead up to the 2007/2008 crash.

The report below, which is an example of these other areas has been  Authored by John Rubino via DollarCollapse.com,

One of the interesting things about the Great Recession was how Canada’s financial system sailed through it largely unscathed. Its banks were regulated wisely and behaved prudently, its citizens avoided the extreme stupidity of their credit-addicted neighbors to the south, and its government refrained from doubling its debt every eight years. It certainly looked like Canadians were smarter – or at least more emotionally mature – than we were.

But instead of Americans learning from Canada, Canadians appear to have concluded that America had it right after all. In the decade since the global financial system’s last near-death experience, Canadians have started to behave like turbo-charged Americans. A few recent examples:

Canadians Are Buying A Record Number Of New Cars, With A Record Amount Of Financing

(Better Dwelling) – Sales of new motor vehicles across Canada rose to an all-time record for February.



Average Sale Price For New Vehicles Rises

Consumers are purchasing more expensive vehicles too. Over $5 billion was spent on new vehicles for the month, bringing the average to $40,100 – up 3.4% from the same time last year.



Consumers Are Buying “More Car Than They Can Afford”

The uptick in average sale price is due to longer financing terms for buyers. According to the Financial Consumer Agency of Canada (FCAC), Canadians are “increasingly purchasing more car that they can afford,” due to longer financing becoming fashionable. The agency notes that average leases have crept up 2 months, every year since 2010. According to the Bank of Canada (BoC), the average loan was 74 months as of 2015. Longer terms bring down monthly payments, but increases the total cost of the loan.

The Rise Of Non-Prime Lending In The Auto Industry

The right to debt seems to be a topic all Canadians are embracing, and the auto sector is no different. The Bank of Canada has estimated that 25% of borrowers are non-prime, which in case you didn’t know is Canadian-English for “sub-prime.” These buyers generally have a FICO score below 670, and face predatory loans with up to 25% interest. This makes it difficult to build positive equity on car loans.

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IN CONCLUSION

We can expect more financial heartache, which will undoubtedly impact Europe, UK and America.  Do not be fooled by all the political hype during these upcoming elections, where the issue of BREXIT is being blamed for all the financial woes of the UK, Europe and the rest of world.

None of this should be a surprise to you, but in many cases many people will find this is very surprising because the Lame-Stream media are not reporting extensively on these issues, many of these issues that are being raised in different quarters of the world because it goes against their narrative.