Since 1637, and the bursting of the "Tulip" mania crisis, there have been 37 major financial crisis. In fact during most of this period there was a financial crisis every ten years on average. One of the longest periods of financial stability was from the end of World War II to the 1973 financial crisis that was engendered by the first Oil prive shock. It is perhaps because of this that so many people have forgotten what happens during a deep financial crisis, as there are not many alive today who remember the Great Depression, or the 1890's great financial crisis that sparked bankruptcies around the world as a result of over building of railroads in Latin America, the United States, and even China.
In every case the financial crises have been a result of the over-expansion of the banking sector. Every crisis seems to have been more severe than the previous, leading many Academics, [Minsky among others] to comment that "financial fragility is a feature of all capitalist economies".
The Gnostam Consulting report is designed to help the reader identify his or her major investing risks as a result of the financial crisis of 2008, which has now extended to the 2010 Euro Zone Financial Crisis. It highlights that seriousness of the financial crisis in both the Euro Zone and the US, and how it will be almost impossible to exit this crisis without real banking reform and growth.
The report outlines ways in which investors might protect their assets, in an environment of negative real interest rates, and limited opportunities for the governments of the Euro Zone and the US to reflate their economies through deficit spending.
Finally the report highlights the importance of investing globally, and of avoiding banks and financial institutions as long term investments while focusing on 'real asset" investing and on global economic trends which will revolutionize the world. Amongst these, the rise of big data management, energy alternatives to fossil fuels, and healthcare delivery efficiency and therapies.
Gnostam Consulting [www.gnostamconsulting.com]
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