The Next Financial Crisis Is Coming, But What Will Be The Trigger?

Though mainstream media financial news pundits may not agree, the economic problems that led to the collapse of 2008 remain. Fundamentally, nothing has changed.

But that hasn’t stopped the financial markets around the globe from rising significantly since the March 2009 market bottoms. With The Dow Jones up above 11,000 points and the Federal Reserve promising to keep firing magic bullets until the economy is back on its feet, the future looks bright. Or does it?

According to Dave Forest of PiercePoints, the next crisis is about to unfold and there are a variety of situations which could trigger it:

It’s not going to be another Lehman.

A failure of a bank or major corporation won’t cut it anymore. Governments globally have shown they’re willing to step in and bail out private enterprise to any tune.

Last year, it looked like another crisis might arise with the failure of a government. But the Greek crisis back in May showed that governments are also willing to step in and bail out other governments.

So what should we be looking for as a potential trigger to another financial crisis?

It’s going to be something at the government level. Something that makes governments unable to intervene and create new money in order to bail out trouble spots in the private sector.

There’s a few ways this could happen.

In addition to a possible breakdown in bond markets, a public outcry in the U.S. similar to that of Europe, and a continued devaluation of fiat currencies around the world, Forest suggests that there’s one more way that the purported recovery could come unhinged.

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