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5 Signs of a U.S. Economy Collapse in 2018? What Will Happen, How to Prepare

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How close are we to the next U.S. economic collapse in 2018?

The answer to this question is that we could be quite close. The stock markets are trading at all-time highs, we have large debts outstanding by both the federal government and individual Americans, and there is a lot of uncertainty about President Trump and his administrative team.
We tend to always look at how the past has turned out and never look towards the future. For instance, if the present is going well, then we assume that this trend will continue. If we come out of an economic collapse, then there is a build-up of fear that it may happen again. Why not look at the past, present, and future together to determine whether a financial crisis will occur and proactively be ready?

Taking time to do this now will come with great benefits such as protecting your investment portfolio, managing any debts outstanding, knowing where to look for employment opportunities, or knowing where to start a new business venture. By having more knowledge, a more informed decision can be made.

If a U.S. economic collapse occurs, it will happen quickly. No one would predict it. That’s because the signs of imminent failure are difficult to see.

For example, the U.S. economy almost collapsed on September 17, 2008. That’s the day the Reserve Primary Fund broke the buck. Panicked investors withdrew a record $140 billion from money market accounts where businesses keep cash to fund day-to-day operations.

If withdrawals had gone on for even a week, the entire economy would have halted. That meant trucks would stop rolling, grocery stores would run out of food, and businesses would shut down.

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Fortunately, the Federal Reserve Chairman and U.S. Treasury Secretary noticed the signal and knew what it meant. Ben Bernanke was a Great Depression scholar. Hank Paulson was a Wall Street veteran. Their bailout plan supplied enough cash to prevent a total collapse. The 2008 financial crisis did plenty of damage, but it could have been much worse.

 

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