>The big difference is that 2008 was a systemic recession. This one will likely be situational.
"Systemic"; what does that even mean? That the crisis was related to the financial system? Yes, it was one type of financial crisis.
We are now in another. If you believe that the unravelling we are seeing is simply because of the Coronavirus, I think you will be disappointed. While this may not be the same as 2008 (no two crises are the same), there are a number of "systemic" issues in the world that will come under pressure:
- Privately held companies with ridiculous valuations (WeWork, SpaceX)
- China having taken on more debt in 10 years than anyone, ever
- Negative interest rates around the world going *into* recession
- The shale industry blowing up
- Housing bubbles that didn't implode in 2008 (Canada, Australia) coming under pressure
- Fiscal and monetary stimulus in the US like we've never seen
- Risk Parity unwinding
These are off the top of my head. Maybe they all mean nothing, but I doubt it.
"Systemic"; what does that even mean? That the crisis was related to the financial system? Yes, it was one type of financial crisis.
We are now in another. If you believe that the unravelling we are seeing is simply because of the Coronavirus, I think you will be disappointed. While this may not be the same as 2008 (no two crises are the same), there are a number of "systemic" issues in the world that will come under pressure:
These are off the top of my head. Maybe they all mean nothing, but I doubt it.