The majority of us live in our little bubbles. When we go online, we read news that’s predominately about events that rarely impact us directly.
Now and then, a newsworthy event may be big enough to affect your life, sometimes for the worst. It just depends on who you are and where you’re at.
Right now, one of those events could be happening as you read, especially if you have money in the stock market.
Some even think what’s occurring now in the global stock markets is worse than the GFC of 2008. Indeed, the current roller coaster mayhem witnessed in global stock markets is on a scale that has spooked many, including Damian McBride, a former adviser to British Prime Minister Gordon Brown.
According to The Independent, McBride was also the chief of communications at the U.K. Treasury for a period during England’s last Labour government.
And he has a few tips to share about how the ride out an economic Armageddon.
This is what he had to say.
“Advice on the looming crash, No.1: get hard cash in a safe place now; don’t assume banks & cashpoints will be open, or bank cards will work,” McBride tweeted.
“Crash advice No.2: do you have enough bottled water, tinned goods, & other essentials at home to live a month indoors? If not, get shopping,” he tweeted again.
“Crash advice No.3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.”
Well that’s sobering.
McBride got one tweet back from @AndrewzCooper that asked: “Really? What makes you think this is that serious? (Genuine question.)”
McBride replied: “Simply this… – we were close enough in 2008 (if the bank bailout hadn’t worked), and what’s coming is on 20 times that scale.”
And he followed up with another tweet for good measure.
“… none of the levers we could pull in 2008 are available now given the economy’s already flooded with cheap money.”
And he’s been tweeting some more about it ever since such as the below:
And one more…
Now, it would nice to laugh off McBride’s advice and call it alarmist, but the cold reality is that global markets are currently somewhat panic-stricken. Most of it is being derived by concerns over China’s economic and financial market problems.
The biggest fear is that a failing Chinese economy will ignite a chain-reaction around the globe.
All eyes are now on how the Chinese authorities will again try to manage the crisis; everything else they have done thus far has been ineffective. The communist government’s involvement in the market has been a large part of the problem in the first place.
Thus, there remain opportunities for it to go from bad to worse, so you may need to stock up with canned food after all, but let’s hope not, and I’m not saying that glibly.
The below China Uncensored video was done a month ago just after the Chinese stock market really started going sour. It provides a good wrap-up on why the Chinese stock market differs from other markets: