Total meltdown! Stock market, house prices and Bitcoin set to crash at same time – Express


There are good reasons to be worried as the cost-of-living crisis drags on, interest rates continue to rise and the Chinese economic bubble prepares to burst. So are we heading for an “everything crash”?
I consider myself an optimist but even I’m feeling a bit gloomy today. In the US, the S&P 500 has been sliding from recent highs falling four per cent over the last month.
London’s FTSE 100 index is also falling. It is down another one per cent today and has gone nowhere for years.
Global investors are dumping Chinese equities as hopes fade that Premier Xi Jinping will race to the rescue of its crumbling property sector.
The world is on the brink as property giant The Evergrande Group files for bankruptcy with more than $300bn (£230bn) in total liabilities.
The Chinese export-led growth model ran out of road years ago, and Jinping’s aggressive “wolf warrior” pose towards the West is hurting him more than it hurts us.
Youth unemployment is so high Beijing has stopped publishing the figures. The last set showed 21 percent were out of work. The real figure is probably closer to 50 percent.
China will only avoid meltdown if Jinping comes up with another massive stimulus package, but Beijing can’t keep doing that forever.
Now feels like a good time to get out of China. A heap of Western businesses already have.


The UK property market looks shaky too and some claim house prices could crash by up to 25 percent.
July’s inflation figure was disappointing and this could force the Bank of England to hike interest rates all the way to six percent, up from today’s 5.25 percent.
Although mortgage rates have fallen slightly in recent days, that short-lived trend is likely to come to a halt. 
Further house price falls are inevitable, especially if reports about the buy-to-let landlord exodus are confirmed.
Personally, I don’t expect a full-blown house price crash. So far, prices have been surprisingly resilient.
There are so many people desperate to get on the property ladder that any dip could trigger a wave of new buyers.
Also, seven out of 10 homeowners have already cleared their mortgage and have nothing to fear from higher interest rates.
The Bank of Mum and Dad is propping things up, too.
Personally, I use Bitcoin as a barometer of economic sentiment. When investors are feeling bullish and believe they can make money out of nothing, the controversial crypto flies.
It’s been stuck at just below $30,000 mark for the last few months. It’s down 10 percent in the last week to $26,317.70. For Bitcoin, the crash is already here.
Perhaps the best economic weathervane is the copper price. It’s known as Dr Copper, because of its ability to take the global economic temperature.
Copper has a heap of industrial uses and is in demand when the economy booms, but the price falls when things slow down.
With the world on the brink of recession, copper futures have fallen 12.64 percent in the last six months.
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Plenty of experts are forecasting a brutal meltdown. Like Michael Burry, who predicted the financial crisis and was immortalised in the Hollywood movie The Big Short.
He’s just bet his $1.6billion fortune that both the US S&P 500 and the tech-focused Nasdaq index will crash.
Investment legend Jeremy Grantham, who predicted both the 2000 crash and the financial crisis of 2007/08, reckons there’s a 70 percent chance of a stock market crash.
He says it could be as bad as the 1929 Wall Street Crash.
‘Rich Dad Poor Dad’ author Robert Kiyosaki also expects the stock market to suffer a massive, historic crash.
In fact, he is so certain it’s coming, he has been warning about it for more than two years. Burry and Grantham are also famed for regularly crying “crash” but have been wrong more often than right.
As Grantham himself admits, calling a crash is easy. Naming the date is the hard part.
So don’t put too much faith in the doomsayers. They started the year predicting a crash, only for US shares to rocket on the artificial intelligence boom.
Nobody knows for sure if everything is about to crash so don’t put too much faith in those who claim they do. But as I said, I’m feeling a bit gloomy.

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