5 Minute Freewrite - Economy of Doom

All, doing a 5 minute freewrite. Thank you for reading.

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Economy of doom, this is a topic that worries everybody whenever there are signs of this happening. And with so many uncertainty happening around us, one event can lead to the collapse of another and then creates a domino effect and the whole economy spirals downwards.

Is it even possible that one event can lead to such catastrophic downward spiral? In today's context, it is highly possible due to the fact that the economic situation globally is very delicate. Banks that buy out government bonds face a risk if the government encounters a bail out and land themselves in a deeper debt. And when this happens, to recoup losses, banks will increase interest and more debt will be incurred. To note that, even for big countries, there are actually loads of underlying debts.

So to be honest, we have decentralize our assets so that we don't get pulled down by a single source.