Raoul Pal, former managing director of Goldman Sachs, invests in Bitcoin in a scenario of the global financial crisis. The expert also highlights that millennials will adopt the upcoming system change.
Raoul Pal, former sales manager for hedge funds for Goldman Sachs In Europe, it is preparing for a complete change in the financial system as we know it. In the opinion of the financial expert The global economy will go through a complex scenario of difficulties that will affect the new generations significantly.
The investment strategist presented his views in a recent chapter in the Podcast from Lindzanity with Howard Lindzon. Pal is an expert with 30 years in the financial industry, he worked in 5 years Goldman Sachs;; He is also the founder and CEO of Global macro investor, a service that makes market analysis easier.
During the program, the financial expert predicted the stock would drop 20% in the short term before a three or four month recovery. With the corona virus pandemic continuing to devastate the global economy, Pal predicts that many companies will go bankrupt and several sectors of the economy will be paralyzed.
I think the balance of probabilities is that this is a much more permanent event in terms of economic impact[…] and I think it will be the biggest bankruptcy event in history.
An impending debt
Over the past few weeks, the US Federal Reserve (FED) has taken various measures to curb the economic impact of the COVID-19 pandemic. On March 24, the Fed announced $ 6 billion in pressure.
The central bank has also invested millions of dollars in the repo market every day to ensure that the financial system stays afloat. In addition, the company has begun buying billions of dollars in bonds to maintain corporate funding and has lowered the interest rate to 0%.
The veteran of Wall StreetCaitlin Long previously commented on the Federal Reserve’s liquidity measures Tweet of March 23 argued that it was “The last remnant of capitalism died in the United States“And added:
Monetization of the Fed’s debt is now unlimited. The nationalization of the US capital mkts, which began in 1968, has now been completed. This result was predictable (the virus was just the trigger). The Fed’s balance exceeds $ 10 trillion this weeka.
Financial guru Robert Kiyosaki was also critical of the Fed’s liquidity stocks and said the reserve was printing “fake dollars“” He also warned that EE’s current debt. USA “With GDP it is 110% and continues to increase” and that the country is bankrupt.
Millennials will change
Among the opinions Raoul Pal expressed during the recent program of PodcastThe financial expert noted that the looming crisis will be so severe that it will permanently change the psyche of the next generation. “”This is a generation change“He warned and continued:
What it will cause is that the younger generation will see everything differently forever. You will view the pension system with some suspicion, which will fail in this scenario. They will look through the stock markets so that they think “this is not for me”. You will have different opinions about risks and savings than previous generations.
To illustrate how an entire generation’s attitude to the financial system can change, Pal took the example of millennials as an example. In his opinion, this generation group will be the most open to changes in the financial system.
The millennial generation was already shaped by the events of the years 2000 and 2008. You don’t trust the financial system.[…] They will reject what has preceded them and accept things that are new and different.
Various studies in the past have shown that millennials and younger generations continue to trust assets such as: Bitcointhat you would rather invest in.
Former managing director of Goldman Sachs invest in Bitcoin
To protect itself from the possible negative effects of the impending global financial crisis due to the coronavirus pandemic, Pal announced that it is investing a significant portion of its assets in Bitcoin.
The former managing director of Goldman Sachs During the program, he admitted that he would transfer 25% of his savings over the next 12 months Bitcoin. In addition, the capital is diversified. “”25% gold, 25% cash and 25% trading opportunitiesHe commented.
In the past, Pal rated cryptocurrencies positively. At the beginning of March, the financial expert published one Tweet where he warned of the crisis and suggested saving in gold and Bitcoin. Recently the author of “Rich father, poor fatherKiyosaki made similar recommendations to deal with the impending economic recession.
I cannot express how optimistic I am on Bitcoin. We run the risk of losing the entire system. I know that they will find a way to save it, but all trust is lost.
Gold boys / girls – you’ll be fine too. It’s just that $ BTC has by far a larger upward trend but is more risky than gold
– Raoul Pal (@RaoulGMI) March 19, 2020
I cannot express how optimistic I am with Bitcoin. At the moment there is a risk that we will lose the entire system. I know that they will find a way to save him, but all trust is lost. Golden boys / girls – you’ll be fine too. It’s just that BTC has a bigger advantage by far, but it’s riskier than gold..
Sources: DailyHodl, Cointelegraph, DailyBitcoin
Hannah Estefanía Pérez ‘version / DailyBitcoin
picture of Youtube