The manager of the hedge fund Universal Investment Mark Spitznagel warns of the impending collapse of the financial market, linking it with a huge credit «bubble» in the US economy – the largest in history. Spitznagel, who works with Nasim Taleb, the author of The Black Swan, has previously expressed concern about the collapse, which may be more serious than the crisis of 1929. In his opinion, the reason is artificially low interest rates and fake liquidity in the economy after the global financial crisis. Spitznagel said that credit «bubbles» inevitably burst, and this is a process that cannot be stopped. He claims that debts need to be paid, otherwise default will follow, and the current level of debts is unaffordable. Bank of America also expresses concern about the debt that the United States has accumulated over the past 10 years at zero interest rates, and warns of serious economic problems ahead. This assumption is confirmed by the growing number of defaults and delinquencies on high-risk corporate debts. At the moment, the US national debt has exceeded the $33 trillion mark for the first time. According to forecasts, by 2025, the cost of servicing this debt may reach record high levels.
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