No less than Microsoft Corp. co-founder Bill Gates warned that an “inevitable crash of the financial markets” is seen in the near future, a scenario that banking and financial regulators must be prepared to combat.This is the warning of some experts in the Philippines as they see most likely to be hit are financial institutions that use public funds in doing business.One of the sources who spoke to the Daily Tribune said regulators in the Philippines must be reminded what Warren Buffet once said: “You will only know who’s been swimming naked when the tide turns.” Buffet was referring to the holdings in an investor’s portfolio. When the market is high or rising, almost all investments go up so you can’t see the problems in a portfolio. Just like the eventuality of tide going out, the market will fall and the metaphor of swimming naked is holding poor investments that can result in a realized loss. In an article that came out in Investopedia written by Shoshanna Delventhal, Gates, now the second richest man after Amazon’s Jeff Bezos, likened the forthcoming financial crash to have same magnitude as the 2008 great recession that resulted to loss of eight million jobs. Bezos, incidentally has almost the same warning. In a social platform at Reddit, Bezos was asked if he thinks there will be another financial crisis similar to the one in 2008 in the near future and the billionaire philanthropist responded with a blunt yet overall upbeat response.“Yes. It is hard to say when but this is a certainty,” the tech executive said.Buffet also talked about the feared crisis. Gates’ fellow billionaire philanthropist has advised investors to buy and hold during market fluctuations and to avoid watching the markets closely.Buffett suggested that years of growth lie ahead but “most American children are going to live far better than their parents did.”He reminded the public that the great recession saw nearly nine million jobs lost and resulted in a loss of $19 trillion from the net worth of households across the US. Gates said he is quite optimistic about how innovation and capitalism will improve the situation for humans everywhere. He has repeatedly argued that the world is improving by almost every objective measure because people care and because of scientific inventions.Read The Rest at :
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