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Financial Crisis caused by to low interest rates

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Low financial interest rates will lead to financial collapse

German top banker warns against financial crisis

Oswald Grübel is regarded as a knowledgeable observer of the financial markets. The former head of the Swiss banks UBS and Credit Suisse warns urgently against a crash and gives investors tips.

financial crisis

Wednesday, 05.10.2016 15:03 :

Oswald Grübel, formerly Chief Executive Officer of Credit Suisse and UBS, fears that the low-interest rate policy of central banks will lead to a huge crash on global financial markets. „The collapse of this policy will come, because zero interest rates do not make any sense,“ he told the manager magazin.

The population will eventually lose confidence in currencies and central banks. As a result, interest rates are set to rise rapidly, professional investors will loose their bonds, but will no longer find buyers, as the banks have turned out to be too expensive as a buyer.

„The volatility will be as high as never before,“ warns Grübel, who led Credit Suisse from 2003 to 2007 and the Swiss rival UBS from 2009 to 2011. Today, he manages his own assets, estimated at a three-digit million amount, from his Zurich office.

As a special source of risk, Grübel has raised risky corporate bonds. „The Ramschanleihemarkt will lead the investors into a tale of jammers, from which no one gets out,“ he says. For this reason, Grübel, who was the only German to be the head of two major banks at the time, advises to buy gold.

„Actually, only markets that are not manipulated by the central banks, such as commodity or stock markets,“ says Grübel. „I can only recommend: Increase the proportion of gold in your plants to 30 percent.“

Real estate also sees Grübel as an attractive crises: „Investors should now have the courage to borrow mortgages. In the event of a monetary devaluation, they can then repay these debts more cheaply.“

Despite the Kassandra: Grübel himself does not fear the crash, but sees even opportunities. „Panic and sunset moods were in place in 2009. It’s a fantastic place to buy,“ he says. „You have to make use of such opportunities. At the time you could buy very cheap European and American stocks, a unique opportunity.“

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