Former Goldman Sachs executive invests in Bitcoin, warns that the worst insolvency scenario in history is approaching

Raoul Pal, former Goldman Sachs executive, invests in Bitcoin in the face of a global financial crisis. The expert also highlights that millennials will embrace the system change that is coming.

Raoul Pal, a former Goldman Sachs hedge fund sales leader in Europe, is preparing for a complete change in the financial system as we know it. In the opinion of the finance expert, the global economy will go through a complex scenario of difficulties that will significantly affect the new generations.

The investment strategist presented his views in a recent episode of the Lindzanity podcast with Howard Lindzon . Pal is an expert with 30 years in the financial industry, he worked for 5 years at Goldman Sachs ; He is also the founder and CEO of Global Macro Investor , a service that facilitates market analysis.

During the program, the finance expert predicted that the stock will experience a 20% drop in the short term before a rebound of three or four months. As the coronavirus pandemic continues to wreak havoc on the global economy, Pal predicts that many companies will go bankrupt, crippling multiple sectors of the economy.

"I think the balance of probabilities is that this is a much more lasting event in terms of the economic impacts […] and I think it will be the largest insolvency event in all of history".

A looming debt

In recent weeks, the US Federal Reserve (FED) has implemented various measures to curb the economic effects caused by the COVID-19 pandemic. On March 24, the FED announced the printing of USD $ 6 billion .

The central bank has also injected millions of dollars into the repo market every day to ensure that the financial system remains afloat. In addition, it has started buying billions of dollars in bonds to keep companies financed, and has reduced the interest rate to 0% .

Wall Street veteran Caitlin Long previously commented on the Federal Reserve's liquidity measures, In a March 23 tweet she argued that it is " the last vestige of capitalism died in the United States, " adding:

Monetization of US Federal Reserve debt it is now unlimited. The nationalization of the US capital mkts, a process started in 1968, is now complete. This result was predictable (the virus was just the trigger). The Fed's balance sheet exceeds $ 10 trillion this week .

Finance guru Robert Kiyosaki also viewed the Fed's liquidity stocks critically, saying the Reserve is printing " fake dollars ." In addition, he warned that the current debt of EE. USA "With GDP it is 110% and it continues to rise" and that the country is bankrupt.

Millennials will embrace change

Among the opinions Raoul Pal expressed during the recent podcast program , the finance expert noted that the looming crisis will be so severe that it will permanently change the psyche of the next generation. " This is a generational change ," he warned and continued:

What it will cause is that the younger generation will see everything differently forever. They will look, with some suspicion, at the pension system that is going to fail in this scenario. They are going to look through the stock markets in ways that will think "this is not for me." They will have different opinions on risk and savings than previous generations.

To illustrate how a whole generation's attitude toward the financial system can change, Pal took the example of millennials as an example. In his opinion, this generational group will be the most open with changes within the financial system.

The millennial generation have already been marked by the events of 2000 and 2008. They do not trust the financial system […] They will reject what preceded them, and embrace things that are new and different .

In the past, various investigations have indicated that millennials and younger generations continue to gain confidence in assets like Bitcoin , towards which they are more inclined to invest.

Former Goldman Sachs executive invests in Bitcoin

To protect himself from the possible negative effects of the looming global financial crisis due to the coronavirus pandemic, Pal revealed that he is investing a significant portion of his wealth in Bitcoin.

The former Goldman Sachs executive confessed during the program that in the next 12 months he will transfer 25% of his savings to Bitcoin . In addition, it will also diversify its capital. " 25% gold, 25% cash, and 25% business opportunities ," he said.

In the past, Pal has held positive views on cryptocurrencies. In early March, the financial expert published a tweet warning the crisis and suggest saving in gold and Bitcoin . Recently, the author of " Rich Dad, Poor Dad ", Kiyosaki, also made similar recommendations to deal with the looming economic recession