Realistically Worst-Case Great Recession of 2008

As bad as the 2008 crisis was at least it never went the way of the Great Depression. But how bad could've it gotten? What ways could this situation would've hit the worst level possible and what would be the effects?
 
As bad as the 2008 crisis was at least it never went the way of the Great Depression. But how bad could've it gotten? What ways could this situation would've hit the worst level possible and what would be the effects?

China's economy completely crashes, causing a world wide panic and depression.

America enters another "great" depression and falls from grace. All US military personnel are sent back home and the U.S. slashes its military budget like mad.

EU will probably collapse or stick together. Its either or.

Russia total collapses. Putin is most likely kicked out of office because he'll take the heat for the Russian economic collapse. If they're sanctioned, its gg Russia.

China might have a revolution. It's certainly plausible because the government won't be able to provide for the people. If the economy collapses= higher taxes and no government benefits. We might see another Tianamen Square happening, except on a country-wide revolt.

North Korea is done. Without economic support from China or the west, the people will starve and the regime will definitely collapse.

South Korea and Japan rip because they're export-reliant countries.

Rip to Africa.

Middle East will be all trigger happy against Israel after America leaves. ISIS might never rise because the U.S. is just simply gone and there's more problems to take care of...

Good game Saudi Arabia and Israel.
 
As bad as the 2008 crisis was at least it never went the way of the Great Depression. But how bad could've it gotten? What ways could this situation would've hit the worst level possible and what would be the effects?

What would a new great depression mean ?

It would mean that the most debt-inflated countries and the most exports-dependant countries would suffer more.

The dollar would crash and the US would have a very bas time : back to pre-1914 world.

Germany, South Korea and Japan would severely crash.

China would certainly suffer but such a crisis would lead her to hasten transition towards domestic consumption instead of exports.

And more globally, the crash would lead to a massive debt write-off which would bring western debt-inflated economies to their real standards, which means their share in world economy would be substantially lighter.
 
Government intervention in the banking sector fails to rally the markets as OTL and major retail banks across the globe are allowed to collapse as its too expensive to save them all. This brings misery to savers who loose most of their money. All credit becomes much harder to come by (than the OTL crunch) which forces poorly organised economies like Greece to exit the Euro and default. This starts the much feared contagion from OTL as larger economies including Spain, Italy and France get sucked into a sovereign debt death vortex and are forced to default. A critical mass is reached as most of the G20 default and a choice has to be made.

Let it burn and reboot with more robust international controls (very hard to achieve as everyone will spend a lot of time blaming each other for the mess) or just let it burn as nations descend into anarchy, wars are fought to obtain resources and a new dark age is unleashed upon the earth.
 
My $ 1,308 after tax monthly retirement pay for military Reserve service would seem like a magnificent sum compared to the collapsed incomes of my peers.
 
If price deflation gets bad enough coins might again have some utility in the economy. As prices sink to 1954, or even 1914 levels folks would be paying for their essentials with pocket change again. With much of the banking system in chaos use of credit & credit cards, & even checking accounts will decline. Many people in first world nations will return to having the meager savings in a desk drawer, kitchen cabinet, or under a mattress.
 
Global fiat collapse, like what should have happened.

And afterwards fiat rises again either through the Euro or the Yen or the Yuan, simply because in any growing economy you need more money in circulation (otherwise the people hoarding money get increased real purchasing power simply by doing nothing -- you aren't one of those free loaders who think people should get more power just by doing no work and hoarding money, are you?)
 
Slow response by The American government causes the recessions to get worse. A deeper slump in consumer spending followed by an Asian market collapse forces China into its own recession...something that the government is unable to handle... A recession in the two largest economies destroys the world economic system as money is hoarded by large corporations and individuals alike.

Arab spring happens in 2010 except more violent than otl... A caliphate or series of Islamist organizations take control of vast swaths of territory in Saudi Arabia, Jordan, Syria, Egypt, lebanon, Yemen, Nigeria, Iraq... the American troops in Iraq become warlords as the Iraqi government collapses around them...they become defacto allies with Iranian forces in the region.

The oil crunch caused by the middle eastern wars eliminates the Japanese and Korean economies from the world stage... The Japanese government nationalizes Sony, Toyota, Honda to focus on the production of electric trucks.

Apple goes out of business...GM is nationalized...Silicon valley is practically bankrupt.

Pakistan, Burma, Sri Lanka, and Nepal collapse...loose nukes flood Asia.
Israelis, Palestinians, and Islamists fight a 3 sided war.
Mexico is squeezed by revolutionaries and drug cartels...American PMCs are hired by northern Mexican states to keep the peace...a move that worries Mexican Feds.

Africa devolves into complete shit...including South Africa and Nigeria.

Refugees from Africa and the Middle East pour into unwelcoming Europe where right wing extremists now control major government positions.

It probably takes 20-30 years to get back to normal. The only winner is probably Russia which is able to get rich off of oil exports to Europe.
 
The Arab Spring is even larger than OTL because the global costs of living like food and fuel will rise dramatically. The revolutions will probably be even more violent and widespread.

The US will not give the resources to do armed strikes in Iraq and Syria, not will Russia and many other countries at minimum due to the political climate during the crisis. ISIS or another radical armed group will overrun Iraq and other parts of the Middle East. Iran and other nations will have to invade and use ground forces to resolve the crisis. It'll seem like the Middle East is constantly under war.

America may also shut down many of its overseas bases slowly over time as it downsizes.
 
Honestly it could have wiped out the EU, China and U.S. economically if the panic in September and October wasn't arrested.

Worst case scenario is total economic collapse followed by demagogues on the streets saying the solution is killing class enemies or race enemies and taking their shit.

See Greece circa 2013 on steroids.

Armies start moving around the world to secure land and resources within a decade of the collapse.
 
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President Sarah Palin

That would be a total disaster. However, that's nearly impossible.

Perhaps this could work if the recession is delayed. Then McCain may be elected, he dies from a bullet, and Palin ascends to the presidency.

President Bernie Sanders

That wouldn't be a disaster at all. His policies are based upon policies that have worked in the past, although they would be pretty radical for the US (Put large amounts of money in the economy, give people jobs). I think such policies based upon logic and common sense would work pretty well.
 
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