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Next financial crash is coming... and before we've fixed flaws from last one.

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As the US Federal Reserve lays the groundwork for a return to peacetime interest rates, from the emergency levels of the past seven years, financial markets face what the IMF calls an “unprecedented adjustment”... The world looks woefully underprepared.

The IMF’s warning echoes a chorus of others. 

The Bank of England’s chief economist, Andy Haldane, has argued that the world is entering the latest episode of a “three-part crisis trilogy”. 

Unctad, the UN’s trade and development arm, would like to see advanced economies boost public spending to offset the downturn in emerging economies. 

The Bank for International Settlements believes interest rates have been too low for too long, encouraging too much risk-taking in financial markets. All of them fear that the global financial system is primed for a crisis.

The IMF has not given up hope of what it calls a “successful normalisation” – it lays out a series of conditions that would need to be met, from a successful rebalancing of growth in China, to “safeguarding against market illiquidity” in financial markets.

Top Reddit personal finance advice on what the average consumer should do:

Don't sell when it happens. It may seem bad but that is really the only way to guarantee you'll never see your money again. Double down when things seem at their worst, because the economy will either recover and you'll get massive gains, or the USA is well and truly finished and it doesn't matter anyways.

And as /u/compounding says, don't try to game the system by waiting to start investing during a downturn. People have been waiting since 2010 for a sudden turnaround and they may very well be waiting for another five years, by which time their money will have lost a significant amount of value to inflation. The above is just good advice on how to not lose badly. If you sell your assets at the bottom of the inflation your losses become permanent. If you hang on to them there's a chance they can recover and you'll have just had to wait out the recession instead of having to rebuild everything you've earned in the past 30-40 years.

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