Unlike 2008 — which was rooted in irresponsible lending and
Wall Street malpractice — this crisis is being fueled by deliberate political
choices. Tariffs have distorted supply chains, raised input costs, and crippled
export-oriented economies. From Chinese manufacturers to European automakers
and Asian electronics exporters, uncertainty is eroding confidence. Global
trade volumes are shrinking, and markets are reacting nervously.
The irony is striking, while tech giants continue to report
record profits and soaring valuations, this growth stands on a very fragile
foundation. Analysts are calling it a “Tech Bubble”, and not without reason.
When one segment of the market inflates disproportionately banks, small
businesses, and industrial shares come under pressure, it is not growth — it is
imbalance. Traditional sectors are bleeding, consumer demand is weakening, and
yet Big Tech is being priced as if the world economy is booming. This is
speculation masquerading as optimism.
Banks, the backbone of any financial system, are showing
worrying signs. Rising interest rates, tightening liquidity, and increasing
defaults in trade-dependent industries have started to appear on their balance
sheets. Loan growth has slowed, non-performing assets are rising, and
confidence among lenders is eroding. Smaller financial institutions are
especially at risk as their exposure to fragile sectors grows unchecked. This
may not be a sudden collapse like Lehman Brothers — it could be a gradual suffocation,
where trust quietly disappears from the system.
Emerging economies are caught in a chokehold. Currencies are
under pressure, foreign exchange reserves are being depleted to manage imports,
and inflation is creeping upward. For countries dependent on exports or
imported raw materials, Trump-style tariff aggression has become an economic
nightmare. Meanwhile, global institutions like the WTO and IMF remain
spectators — issuing statements rather than solutions.
Markets do not collapse only due to bad economics; they
collapse when confidence dies. Tariff wars, geopolitical brinkmanship, and
speculative bubbles are collectively eroding that confidence. The threat today
is not of a market crash alone — it is of a systemic disintegration of trust,
credit, and cooperation.
The world must realize that economic wars have no winners.
If this tariff-driven arrogance continues, the global economy will not fall off
a cliff — it will slide slowly into chaos. Policymakers still have time to act,
but the clock is ticking fast.
