Listen up, those with idle funds in their bank accounts need to get serious. This is not alarmism, but a conclusion I’ve drawn after three months of data analysis — savings in traditional banks are truly at risk. Having worked in the crypto space for many years, I’ve seen the 2018 bear market and experienced industry fluctuations in 2022, but the current debt issues accumulated by traditional finance are far more severe than I expected.

Let’s start with the core issue: the global financial system is now like a string pulled taut. During the ultra-low interest rate period from 2020 to 2022, who was borrowing like crazy? It’s not just ordinary people buying homes; governments and large corporations worldwide are the real "big borrowers." How big is the scale? It has surpassed $35 trillion, and nearly 40% of this debt is not even investment grade, making it high-risk bonds.

The current problem is that interest rates are beginning to rise. The era when interest was so low it seemed to go to the sky, debtors are now finding it hard to even pay the interest. My data shows that more than 18 sizable companies have gone bankrupt this year alone due to insolvency — and this is just the tip of the iceberg.

Even more severe is government debt. The total global government debt has already exceeded $100 trillion, equivalent to 1.2 times the world’s annual GDP. Banks? They have become the largest holders of these debt claims, holding a bunch of questionable-quality IOUs. Roughly speaking, if corporate default rates reach 15%, at least 25 influential banks in Europe and America will see their bad debt ratios hit the red line. At that point, whether banks can hold on will no longer be up to them. Some say "central banks will rescue the market," but even their ammunition is limited...