Next financial crisis could be 4 times worse than the $5 trillion dot-com crash

The next global financial crisis is already under way. Here is how it will unfold. The dot-com crash erased $5 trillion in market value. That was a blip compared to what experts now warn is coming. The next crisis could hit four times harder, wiping out as much as $20 trillion. Unlike the dot-com bust, which was limited to technology stocks, this crisis is expected to spread across multiple sectors. Rising interest rates, inflated asset prices, and high corporate debt are creating a fragile foundation. When that foundation cracks, the damage will be broader and deeper. Banks and hedge funds hold large amounts of risky assets. Many of these assets are hard to sell quickly. If panic sets in, a liquidity freeze could follow. That would force fire sales, driving prices down further and triggering a cascade of losses. Central banks have less room to act now. Interest rates are already high in many countries. That limits their ability to cut rates to stimulate the economy. Governments also carry record debt, leaving little budget space for bailouts. The timeline is uncertain. But the warning signs are clear: the next crash may not be a shock. It will be the inevitable result of a system stretched too far.