William White, former Chief Economist of the Bank for International Settlements has delivered a similar warning about credit excesses as he famously did just...

Livewire
William White, former Chief Economist of the Bank for International Settlements has delivered a similar warning about credit excesses as he famously did just before the GFC. He says investors were being lured into high-risk instruments, a phenomenon reminiscent of exuberance prior to the GFC. All the previous imbalances remain in economies, as total public and private debt levels are 30pc higher as a share of GDP in the advanced economies than they were then, and we have added a whole new problem with bubbles in emerging markets. He believes the world has wasted the last 5 years to solve its economic problems as there will be fall-out for everybody when the US interest rate goes up. In the event of another financial crisis, White says he doesn't know what they will do: Abenomics for the world I suppose, but this is the last refuge of the scoundrel (VIEW LINK)
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.

3 topics

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
Expertise
No areas of expertise
Please sign in to comment on this wire.