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

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)