Yet a Chinese crash might make 2008 look like a garden party. As the risks of one increase, it’s worth exploring how it might look. After all, China is now the world’s biggest trading nation, the second-biggest economy and holder of some $4 trillion of foreign-currency reserves. If China does experience a true credit crisis, [...]
The world economy is just as vulnerable to a financial crisis as it was in 2007, with the added danger that debt ratios are now far higher and emerging markets have been drawn into the fire as well, the Bank for International Settlements has warned.
Jaime Caruana, head of the Swiss-based financial watchdog, said investors [...]
Now imagine the world of the central scenario: Los Angeles and Detroit look like Manila – abject slums alongside guarded skyscrapers; the UK workforce is a mixture of old white people and newly arrived young migrants; the middle-income job has all but disappeared. If born in 2014, then by 2060 you are either a 45-year-old [...]
Today, we’re seeing asymmetric warfare play out by the book in Russia. As recently as last week, Putin advisor Sergey Glazyev stated the need for an anti-dollar alliance to counter perceived American aggression around the globe.
It is no secret that the United States is still the premier military superpower in the world. However, [...]
Arturo Bris, Professor of Finance at IMD Business School and Director of the World Competitiveness Center, predicts that a global economic crisis is likely and that not enough action is being taken to avoid it. Based on statistics, he said the world could expect a financial crisis as soon as April [...]
Forces that caused the world economy to collapse, including income inequality and debt, are again in action, and could drag corporations down in their wake
Our macro models at the Levy Economics Institute are showing that the US economy is about to face a repeat of pre-crisis-style, debt-led growth, based on increased borrowing. Falling [...]
China’s home buyers are being offered no-money-down purchases in an echo of the subprime lending that triggered a U.S. economic meltdown and the global financial crisis.
Deals skirting government requirements for minimum 30 percent down payments have emerged this year from Guangzhou and Shenzhen in the south to Beijing in the north as [...]
Growth in China, the world’s second-largest economy, is forecast to slow to 7.6 percent this year and 7.5 percent in 2015, with the rebalancing process remaining “slow and volatile.”
However, the bank warned that a sharper than expected slowdown in China driven by a slump in property prices and “disorderly deleveraging” could [...]
The International Monetary Fund has urged policymakers to act now against a growing global housing bubble and warned that inaction could lead to another crisis.
House prices have recovered across the world in the years since the start of the global financial crisis, but some commentators have expressed concern that the market is starting to [...]
The terrible irony in the official strategy of “buying time so the financial system can heal itself” is the policies prohibit healing and guarantee the next financial crisis will be greater in magnitude than the last one.
There is only one way for any financial system to [...]