Five years after the collapse of Lehman Brothers, economists are warning the worst fallout from the global financial crisis is yet to hit Europe and parts of Asia.
He says the economy – and broader society – is yet to recover from the Lehman Brothers collapse.
“Never before in history have we had this [...]
The Swiss-based ‘bank of central banks’ says a hunt for yield is luring investors en masse into high-risk instruments, “a phenomenon reminiscent of exuberance prior to the global financial crisis”.
This is happening just as the US Federal Reserve prepares to wind down stimulus and starts to drain dollar liquidity from global markets, an inflexion [...]
SPIEGEL: Ms. Ghosh, when the global financial crisis broke out in 2008, the demise of the West seemed to be sealed. Now, however, China is suffering from a banking crisis, and in India the situation is even more dramatic. Economic growth has almost halved, and panicking investors [...]
In a society composed of elites commanding the economy with people acting as bricks and materialism acting as mortar, what holds it together when things start faltering? What happens to materialism in a faltering economy?
First, let us see how China is starting to falter:
The Politics of a Slowing China by Minxin Pei – [...]
“The global financial crisis that began in the United States in the summer of 2007 was triggered by a bank run, just like those of 1837, 1857, 1873, 1893, 1907 and 1933.” That’s the theme of Yale economist Gary Gorton’s Misunderstanding Financial Crises, Why We Don’t See Them Coming, published last year [...]
The overhang of debt in Europe and the US has made recovery from the global financial crisis particularly tenuous.
Is there a dramatic and simple way out of all this? Some argue that there is: a “debt jubilee”. Drawn from the Old Testament book of Deuteronomy, the concept derives from the biblical injunction [...]
This raises the question of why Beijing keeps acting this way. Doesn’t it realize that forcing Southeast Asian countries to choose between China and ASEAN is a losing battle? Isn’t its illegal occupation of Scarborough Shoal a daily reminder of China’s willingness to bully the states that claim disputed territory in the South China Sea? [...]
One of the least understood aspects of Russia’s economic policy is how badly the government managed the global financial crisis.
The country had the biggest fiscal stimulus of all G20 countries, of no less than 10 percent of GDP, as the budget balance swung from a surplus of 4 percent of GDP in 2008 to a deficit of 6 percent of GDP in 2009.
This was a sensible Keynesian stimulus, but the outcome was meager. [...]
China’s financial system is not as solid as it seems, and the weakness of the system may result in a serious shock to the global financial system.
However, there may be trouble brewing in East Asia. If China undergoes a serious financial meltdown, the entire globe could enter into a second period of deep [...]
Look around the world and big risks abound. One or more countries may drop out of the eurozone. Violence may spread across the Middle East. The US Congress may yet drive the country off its fiscal cliff and into recession. An island dispute between China and its neighbours may flare up, provoking the US to [...]