Tuesday, July 15, 2014
"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." Does anyone disagree that more debt has been created in the world economy in the last 6 years and it was risky debt that created the crisis in the first place that led to to the great recession? If in agreement, then predicting the future really boils down into two camps: Camp 1, That feel that the solution to fight debt with debt is working and that's the new model for the future and it can go in indefinately. Camp 2. That believe that the easy money, bubble stoking has merely created an even bigger problem for the future.