Extreme forms of credit excess across the world have reached or surpassed levels seen shortly before the Lehman crisis five years ago, the Bank for International Settlements has warned. “This looks like to me like 2007 all over again, but even worse,” says William White, the BIS’s former chief economist. “All the previous imbalances are still there. Total public and private debt levels are 30% 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 that are ending in a boom-bust cycle.”
Posted on: Tue, 17 Sep 2013 12:32:02 +0000