Those who pay attention are certainly
aware of the dire warnings of an impending financial crisis. The world is facing a monstrous debt bubble
created by central banks, easy money and emerging markets.
Governments and central banks
risk tipping the world into a fresh financial crisis, the International
Monetary Fund has warned, as it called time on a corporate debt binge in the
developing world.
Emerging market companies have
“over-borrowed” by $3 trillion in the last decade, reflecting a quadrupling of
private sector debt between 2004 and 2014, found the IMF’s Global Financial
Stability Report.
This dangerous over-leveraging now
threatens to unleash a wave of defaults that will imperil an already weak global
economy, said stark findings from the IMF’s twice yearly report.
Couple that with China and
other countries dumping U.S. treasuries on the market doesn’t portend particularly
well for us. I remember the years before
the housing bubble popped. Pollyannaish
financial analysts insisted that there was no end to the good times. Housing prices were going to skyrocket from
here to eternity and beyond. Boy, were
they wrong.
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