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Bernanke identifies greatest threat to global economy
Ben Bernanke knows a few things about financial crises. As US Fed chairman he had to cope with the 2008 credit crunch and subsequent economic meltdown.
In a fireside chat with veteran journalist Andrew Neil hosted by The Spectator on October 27 he warned that although most indicators don’t suggest the world is approaching another recession, “emerging markets are the most meaningful financial risk at the moment.”
A consensus is rapidly building that the dollar debt amassed by some emerging countries during six years of low interest rates is a disaster waiting to spread contagion throughout the financial system. A few weeks ago the IMF waved the same red flag and the credit rating agencies have expressed the same fear.
So the chances are that if there is a crisis, then it is going to be caused by something else entirely.
Photo: Insider Monkey