The Finance Foundation
Reinventing capitalism for all
President of the Finance Foundation

2018! Another recession? Another debt bubble? All feet on the brakes
January 07, 2018 , Michel Gabrysiak - Financial Markets



                In 2008 the collapse of sky high prices for housing and other assets triggered the worlds worst financial crisis in the post war period. It got a name: The Great Recession. No one on the planet saw it coming. 

                The New York Times is asking a very dramatic question: Are we about to make the same mistake? Is the world getting into a giant recession? 

                Asset prices are rising like mad. There is a bubble, no doubt. 

                The greatest expert of them all, former chairman of the Federal Reserve Allan Greenspan, warned us again that central banks have created a huge bond bubble with interest rates very, very low. 

                Bonds, stock market values, housing are all running up. Debt that is high yield and emerging market corporate debt are up in the sky. Central banks want to reduce the record; countries’ debt does not seem to be controllable. Brazil, China live on debt and it is out of proportion with their economy. 

                The most recent tax reduction president Tramp introduced goes in the same direction. 

                If you accept to consider this as one side of the coin, and turn the coin over, you have another side which is the growing inequality  in very developed nations and in all fast-emerging nations. 

                The numbers which are flowing around are amazing. 0.1% of global population owns as much as 50% of that population. 

                No doubt there is something wrong in the kingdom under the sky. 



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