'WORSE THAN 2007'

[marmar]

'WORSE THAN 2007': Top banker warns of looming wave of worldwide bankruptcies


The world’s financial system has become dangerously unstable and faces an avalanche of bankruptcies that will test social and political stability, according to a leading global banker.

William White, chairman of the OECD’s review committee and former chief economist of the Bank for International Settlements, who suggests the stresses in the financial system are now "worse than it was in 2007."

Speaking to the UK Telegraph’s Ambrose Evans-Pritchard before the start of the World Economic Forum in Davos, White warned that macroeconomic ammunition to fight further economic downturns is essentially “all used up”.

“Debts have continued to build up over the last eight years and they have reached such levels in every part of the world that they have become a potent cause for mischief,” he told the Telegraph.

“It will become obvious in the next recession that many of these debts will never be serviced or repaid, and this will be uncomfortable for a lot of people who think they own assets that are worth something.” .................(more)

http://www.businessinsider.com/top-banker-warns-of-worldwide-bankruptcies-2016-1

[PatrickforO]

1. The bankers themselves might be positioning us all for a giant

global debt jubilee.

What say we repeal the Federal Reserve's charter and nationalize the central bank? Because the national debt...it's money we owe ourselves. Why in the hell are we instead paying back bankers with interest???



I think this calls for a rearranging of the deck chairs...

[grasswire]

2. Ambrose Evans Pritchard is mentioned

wasn't he part of Hillary's Vast Right Wing Conspiracy? Something just triggered that in my mind.

[Proserpina]

3. I don't think so

He's a level-headed student of economics. Not a nutcase. She just didn't like what he was saying. Probably still doesn't.

[grasswire]

4. I googled

https://en.wikipedia.org/wiki/The_Secret_Life_of_Bill_Clinton

[Proserpina]

5. So, you are against investigative journalists as a class

if they investigate your "heroes"?

[grasswire]

7. First, Hillary is not my hero. Not at all.

Second, there really was a conspiracy to ruin the Clintons then. I, in fact, defended them on the internet for a couple of years, vigorously. I just happened to recall that name from the Clinton wars.

[draa]

6. We have a major problem looming here with the oil industry.

Economists predict we could see $10 a barrel before long. If it drops to that point mass bankruptcies will happen (already under way and picking up steam) and the oil boom we've experienced over the past few years, which has $2T in liabilities, could collapsed the way the housing boom did in 2007.

I'm not sure how much the major banks are worth but they've also got more liability than market value of the bank itself. We could see another bailout unless something is done to prevent it soon. Couple that with a oil industry collapse then you've got major problems that could hurt a lot of families again.