Source: South China Morning Post —
Central banks are raising interest rates to quell inflation, China’s real estate market is imploding and public debt is at record levels worldwide. Could the maelstrom that is building turn into another global financial crisis to rival the one that started in 2007, which at the time was the worst since the Great Depression?
The bandwagon is filling fast, with many warning that the likelihood of disaster increases daily. The Asian Development Bank says “several downside risks loom large”, notably “a deeper-than-expected deceleration” in China.
Nouriel Roubini, who is credited with predicting the global financial crisis, has an even bleaker outlook. He sees a “hard landing”, beginning by the end of the year, with a “long and ugly” recession. Meanwhile, fund managers scurry to lower their forecasts for investment returns.
