Fears of financial APOCALYPSE amid warning over ‘gathering storm’ in global markets

Monday, March 7, 2016
By Paul Martin

MARKET calm has given way to all-out turmoil since the start of the year amid a long brewing financial storm, the Bank for International Settlements has warned (BIS).

By LANA CLEMENTS
Express.co.uk
Mon, Mar 7, 2016

Havoc has been exacerbated over concern central banks have run out of options to fight economic malaise, said the organisation – thought of as the central bank of central banks.

Claudio Borio, head of BIS’ monetary and economic department, said: “Against the backdrop of a long-term, crisis-exacerbated decline in productivity growth, the stock of global debt has continued to rise and the room for policy manoeuvre has continued to narrow – a set of factors that might be termed the ‘ugly three’.”

Mr Borio said high debt levels link the market worries that have been responsible for turmoil this year, including the slowdown in emerging markets, weak oil prices and global productivity, as well as concerns over the health of large banks.

He added: “Put differently, we may not be seeing isolated bolts from the blue, but the signs of a gathering storm that has been building for a long time.”

At the same time, with rates already very low central institutions such as the Bank of England (BoE) have fewer options for fighting economic concerns – and markets have lost faith, stressed Mr Borio.

He said: “The latest turbulence has hammered home the message that central banks have been overburdened for far too long post-crisis, even as fiscal space has been dwindling and structural measures lacking.

“Despite exceptionally easy monetary conditions, in key jurisdictions growth has been disappointing and inflation has remained stubbornly low.

“Market participants have taken notice. And their confidence in central banks’ healing powers has – probably for the first time – been faltering.”

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter