Warning SECOND global financial crash coming: World facing ‘economic ARMAGEDDON’
A LEADING expert has shockingly claimed a new global financial crash is on the horizon – and an “economic armageddon” is unavoidable.
By Charlotte Ikonen
DailyStar.co.uk
22nd October 2018
Dr John Llewellyn, the former chief economist of failed US investment bank Lehman Brothers, argued economic conditions which could spark a fresh crash were now “not only serious, but intensifying”.
A summary of comments made by Dr Llewellyn at a financial forum last month, which were published on financial website Money Show this month, revealed the current financial system was set up to encourage banks and financiers to take the very risks that could prompt a collapse.
“Markets run on greed. While greed cannot be eradicated, it can be discouraged.
“But few financiers have been fined, and almost none have been jailed.
“Incentives remain unduly skewed towards risk-taking,” Dr Llewellyn said.
“Banks are now better capitalised, but still not sufficiently sound.
“Banks in Europe can still hold their own national sovereign debt without reserving any capital against it, sustaining the latent ‘doom loop’ between them and often barely-solvent sovereigns.
“Banks also still have too much latitude to use internal models to set their own risk-asset provisioning.”
The last global crash in 2008 was the worst financial period since the Great Depression following the stock market crash of 1929.
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