Sunday, March 06, 2016

BANK OF INTERNATIONAL SETTLEMENTS ISSUES DARK WARNING

The BIS has issued a dark warning over the world economy.

Read the whole of the article:
The world’s credit boom is beginning to show dangerous signs of unraveling, ushering in a period of fresh turmoil for the over-indebted world economy, the Bank of International Settlements has warned.

The globe’s top financial watchdog called time on the world’s debt binge, noting that debt issuance and cross border flows in emerging economies slowed for the first time since the aftermath of the global credit crunch at the end of last year.

...This provided a “telltale” sign that the financial conditions were reaching an inflection point, accompanied by large depreciations in emerging market currencies and slowing domestic growth.

“It is as if two waves with different frequencies came together to form a bigger and more destructive one”, said Mr Borio.

[source : Debtor days are over as BIS calls time on world credit binge, Daily Telegraph, http://www.telegraph.co.uk/business/2016/03/04/debtor-days-are-over-as-bis-calls-time-on-world-credit-binge/, 6th March 2016]

Looking like 2008 times a thousand!

And the introduction of a global bail-in, i.e. a bailout of the banks by us, the muggins good citizens.

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