Bank of England Governor Sir Mervyn King summarized the growing sentiment out there yesterday saying, “The world is facing the worst financial crisis since at least the 1930s, if not ever.”
This quote may be 'over the top' but it is worth pondering. The continuing saga of unsustainable leverage will provide us with volatile economic theater over the coming years. And in this age of media hype market volatility should create a never ending source of drama to entertain us.
I was asked a question yesterday about what I thought was the next 'black swan' to effect our economy - my response was the credit stress created by unsustainable levels of leverage. Even though this is an 'ongoing issue' there always comes a time when the train stops (financial crisis) and all those who are still on board end up paying the price.
This quote may be 'over the top' but it is worth pondering. The continuing saga of unsustainable leverage will provide us with volatile economic theater over the coming years. And in this age of media hype market volatility should create a never ending source of drama to entertain us.
I was asked a question yesterday about what I thought was the next 'black swan' to effect our economy - my response was the credit stress created by unsustainable levels of leverage. Even though this is an 'ongoing issue' there always comes a time when the train stops (financial crisis) and all those who are still on board end up paying the price.
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