Another financial crisis?

Former prime minister Gordon Brown sounded a warning

Reuters

Fed's Yellen expects no new financial crisis in 'our lifetimes'

LONDON (Reuters) - U.S. Federal Reserve Chair Janet Yellen said on Tuesday that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash.

"Would I say there will never, ever be another financial crisis?" Yellen said at a question-and-answer event in London.

"You know probably that would be going too far but I do think we're much safer and I hope that it will not be in our lifetimes and I don't believe it will be," she said.

Read Full Article
Download Perspecs
Perspecs

Is the world heading for another financial crisis?

By Joe Harker

Gordon Brown, former prime minister of the UK, has warned that the world is "in danger of sleepwalking" into another financial crisis 10 years after the last one. He suggested that the current economic cycle is at the point where people start taking more risks and warned of "problems in emerging markets".

The previous financial collapse occurred when Brown was prime minister and it tarnished his legacy. Some believe that he never received enough credit for softening the effects of the crash while others blame him for lightening regulation on the financial sector during his time as chancellor.

Bank of England governor Mark Carney listed four big issues the world economy was facing that could cause another crash. The main issue he saw was China, who are providing a huge amount of growth for the global economy. Carney believes that China's financial sector has developed very quickly and is making many of the assumptions that were common before 2008.

After the last financial crash China was able to provide financial stimulus to other countries, though Brown doubts that such a thing would be possible now due to the trade war initiated by the US. He also spoke about the new challenges facing the world that could prevent international cooperation. He said: "Countries have retreated into nationalist silos and that has brought us protectionism and populism.

"Problems that are global as well as national and local are not being addressed. Countries are at war with each other on trade, climate change and nuclear proliferation."

Microsoft founder Bill Gates said it was a "certainty" that the world economy would suffer another financial crisis. Gates said he did not know when the next crash would occur but warned that it would happen at some point.

The world is not ready for another financial crash 10 years after the last one. Many institutions are still in recovery mode. Lower rates of interest implemented as a reaction to the 2008 crash are still in place, meaning that another crash cannot prompt such drastic measures to ensure the damage is limited.

Janet Yellen, former chair of the US Federal Reserve, believes that banks are much stronger now and doubts the chances of another financial crisis "in our lifetime". She insisted that lessons had been learned from 2008 and the world would not collapse into another financial disaster.

Download Perspecs
economictimes

World sleepwalking towards another financial crisis, warns former UK PM Gordon Brown

Former British Prime Minister Gordon Brown warned that the world is on the verge of sleepwalking into another financial crisis because governments have failed to tackle the causes of the last major financial crash a decade ago.

Britain's leader when the collapse of the US investment bank Lehman Brothers triggered the worst financial crisis since the Great Depression said the world is leaderless and was now entering a period of vulnerability.

Read Full Article
Download Perspecs