Community | June 26, 2008 | 11 comments

BIS warns of Great Depression dangers from credit spree

source: http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/25/cncredit125.xml

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Hawkmang
The Bank for International Settlements, the world's most prestigious financial body, has warned that years of loose monetary policy has fuelled a dangerous credit bubble, leaving the global economy more vulnerable to another 1930s-style slump than generally understood.

"Virtually nobody foresaw the Great Depression of the 1930s, or the crises which affected Japan and southeast Asia in the early and late 1990s. In fact, each downturn was preceded by a period of non-inflationary growth exuberant enough to lead many commentators to suggest that a 'new era' had arrived", said the bank.

The BIS, the ultimate bank of central bankers, pointed to a confluence a worrying signs, citing mass issuance of new-fangled credit instruments, soaring levels of household debt, extreme appetite for risk shown by investors, and entrenched imbalances in the world currency system.
(End of excerpt)

Full story at link by Ambrose Evans-Pritchard// Telegraph

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11 comments // BIS warns of Great Depression dangers from credit spree

  • Juas
  • Amber_LaStrega
    • 0
      Amber_LaStrega  

    • "It's coming. The NEO-CONS really fu(&ed up our country and the world."

      It's gonna take all of us, helping one another, to pull outta this shit-mire.

      Help your neighbors, help where you can. I make a pretty good living, yet I'm struggling. I give when and where I can. We will survive as Americans. It's time to take back the country.

    • 3 years ago
  • BentFranklin
  • Hawkmang
  • PoisonTheMonkey
  • Bank_of_trees
    • 0
      Bank_of_trees  

    • If we (Americans) would stop trying to do the opposte of what works we might last a little longer with out this happening. Lets see Europeans use trains and have $9+ a gallon of gas and we don't a bitch about $4. and have no trains. What works?

    • 3 years ago
  • pirho338
    • 0
      pirho338  

    • what? you mean credit cards and our concept of credit and the importance we place on them are in fact hindering us? WHAT?! THATS FUCKING CRAZY! WHO WOULDA THUNK IT?!

    • 3 years ago
  • Angry_Patriot89
    • 0
      Angry_Patriot89  

    • The land for the rich and by the rich. Well ain't that a b****
      And all our fellow working class citizens who have and are being swindled everyday see it more fit to watch the idiot box and the so called "reality" they put on it.

      VOX IN NUMERUS!

    • 3 years ago
  • plusaf
  • pirho338
  • Robroy1
    • 0
      Robroy1  

    • As I watch the people on Bllomberg TV, CNBC , CNN, all smiling as they deliver the latest financil data. How bad can it get before these ass kissing idiots tell their boss we can't sit here with a smiling face while trying to tell people things are great while our economy and the economy of the world is in the worst shape it has ever been in, thanks to evil and greedy Bush and his greedy oil Arab buddies.

    • 3 years ago
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