The global financial system seems to be heading towards another major crisis, and it could be worse than in 2008. At that time, the United States’ national debt was below $10 trillion, whereas now it is over 14. In 2008, none of the European countries was on the verge of financial collapse, while today many are.
If the global financial system begins to crumble, the major world governments can not do anywhere near what they did to tackle it last time.
In 2008, the crisis began with declines in shares of major banks, a situation that seems to be repeating itself now. Bank of America reached rock bottom last year, Goldman Sachs and Morgan Stanley are close to the lowest levels of the last 2 years, while Moody's warned that it might be forced to reduce the risk ratings of Bank of America, Citigroup and Wells Fargo. And all three of them are planning or implementing layoffs.
Source: Businessinsider.com
More on this topic
September 2008
This week, the news is about the continued crisis in the US financial sector and its impact on the economic sectors around the world.
At the time of this writing, one of the main investment banks (Morgan Stanley) was about to enter negotiations for its purchase by a Chinese bank.
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