{"id":25559,"date":"2017-09-13T06:27:42","date_gmt":"2017-09-13T11:27:42","guid":{"rendered":"http:\/\/olduvai.ca\/?p=25559"},"modified":"2017-09-13T06:27:42","modified_gmt":"2017-09-13T11:27:42","slug":"former-bis-chief-economist-warns-more-dangers-now-than-in-2007","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=25559","title":{"rendered":"Former BIS Chief Economist Warns &#8220;More Dangers Now Than In 2007&#8221;"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2017-09-12\/former-bis-chief-economist-warns-more-dangers-now-2007\">Former BIS Chief Economist Warns &#8220;More Dangers Now Than In 2007&#8221;<\/a><\/h3>\n<section class=\"messages-holder\"><\/section>\n<section class=\"node node-type-story node-full node-nid-603343\">\n<div class=\"sub-title-box\"><\/div>\n<div class=\"content\">\n<p>Having <a href=\"http:\/\/www.zerohedge.com\/news\/2014-12-19\/former-bis-chief-economist-system-dangerously-unanchored-it-every-man-himself\">warned <\/a>in the past that <strong><em>&#8220;the system is dangerously unacnhored,&#8221;<\/em><\/strong> former chief economist of the Bank for International Settlements, William White, told Bloomberg TV overnight that the current situation <em><strong>&#8220;looks very similar to 2008,&#8221; <\/strong><\/em>adding that <strong>OECD sees &#8220;more dangers&#8221; today than in 2007.<\/strong><\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2017\/09\/10\/20170912_white.jpg\"><em><strong><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2017\/09\/10\/20170912_white_0.jpg\" alt=\"\" \/><\/strong><\/em><\/a><\/p>\n<p>The chairman of Economic and Development Review Committee at OECD, warned that prices are very high &#8211; in particular for high yield assets, VIX is very low, house prices are rising strongly, equity markets rising, <strong>and all these are a source of concern<\/strong>.<\/p>\n<p><iframe loading=\"lazy\" src=\"http:\/\/www.bloomberg.com\/multimedia\/api\/embed\/iframe?id=1d91aad9-098b-446a-85ed-31cdd01e6ea9\" width=\"560\" height=\"315\" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p>Additionally, White noted:<\/p>\n<ul>\n<li><strong>India\u2019s debt problems go back a long way,<\/strong> and there are significant governance issues, including at state-owned banks.<\/li>\n<li><strong>China\u2019s debt situation isn\u2019t a lot different to India\u2019s<\/strong>, but the acceleration of loans and credit growth in China is very fast<\/li>\n<li><strong>It\u2019s not just the debt level in China that is worrisome, but the speed that it\u2019s accumulating;<\/strong> maybe some of these loans won\u2019t be repaid or serviced.<\/li>\n<li><u><strong>We don\u2019t have a liquidity problem that central banks can solve<\/strong><\/u> &#8211; if we have too much debt, <strong>we have a debt resolution or insolvency problem and only governments can address problems like that.<\/strong><\/li>\n<li>World needs more fiscal expansion, structural reforms, and <strong>also have to look closely at debt write-off <\/strong>some of it and maybe recapitalize financial institutions.<\/li>\n<li><strong>We have got the mix of income that goes to capital versus labor wrong in many countries,<\/strong> and we need to look at that.<\/li>\n<li><strong>Central bank tightening is inevitable, but have to be careful.<\/strong><\/li>\n<\/ul>\n<div id=\"el_288228281\" class=\"hidden\" data-google-query-id=\"CJrYmM6GotYCFWipUQod_xANFA\">\n<div id=\"google_ads_iframe_\/5206\/invc.zerohedge\/economics_news_3__container__\">As White concluded previously,<\/div>\n<\/div>\n<blockquote>\n<p class=\"excl\"><strong><em>&#8220;it is every man for himself. And we do not know what the long-term consequences of this will be,&#8221;<\/em><\/strong><\/p>\n<\/blockquote>\n<p>and it appears to be getting worse.<\/p>\n<\/div>\n<div class=\"node-links\"><\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Former BIS Chief Economist Warns &#8220;More Dangers Now Than In 2007&#8221; Having warned in the past that &#8220;the system is dangerously unacnhored,&#8221; former chief economist of the Bank for International Settlements, William White, told Bloomberg TV overnight that the current situation &#8220;looks very similar to 2008,&#8221; adding that OECD sees &#8220;more dangers&#8221; today than in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1733,1269,83,195,2164,690,1141,11873,4318],"class_list":["post-25559","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-for-international-settlements","tag-bis","tag-bloomberg","tag-debt","tag-oecd","tag-risk","tag-vix","tag-william-white","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25559"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25559\/revisions"}],"predecessor-version":[{"id":25560,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25559\/revisions\/25560"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}