Tuesday, December 18, 2018

Geoff Tily - Five reasons why another financial crisis could be looming

The economic forecast has been looking gloomy for some time, but last week the IMF warned that “an economic downturn lurks somewhere over the horizon”.
Unfortunately, while workers have endured a lost decade since the 2008 financial crisis, the economy has not been repaired in that time.
So without decisive action – and soon – there are five reasons why we should fear another global recession.

5. Lessons from 2008 still haven’t been learned

Workers are all too familiar with the disastrous impact that years of austerity have had on growth and wages.
But this has not stopped footloose investors from ploughing capital into emerging economies and trendy global tech and property ventures.
Now, as capital retreats and asset values fall, firms are facing a new round of severe financial pressures that will bear down on costs and ultimately on workers’ pay, conditions and jobs. There are also concerns that pensions are in the firing line, as funds have become seriously exposed to risk.
It all amounts to very little change ten years on from the financial crisis.
The TUC.


Ralph Musgrave said...

Tily says in his 4th last para that “…global action is needed to address the cause of growing debt...” Well one reason for elevated levels of debt is the existing bank system, under which interest rates are artificially low because commercial banks can simply create money out of thin air and lend it out.

As for “global action”, that consists of what? A conclave of bankers and politicians who have been bribed by bankers into not changing the existing bank system? Fat lot of good that’ll do.

Noah Way said...

What the banks learned is that the government won't let them fail.

What the people learned is that both banks and government are corrupt beyond salvation.