MARKETS
Breadcrumb trail navigation:
By Stephen Roach
Published: May 17 2010 16:40 | Last updated: May 17 2010 16:40
The pace and severity of financial crises has taken an ominous turn for the worse. Over the past 30 years, a crisis has occurred, on average, every three years. Yet, now, only 18 months after the meltdown of late 2008, Europe's sovereign debt crisis has hit with full force. With one crisis seemingly begetting another, and the fuse between crises now getting shorter and shorter, the world economy is on a very treacherous course.
Each crisis has its poster child "“ from Thailand, to dot-com, to subprime. But they all have one thing in common "“ easy money. The "Greenspan put" "“ the notion that central banks would be quick and aggressive in backstopping financial market disruptions "“ was the short-term anaesthetic that repeatedly set the stage for the next crisis.
You have viewed your allowance of free articles. If you wish to view more, click the button below.
Read Full Article »
