Larry Summers Warns We Could Be at the ‘Most Dangerous Financial Moment’ Since 2009
- Larry Summers Warns We Could Be at the ‘Most Dangerous Financial Moment’ Since 2009
by Silvia Amaro@SILVIA_AMARO, https://www.cnbc.com/
* Summers says “markets are now suggesting the highest risk of recession since 2011.”
* The Dow ended more than 700 points lower and investors flocked to safe havens on Monday.
* Gold is hovering around a six-year peak and bond prices continue to fall.
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The escalating trade war between the U.S. and China is potentially creating “the most dangerous financial moment” since the global crash at the end of the last decade, former Treasury Secretary Larry Summers said.
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Markets have been on sell-off mode since last week, with Wall Street seeing its worst trading day this year on Monday. There are deep concerns about the heightened tension in the relationship between the U.S. and China, after President Donald Trump said he would slap new tariffs on Chinese goods and the Treasury Department declared Monday that Beijing is manipulating its currency. The Dow ended more than 700 points lower and investors flocked to safe havens on Monday, including gold and bonds. The precious metal is hovering around a six-year peak and bond prices continue to fall.
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“We may well be at the most dangerous financial moment since the 2009 Financial Crisis with current developments between the U.S. and China,” Summers, who was Treasury secretary under former President Bill Clinton and an economic advisor to former President Barack Obama, said on Twitter late Monday. The global financial crisis, which began in 2008, became the worst economic disaster since the Great Depression.
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We may well be at the most dangerous financial moment since the 2009 Financial Crisis with current developments between the US and China.
— Lawrence H. Summers (@LHSummers) August 5, 2019
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