- Ex-European Central Bank Chief Warns of Possible New Global Financial Crisis
Europe’s top central banker during the 2008 financial crisis outlined that the current premises could create the same meltdown as ten years ago.
Jean-Claude Trichet, who ran the European Central Bank between 2003 and 2011, told AFP in an interview that the amount of debt accumulated in the current financial market made the world’s financial system as vulnerable as it was 10 years ago.
“The growth in debt, especially private debt, in advanced countries has slowed, but this slowdown has been offset by an acceleration of emerging country debt,” said Trichet, noting that this situation could be even more devastating than the financial crisis of 2008.
He also outlined that there is now agreement that the excessive debt level in the advanced economies was a key factor that triggered a global crisis in 2007 and 2008, thus this is the vulnerability of the markets that could potentially trigger a new economic meltdown.