1. Research
  2. Products & Topics
  3. Region
  4. Global

GFC 10 years on - More debt money printing has covered up a debt crisis

September 13, 2018
The 15th September will mark ten years since Lehman Brothers filed for Chapter 11 bankruptcy protection, a cataclysmic event which reverberated throughout financial markets and led to the “Global Financial Crisis“. This laid the foundations for an extraordinary period for central bank activity and therefore financial markets. It’s still not clear if lessons from the GFC have been learned. In our 2017 Long Term Study “The Next Financial Crisis” we argued that the global financial system post Bretton Woods remains vulnerable to financial crises, and their frequency has been higher in this period than across all prior financial history. The GFC was clearly an extreme case and likely a once-in-a-lifetime event. However, in solving this crisis we have added more debt to an already heavily indebted system and our central banks have imposed a decade of extraordinary measures, from which most still struggle to withdraw. [more]

More documents about "International"

141 (85-96)
August 19, 2015
85
Between 2000 and 2014, unit passenger car sales grew by 27.5% in China on average – per year. However, for the past several months there have been signs of the dynamic growth petering out; from May to July 2015 sales were in fact down 1.3% on the corresponding year-earlier level. The average growth of car demand in China is poised to plummet to a single-digit rate in the next few years. This is a step towards "normality". The anticipated slower growth in demand for passenger cars – coupled with growing production capacities in China for the time being – are likely to lead to further intensifying price and competitive pressures in the Chinese market. German makers of premium-segment cars will be unable to escape completely unscathed from the impact of such a trend. [more]
June 18, 2015
Analyst:
87
Industry 4.0 (also known as integrated industry, industrial internet) is currently the subject of intense debate. This megatrend sets out to change the way goods and services are created and distributed, reshaping the industrial landscape on a national and global scale. China intends to play a leading role in this digital evolution. A wide range of policies have been initiated and sizeable progress in various areas has been made. The country is determined to seize the outstanding opportunity at hand, as the recently unveiled “Made in China 2025” plan underlines. China still has a long road ahead. However, with its new plan it combines a long-term vision with concrete actions in the proclaimed “Year of Innovation”. [more]
June 9, 2015
88
The time is ripe for established banks to transform themselves into digital platform-based ecosystems. With their current digital strategies the banks will not achieve the resounding success that will enable them to hold their own in the medium to long term. Not only certain business models, distribution and communication channels, products, services and processes, but especially the ways data are handled need to be rethought and redesigned. Implementing a fundamental reform attuned to the digital age will provide the opportunity for traditional banks to learn and adopt the strengths and particularly the monetarisation strategies (walled gardens) of the successful digital ecosystems. [more]
April 24, 2015
90
There are good reasons to think that the revival in African growth over the last decade has been based on much more than the super cycle in commodities and demand from China. Over the next decade, however, the region’s centre of economic gravity is likely to shift towards the less resource-dependent economies in East Africa. East African countries are economically more diverse and beginning to form a relatively large and well-integrated regional market. Therefore, beyond the likely improvement in their terms of trade, they appear better-placed to deliver the structural economic transformation that will be needed to create jobs for the fast-growing working age population. [more]
November 25, 2014
94
It is fashionable to say Germany is heading down the path of post-bubble Japan. But what if the Japan to worry about is not the deflationary 1990s but the previous decade when golf club memberships swapped hands for millions of dollars? And just as there is a risk investors fail to apply the lessons of a rising sun to Germany, there is a danger that Japan’s post-bubble era is ignored by China and South Korea. [more]
October 9, 2014
95
Since its outbreak in December 2013 in Guinea, the Ebola epidemic in West Africa has resulted in over 3,000 deaths out of 7,000 cases, according to the World Health Organization. The actual figure could be higher since there is evidence of substantial under-reporting of cases and deaths. This outbreak has been spreading considerably faster than previous ones, mostly because it has reached urban areas in Liberia and Sierra Leone. It could spiral to over 500,000 infections, and potentially many more, by the end of January if control measures do not improve, according to the US Centers for Disease Control and Prevention. In contrast to this worst-case scenario, mobilisation by the international community as seen recently and increased education in affected countries could almost end the epidemic. [more]
July 31, 2014
96
The recently announced plans for a free trade agreement between China and the EU are momentous. China is the EU’s No. 1 supplier of goods and its third-largest export market. In turn, the EU is China’s largest trading partner. Going by current trends, EU-China annual bilateral trade could grow close to 1.5 times in a decade’s time. Not only goods but also services trade has large potential to grow. Chinese investment into the EU is still in its infancy but is likely to increase and become more broad-based, covering a wider range of industries and countries across Europe. New dynamism is expected from a bilateral investment agreement currently in negotiation and rising interest of Chinese investors in European companies, as shown by our compilation of Chinese M&A deals vis-à-vis the EU and Germany. Plenty of headroom exists for greater use of RMB in bilateral trade and investment relations. A note of caution concerns the risk of trade disputes which is unlikely to be removed in the near term. [more]
2.1.5