MARKKET24

Some market observers predict a global financial crisis in 2016–’17 — one just as serious, if not more so, than that of 2008–’09. With excess liquidity sloshing around global markets and Brazil, China and various commodity exporters experiencing economic turmoil, the stage is being set for another crisis. Last weekend the International Monetary Fund made its second cut to global growth forecasts this year. Many economic commentators have begun asking what would happen if the next recession hit while interest rates were still far below pre-2008 levels. Despite these issues, the regulatory foundations built over the past eight years are resilient, and an economic crisis — if it does occur — will not stem from the same causes as those of the late-2000s recession. Indeed, securitization and private sector debt have decreased since 2008. And although public debt ratios are high, very low interest rates offset much of the risk. What’s more, there is no bubble in the stock markets or...