The world's top financial watchdog and the finance minister of Europe's biggest economy have voiced their concerns over the amount of credit being created in the global financial system.
In separate annoucements, Claudio Borio, chief economist at the Bank for International Settlements (BIS), and German finance minister Wolfgang Schaeuble, both warned of the danger of current debt levels. The Telegraph reported that the Swiss-based BIS said total debt ratios are now significantly higher than they were at the peak of the last credit cycle in 2007, just before the onset of global financial crisis. Referring to the recent rout of financial markets sparked by fears over the strength of the Chinese economy, Borio said: "We are not seeing isolated tremors, but the release of...
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