Blowout Coming Soon, Warns a Leading Asian Economist
July 9, (EIRNS)—A leading Asian economist told EIR on Friday that he is convinced that a systemic crash, worse than 2008, is coming in the immediate period ahead. He equated the Brexit vote and the chaos that it has triggered in trans-Atlantic financial markets and major banks with the April 2008 crash of Bear Stearns. For the next six months after the Bear Stearns crisis, the Fed worked seven days a week to forestall a systemic collapse—and they failed. The economist expects some major blowout to come within the same time frame between Bear Stearns and the Lehman Brothers trigger of the meltdown. He noted that there are so many bubbles in the current system, with Deutsche Bank being the single biggest point of vulnerability, that the central banks are, once again, going to fail in whatever desperate measures they choose to try.
The International Monetary Fund this week issued its annual survey of the Eurozone economies, and warned that the Brexit will introduce so much instability that Europe can expect to be in a no-growth situation for the next several years. While the bulk of the study was prepared before the Brexit vote, the IMF added an addendum, downgrading the already negative estimates.