Author Topic: BIS warning that conditions are similar to those before the crisis.  (Read 242 times)

Mackin USA

  • Inner Core
  • Hero Member
  • *
  • Posts: 2038
  • Affiliate Manager :-)
    • View Profile
Investors are ignoring warning signs that financial markets could be overheating and consumer debts are rising to unsustainable levels, the global body for central banks has warned in its quarterly financial health check. The Bank for International Settlements (BIS) said the situation in the global economy was similar to the pre-2008 crash era when investors, seeking high returns, borrowed heavily to invest in risky assets, despite moves by central banks to tighten access to credit.

The BIS was one of the few organisations to warn during 2006 and 2007 about the unstable levels of bank lending on risky assets such as the US subprime mortgages that eventually led to the Lehman Brothers crash and the financial crisis.

http://www.zerohedge.com/news/2017-12-04/bis-warns-frothy-valuations-and-how-central-bank-tightening-paradoxically-leads-easi
Mr. Mackin
MikeMackin@affiliatemanager.com