“Another bigger crisis is inevitable” – Finance Commission
Another crisis – one that will be even worse than the current one – is looming, according to a new report from a group of leading economists, financiers, and former federal regulators. The report warns that the country is now immersed in a “doomsday cycle”.
“What will happen when the next shock hits? We may be nearing the stage where the answer will be – just as it was in the
Great Depression – a calamitous global collapse.”
Frank Partnoy, a panelist from the University of San Diego, claims that “the balance sheets of most Wall Street banks are fiction.”
The Associated Press has officially labelled the economy a “Great Recession.” “It clearly is a shift in everyone’s perception of their financial and economic life,” said Orin Hargraves, a lexicographer. The term seemed to be in such wide use last year and so clearly understood that it was time to make it an official entry, the AP’s Minthorn said.
Economists are preparing for a deluge of commercial loan losses, which could be the trigger for a meltdown. “The COP is “deeply concerned” that commercial real estate losses could jeopardize the stability of these banks and the damage will contribute to prolonged weakness throughout the economy, according to chair Elizabeth Warren. “A big enough wave of commercial mortgage defaults would trigger economic damage that would touch the lives of every American,” Warren said.
