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Warnings of a looming financial crisis

Former British prime minister Gordon Brown, leader of the United Kingdom during the Lehman Brothers collapse in late 2008 to early 2009, told The Guardian this past September that the world is “sleepwalking into a financial crisis.”

Brown, who lost the 2010 UK election following a severe recession, stated that the big problems of 2009 remain unsolved and tougher actions were needed to prevent misconduct by bankers. “There is going to have to be a severe awakening to the escalation of risks, but we are in a leaderless world,” Brown told The Guardian.

The Guardian reported this past October that the International Monetary Fund (IMF) is also warning
of the possibility of another global financial meltdown. This was because governments and regulators failed to bring forth reforms to protect the world financial system. Global debt levels are well above those that existed at the time of the 2008 crash due in part to lending by China’s so-called shadow banks. Global debt now stands at US $182 trillion, 60 percent higher than a decade ago. ◊