The IMF Deputy Managing Director David Lipton has given the most concerning warning to the largest countries in the world.
“The next recession is somewhere over the horizon, and we are less prepared to deal with that than we should be , and less prepared than in the last crisis in 2008,” Lipton told the Financial Times .
Many believe that we never fully recovered from the recession of 2008 and have just been drifting along on borrowed time. With ludicrous amounts of QE being pumped into circulation, the global economies days were always numbered.
A global slow down could be seen as a much needed correction. The stock market and house prices in the richest countries are in serious bubbles, which cannot continue to get any bigger.
The real problem with the next crash is that all the aces were played in 2008. Governments and the banks used interest rates and QE to help the economy kickstart itself. With global interest rates at such low levels, there is no more room left for a reduction in rates.
You can read more at Financial Times.