US, WASHINGTON (NEWS OBSERVATORY) — American economist Jesse Colombo said that the world is waiting for a new financial crisis, which may be more significant than the previous one, writes the Independent portal.
According to the publication, Colombo was able to predict the 2008 crisis. Now the analyst points to the existence of the so-called bubbles in the European real estate markets, American stocks and others. They can burst at any time.
Colombo noted that the spread of coronavirus could be the trigger for a new crisis.
“We were already heading for a recession before anyone heard of the coronavirus,” he emphasizes.
The economist believes that the current crisis may be worse than in 2008, since, according to him, the total volume of debt in different segments grew by almost one hundred trillion dollars.
Since the beginning of the week, there has been noticeable volatility in global stock and oil markets amid falling oil prices and the risks surrounding the coronavirus.
On March 9, stock indices dropped by an average of seven to eight percent, and the next day, US exchanges closed at five percent growth, while European markets showed a decline.
Coronavirus remains one of the main risks, since quarantine measures adversely affect many areas of the economy, including transportation and production. The other day, a collapse in the oil market was added to it after the collapse of the OPEC + alliance.
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