Loading ...Paul Krugman, a Nobel-prize winning economist, says that this next financial crisis will be a shock to most because there’s not one clear indicator that would signify an impending crash. He also says many people have a “real amnesia” about an economic crash and the next one “will be worse.”
According to Money And Markets, when surveying the global economy, there is nothing obvious to point to as the next big thing primed to crash the markets. Previously, the housing bubble in 2007 signaled the 2008 recession. But now, we are in an “everything” bubble where global government and private debts are at disastrous levels and the housing bubble continues to get even larger than it was in 2008.
Krugman believes that the nest time the economy tanks, it will be even worse than the recession of 2008. Perhaps the biggest red flag, Krugman says, is selective memory as to why the last crisis happened in the first place, particularly when it comes to shadow banking institutions that look and function like banks but are not regulated like banks. Krugman insists that more government