Record Government Debt & Low to Negative Interest Rates Challenge Global Financial Stability

Published: May 10, 2019, 11 p.m.

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Market volatility is back.  The roller coaster trade negotiations between the U.S. and China are lurching downward again causing a multi-day market sell-off rivaling declines in December of last year.

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The much bigger question is how stable is the world financial system?  A decade ago in the midst of the global financial crisis, it appeared to be on the brink of destruction.  Massive and unprecedented monetary stimulus by central banks and fiscal stimulus by governments stabilized financial markets and supported banks and businesses. There was a huge unwinding of debt in the financial, corporate and household sectors.

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Fast forward and the U.S. which was the epicenter of the financial crisis has led the world out of it. Since 2009, we have experienced the longest bull market in our history and are just weeks away from setting a record for the longest economic expansion.

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Why then is there a sense of unease?

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Two economic thought leaders assess the still challenged stability of the global financial system. WEALTHTRACK #1547 broadcast on May 10, 2019.

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