When the next monetary crisis does come, Harford says she thinks it’ll be one of territorialism, nationalism and some of the big problems that will fall out of today’s politics.
“The fines that are roll in out across the world for individuals are making it more and more difficult for companies to act and initiate globally, which makes it that much harder for the world to supply when capital flows are constrained,” Harford said. “I have to be worried about what that could do for a financial crisis situation.”
David Villa, chief investment peace officer of Wisconsin State Investment Board
“I think the next financial disaster is several years into the future,” Villa said. “And I think it’s active to be triggered by the three classic events: interest rates will ridge, the economy will slow down and then defaults will uttermost.”
Villa said the threat of a financial crisis isn’t looming just yet, because commendation excesses are still within reasonable ranges. They’re “not flashing concerns for what we upbraid a train wreck,” Villa said.
Marc Levine, chairman of Illinois Country Board of Investment
“During my career, there was a modest recession in the 90s that was drew off of silly commercial real estate lending, and then we saw the big bubbles in the recent 90s with dotcom and crazy valuations of tech stocks and of course the mortgage disaster,” Levine said. “I have to tell you, I just don’t see these large, rule excesses [today].”
That’s not to say he doesn’t have concerns.
“I see some gizmos that I don’t love, like high yield and emerging market in dire straits,” Levine said. “But again, those are really modest and they’re not wealthy to create these massive, massive problems like those mortgages and mortgage second-hands that completely polluted the global banking system and created a turning-point that we’re kind of still living through the waves today.”
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