[COMMENT: Here is yet another great, eye-opening article about how the GFC of 10 years ago was foreseeable by some people – the professionals who say that no one could see it coming were WRONG! Ten years on, have we learnt any lessons?]
(10 August 2017, AFR, p55, by Jim O’Neill)
‘August 9, 2017, is the 10th anniversary of the decision by the French bank BNP Paribas to freeze some $US2.2 billion worth of money-market funds. Those of us who were active in financial markets at the time remember that event as the beginning of the worst global financial crisis since the Great Depression. Many economists and financial observers argue that we are still living with the consequences of that crisis, and with the forces that incited it. This is partly true. Many developed economies still have in place unconventional monetary policies such as quantitative easing, and both productivity and real (inflation-adjusted) wage growth appear to be mostly stagnant.
But it is important to put these developments in perspective….’