Economist Intelligence Unit risk report asks: What happens if financial turmoil capsizes the global economy?
May 2nd, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
The Economist Intelligence Unit says that when the US Federal Reserve rescued Bear Stearns, an investment bank, in March it elevated the subprime mortgage meltdown to historic levels, alongside the 1987 Black Monday stock-market crash, the 1992 attack on the British pound, Mexico’s 1994 “tequila” crisis and 1997-8’s triple whammy—Thailand’s currency devaluation, Russia’s debt default and the collapse of an iconic US hedge fund. The report Shooting the rapids: What happens if financial turmoil capsizes the global economy? was published on Thursday.