The Economist Predicted the Global Crisis
OREANDA-NEWS. Economic growth in the world has peaked, and now there is a high probability of a global crisis. Given the possible fourth wave of coronavirus, economist Alexey Korenev fears that the shocks may be heavier than the Great Depression in the United States. He told about it for Russian media Lenta. Korenev said that the stock market has reached another high and this dramatically increases the risk of a crisis.
«Many serious economists predict a crisis that will be worse than the Great Depression. In particular, this is said by a leading American expert who predicted the crisis of 2008. According to him, the economic bubble is much worse now than in 1929. The world markets are very overheated and, as the experience of the last year and a half shows, we are completely unprepared for the shock effects, starting with the shutdown of messengers, after which all the processes fell down like a chain», Korenev said.
At the same time, according to him, economic bubbles can grow for a very long time, so a crisis is not guaranteed in the near future, but it will happen sometime. The economist also sees the problem of civilization in the creation of systems without a margin of safety and reserves. In them, a small shift can bring down everything.
«Our world was built not by engineers, but by effective managers. The failure of the messenger led to the fact that everything got up, up to the mail. One stuck container ship has seriously shaken the economy of a large part of the world. And I'm not talking about the energy crisis in Europe yet», Korenev said.