‘Significant chance’ of second financial crisis

There is now more than a one-in-five chance of another asset price bubble implosion costing the world more than £1 trillion, and similar odds of a full-scale sovereign fiscal crisis, a key report warned.

Investors must steel themselves for the possibility of a second leg to the financial crisis, and should be equally prepared for a fiscal crisis, in which a major economy faces either default or a “sudden stop” in financing themselves on capital markets, according to the World Economic Forum.  [read more...]

By Edmund Conway, Economics Editor | From www.telegraph.co.uk | Published:  14 Jan 2010