A bigger crisis than the American banking crisis of 2008

Ahmedabad: The global economy, which has overcome many tough challenges due to the corona epidemic, has been dealt a big blow by inflation and the Russia-Ukraine war, which has fueled it, and now the American banking crisis. However, investment guru Jim Rogers has predicted that the current crisis has taken a more severe form in the future.

Rogers feels that the current global turmoil in the banking sector is far from over and could slowly turn into a bigger crisis than 2008. He said that debt levels across the world have skyrocketed, due to which the situation could become dire. In an interview, he also pointed to the issue of inflation and warned that interest rates will go much higher before central banks ease their policy. He cited history as saying that financial crises usually start as isolated events and later escalate into larger crises.

He said, 'Whenever you read about financial crises of the past, you see that all these events start from a very small place, with a small issue and after a few months the matter becomes so big that it engulfs the entire system. ' So the current crisis is not over yet.'

Governments have taken swift action to ensure the safety of depositors and calm panic. This has helped restore investor confidence to some extent. However, there is still a wave of panic at home, evident in the fall in Deutsche Bank shares last week.

Rogers added that 'we had a problem in 2008 when people took on too much debt. However, since 2008 the debt levels have skyrocketed and are now so large that any future problems will be very large in size.'

Elaborating on this issue, he said that countries like India and America currently have high levels of debt. America is the biggest debtor country in the history of the world. 25 years ago China was not in debt but now China is also in debt. Many internal problems are plaguing China.

The investment guru went on to say, 'According to me, this crisis in the banking sector is a serious problem. Perhaps in the future when this problem affects all of us, it will become a much bigger and worse problem. Last week some of our banks went bankrupt. This number may be higher next time. If you remember, the financial crisis of 2008 started with a few small banks in 2007 and eventually led to Lehman Brothers, and only then did everyone realize that this was a big problem. This is how these things always work.'