Ghosts of the GFC haunting our fragile economies

Today in The Australian

On August 9, 2007, France’s biggest listed bank, BNP Paribas, froze €1.6 billion worth of funds backed by subprime mortgages, signalling the beginning of the global financial crisis.

About Henry Ergas

Henry Ergas AO is a columnist for The Australian. From 2009 to 2015 he was Senior Economic Adviser to Deloitte Australia and from 2009 to 2017 was Professor of Infrastructure Economics at the University of Wollongong’s SMART Infrastructure Facility. He joined SMART and Deloitte after working as a consultant economist at NECG, CRA International and Concept Economics. Prior to that, he was an economist at the OECD in Paris from the late 1970s until the early 1990s. At the OECD, he headed the Secretary-General’s Task Force on Structural Adjustment (1984-1987), which concentrated on improving the efficiency of government policies in a wide range of areas, and was subsequently Counsellor for Structural Policy in the Economics Department. He has taught at a range of universities, undertaken a number of government inquiries and served as a Lay Member of the New Zealand High Court. In 2016, he was made an Officer in the Order of Australia.
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3 Responses to Ghosts of the GFC haunting our fragile economies

  1. Flyingduk

    Then, they kicked the can down the road and blew the bubble bigger: we are still due the ‘recession we had to have’

  2. Rossini

    The recession that we have to have??????

    How do public servants or politicans suffer…….they still get paid

  3. max

    Henry Ergas
    “From the beginning of the 20th century to the 1970s, the ratio of borrowings by households and businesses to gross domestic product in the advanced economies fluctuated around the 50 to 60 per cent mark. But towards the end of the 70s it started to rise, before surging by some 30 percentage points in the decade before the GFC. Having stood at 62 per cent in 1980, by 2010 private borrowings had reached 118 per cent of GDP.”

    What happened in 1971:
    The Nixon shock –unilateral cancellation of the direct international convertibility of the United States dollar to gold.

    Thou shalt not steal

    Your silver has become dross, your choice wine is diluted with water.

    Do not use dishonest standards when measuring length, weight or quantity.

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