Bank for International Settlements fears fresh Lehman crisis from worldwide debt surge - Telegraph
Mr Caruana said the international system is in many ways more fragile than it was in the build-up to the Lehman crisis. Debt ratios in the developed economies have risen by 20 percentage points to 275pc of GDP since then.
The BIS warned in is annual report two weeks ago that equity markets had become "euphoric". “Overall, it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally,” it said.
The BIS says prolonged monetary stimulus in the US, Europe, and Japan has led to a leakage of liquidity, contaminating the rest of the world. The rising powers of Asia are no longer able to act as a firebreak – as they did after the Lehman crash –and may themselves now be a source of risk.
With FOX Business News talking about a big Market Correction coming, it's a little scary to see these kind of reports.
I'm not a financial expert, but I don't see how corporations cutting back wages, employees and inventories can continue to lead to profits and value indefinitely? Investors looking for returns have spurred the stock buying because of low interests rates, but growth relying mostly on cheap credit won't keep the two balanced if people aren't earning enough to buy their products or save money.