Ross Cameron

Photo credit: CPAC Australia

This economic crisis will be bigger than GFC 2008: Ross Cameron

Nothing seems to be working for the markets. Cities in India are selectively going into a shutdown. Is that the only answer, just shut trading for a while hopefully? When we come back after a month, the world will be a calmer place?
Unfortunately, a month is probably too optimistic. First of all, we have to be prepared that the economic crisis arising out of this pandemic will be worse than we saw during the 2008 Global Financial Crisis. The difference here obviously is that during the 2008 GFC, it was really a banking crisis which turned into an economic crisis, and the path to recovery was fairly clear in that case: failing banks, supplying liquidity, cutting interest rates and fiscal stimulus. This time around, with a pandemic appropriate fiscal action and appropriate monetary action are much less clear, and the duration of the impact is likely to be much longer.

Source: The Economic times

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