Mobius: ‘Next financial crisis is imminent’
According to Mobius, things are going to get a lot worse before they get better. Speaking to Forbes this week, Mobius, chief of the emerging markets department at Templeton Asset Management, said that “there is definitely going to be another financial crisis around the corner.”
The reason? “We haven’t solved any of the things that caused the previous crisis.”
Mobius says that unregulated derivatives growing exponentially are going to bankrupt the globe. It’s what caused the last major recession, and with $600 trillion in derivatives around now without anyone really overseeing them, Mobius says that a crisis is imminent.
As a crisis is already apparent in the Eurozone, the crumbling economy across the sea is only a few cracks away from causing a global disaster — and Mobius says that mismanagement and the lack of oversight regarding the derivatives is only expediting that fall out.
He’s not the only one either.
Only two weeks ago, noted American economist Nouriel Roubini warned that the probability of a complete breakdown in Europe was almost certain, and a domino effect would collapse the American markets immediately as a response. “If the Eurozone blows up, it all gets worse,” party guests say Roubini lectured from a private event earlier this month. Days later, Roubini warned of a collapse coming towards Goldman Sachs and Morgan Stanley from his Twitter account.