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World needs $100 trillion more credit, says World Economic Forum

Posted By admin On January 20, 2011 @ 4:47 am In Money Watch | Comments Disabled

Emma Rowley
London Telegraph [1]
Jan 20, 2011

The world’s expected economic growth will have to be supported by an extra $100 trillion (£63 trillion) in credit over the next decade, according to the World Economic Forum.

This doubling of existing credit levels could be achieved without increasing the risk of a major crisis, said the report from the WEF ahead of its high-profile annual meeting in Davos.

But researchers warned that leaders must be wary of new credit “hotspots”, where too much lending takes place, as the world emerges from a financial catastrophe blamed in large part “to the failure of the financial system to detect and constrain” these areas of unsustainable debt.

“Pockets of credit grew rapidly to excess – and brought the entire financial system to the brink of collapse,” said the report, written in conjunction with consulting firm McKinsey. “Yet, credit is the lifeblood of the economy, and much more of it will be needed to sustain the recovery and enable the developing world to achieve its growth potential.”

Full article here [1]


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URLs in this post:

[1] London Telegraph: http://www.telegraph.co.uk/finance/financetopics/davos/8267768/World-needs-100-trillion-more-credit-says-World-Economic-Forum.html

[2] ‘Significant chance’ of second financial crisis, warns World Economic Forum: http://www.prisonplanet.com/significant-chance-of-second-financial-crisis-warns-world-economic-forum.html

[3] World Economic Forum in Switzerland: Global Elites Celebrating Hypocrisy: http://www.prisonplanet.com/world-economic-forum-in-switzerland-global-elites-celebrating-hypocrisy.html

[4] Protesters rally against World Economic Forum: http://www.prisonplanet.com/protesters-rally-against-world-economic-forum.html

[5] Portable DNA Sequencer Demonstrated at World Economic Forum: http://www.prisonplanet.com/portable-dna-sequencer-demonstrated-at-world-economic-forum.html

[6] US To End 2010 With $13.9 Trillion In Debt, Total Debt Incurred Since Great Financial Crash: $4.4 Trillion: http://www.prisonplanet.com/us-to-end-2010-with-13-9-trillion-in-debt-total-debt-incurred-since-great-financial-crash-4-4-trillion.html

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