Japanese Prime Minister Shinzo Abe, made a pointed comparison to the global financial crisis eight years ago.
Abe has presented data showing that commodities prices have fallen 55% since 2014, the same margin they fell during the global financial crisis. This has been interpreted as “warning of the re-emergence of a Lehman-scale crisis.”
Abe said the G-7 leaders have agreed on the need for flexible spending to encourage world growth but the timing and amount is depended on each country. However some countries saw no need for such spending and we see some world leaders showing views that the current economic situation is not a crisis.
Britain and Germany have been resisting calls for fiscal stimulus.
Abe has presented data showing that global commodities prices fell 55% from June 2014 to January 2016, the same margin as from July 2008 to February 2009, after the Lehman collapse.
Lehman had been Wall Street’s fourth-largest investment bank when it filed for Chapter 11 protection on September 15, 2008, making its bankruptcy the biggest in US history. We saw its failure trigger the global financial crisis.
Could this be history repeating itself?