Categories
Gold

Next financial crisis likely to centre on private markets

Click here to get this article in PDF

Financial Times/Satyajit Das/8-11-2022

Graphic image of Humpty Dumpty perched happily on a wall, antique“Just as US subprime mortgages were at the heart of the 2008 financial turmoil, a future crisis may centre around booming private markets. Believing they had found the latest formula for success, investors have ploughed about $9.8tn into unlisted equity, private credit and early stage or new venture funding. Alongside well-known problems — overvaluation, optimistic assumptions, aggressive accounting and high debt levels, there are additional concerns.”

USAGOLD note: With interest rates on the rise – and systemic risks – analysts have identified several trouble spots that could ignite the next 2008-style monetary crisis. Das identifies large private capital pools as one of them. Here, the issue is liquidity and ultimately trapped capital……

Share

The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.