After ten years, the financial crisis has not been processed still. Because the Problem of high debt has become larger. The European Central Bank (ECB) ends its bond-buying program, but a rate increase in the coming year, reflecting the difficult economic and stock market environment is less likely.
The interest rate hikes of the us Fed have shown how emerging economies and companies with high debt are under increasing pressure. Now, the former Fed chair Janet Yellen warns of a new financial crisis, because the debts of American companies have grown since the financial crisis. With the higher level of debt of States, companies and households will for the monetary policy is becoming more and more difficult to start the withdrawal from the drug of cheap money, or, as in America, to continue.
High debt, cheap money and careless lending, the causes of the financial crisis ten years ago. The debt burden has grown since then. A recession can be exacerbated if the high debt is overwhelming many companies.
