James Forsyth

Davos man thinks sovereign debt is the most likely cause of the next financial crisis 

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The markets have traditionally not looked too carefully at sovereign debt. But that seems to be changing. At a panel at the World Economic Forum in Davos, people were asked to vote what was most likely to cause the next crisis. More than 50 percent of them, 50.7 to be precise, named sovereign debt far ahead of protectionism, 37.3%, and over-regulation, 12%.

Another interesting tit-bit from Davos is this quote from Ken Rogoff, a former IMF chief economist who the Tories greatly admire, ‘If you took away the props of the (European Central Bank) and the (International Monetary Fund) half a dozen countries in Europe would fail tomorrow’.  

Written byJames Forsyth

James Forsyth is Political Editor of the Spectator. He is also a columnist in The Sun.

Topics in this articleSociety