The World Is Not Ready For The Next Financial Crisis

Central bankers have ventured beneath the "zero lower bound" on rates to combat economic weakness

The Telegraph: The world is defenceless against the next financial crisis, warns BIS

Monetary policymakers have run out of room to fight the next crisis with interest rates unable to go lower, the BIS warns.

The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned.

The so-called central bank of central banks launched a scatching critique of global monetary policy in its annual report. The BIS claimed that central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies.

These low interest rates have in turn fuelled economic booms, encouraging excessive risk taking. Booms have then turned to busts, which policymakers have responded to with even lower rates.

WNU Editor: When is the world ever ready for a financial crisis? But as bad as past financial crisis have been .... my gut is telling me that the next crisis is going to be a doozy for all of us.