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Are there more financial crises in store for the world economy? MIT Sloan School Professor Simon Johnson thinks so.
“Most experienced watchers of the euro zone are expecting another serious crisis in early 2011, tied to the rollover funding needs of its weaker governments,” Johnson wrote recently in a blog item on The New York Times website.
What’s more, Johnson thinks that financial markets will, after placing pressure on Europe, at some point turn to the United States. That could result in what Johnson calls a “deep and morally disturbing crisis in the United States.” He writes:
“Our leading bankers looted the state, plunged the world into deep recession and cost the United States eight million jobs. Now many of them stand by with sharpened knives and enhanced bonuses — willing to suggest how the salaries and jobs of others can be further cut. Consider the morality of that.”
You can read Johnson’s blog item on this subject at NYTimes.com. For more on his views on the financial system in general, watch this MIT World video from the spring of 2010: