Is another Financial Crisis possible?

FanaticsIs another Financial Crisis possible? Current ScenarioUS (MODERATELY POSITIVE)US growth modest 2.6 percent in 2015Americas strength in technological progress needs to help accelerate productivity, which is doing wellEURO-AREA: CAUTIOUS SHORT-TERM OPTIMISM, BUT DOWNSIDE RISKS ACCUMULATEEuro Area is projected to grow at 1.6 percent Domestic consumption is a likely source of growth as labor markets improve.

ASIA-PACIFIC: CHALLENGING IN CHINA; MOSTLY POSITIVE ELSEWHEREDespite softening growth rates, the Asia-Pacific region remains the leader for global growth.Growth rates of China and India 5.5 percent from 20152019.Southeast Asia will strengthen to global production base.LATIN AMERICA: UPSIDE POTENTIALEconomic conditions in Latin America are unlikely to improve rapidly in 2015Regional growth at only 1.8 percent.Slowing prices for commodity and energy exportsAFRICA: POSITIVE, BUT UNCERTAINGDP growth in Africa in 2015 is projected at 4.4 percent.A positive growth outlook for Africa is strongly dependent on improved institutional performance and better governance.

Another banking crisis?Collapse of a large bank; banks are leveraged and insider information is difficult to obtain; repercussions will be less severeBanks are now required to hold more capital (larger cushion to absorb losses) Liquidity requirements.Another Euro Crisis?Survival of the Euro can be doubtedMay lead to abandoning of the euro by a new govt. Greeces opposition left wing party, Syriza, might step out of Euro if it comes in power Domino EffectPanicked runs on banks and financial markets in EuropeLeaders are more preparedStrengthening of USD may lead to a crisis?Appreciation leads to increase in lending for other countriesForeign Debt exceed earning powerThe Asian Financial Crisis 1997The Latin America Crisis (1980s-90s)How changes in crude oil may affect the ecnomy?Real-world effects on world economiesSaudi Arabia uses its oil well to support its entire economyVenezuela for every $10 drop in oil prices loses $7.5bn revenues

RemediesMonetary EasingEuropeJapan Implementation of ActsDodd--Frank Wall Street Reform and Consumer Protection ActGLASS-STEAGALL ACT