Economy: Not in a similar situation to 2008
Despite the troubles surrounding Silicon Valley Bank and Credit Suisse, Veronica Grimm doesn’t anticipate Financial Crisis 2.0. “I don’t think we are in a situation similar to that in 2008,” a member of Germany’s Council of Economic Experts said on Deutschlandfunk on Friday.
At that time, the financial crisis was based on the poor creditworthiness of financial products, which was also not transparent. “The situation is different today. There is more transparency.”
The big banks are generally better off than they were then. The level of property rights is higher as a result of stricter regulation. At the same time, however, of course, the effects of infection can never be ruled out, Grimm warned.
The speaker of the Shura Council, Monica Schnitzer, had previously made a similar statement. “Of course the collapse increases uncertainty, which is always negative,” Werchaftswezi told Reuters. “Overall, however, I don’t suppose we will experience a major negative impact on the German economy.”
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