Former British Prime Minister, Gordon Brown says that the current financial woes are worse than they were in 2008, reports the Telegraph.Speaking at the World Economic Forum in Dalian, China, Brown said he believes that the world’s economy could fall into a 1930-like slump if matters continue in the same vein.
He told the audience:
“The European banks as a whole are grossly under-capitalised: they have liabilities far in excess of American banks. We have now got the inter-play with sovereign debt because we socialised the liabilities,”
“It has morphed into a sovereign debt crisis, and is more serious than 2008 because governments then could intervene to sort of out banks. Now both banks and governments have problems,”
“You cannot begin to solve this unless you realise that it is a banking problem and a growth problem, as well as being a fiscal problem. You have to take co-ordinated action in all three areas,”
Brown added that if Greece were to leave the Euro it would be positive for the whole of Europe since few believe it can push on without a default.
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