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British consulting firm Oliver Wyman has a vision of the next financial crisis.The 24-page report begins with a dramatic account: John picked up the phone. It was the bank’s legal counsel, Peter Thompson, calling. He had dramatic news. Garland Brothers, one of the world’s oldest banks, would declare bankruptcy tomorrow….
If that sounds familiar, so will the way the crisis plays out. Loose monetary policy and faulty regulation drives money into shadow banking, commodities and emerging markets. When the bubble pops, no one escapes the crash that follows.