He noted that while the banking sector is “pretty decent” due to reforms over the last 10 years, he believes the sector is not performing its role within the economy “quite as well”. Still, he believes it is unlikely to be the source of the next crisis.
The public debt situation is going to get “much worse” in major advanced economies, says Ravi Menon at the Bloomberg New Economy forum.
“The question arises, who’s going to buy all these so-called risk-free assets? They’re not risk-free anymore,” he notes. “So public debt worries me a lot.”
