Former ECB Chief Economist Concerned over Potential for Financial Crisis of New Dimension

Dec. 16, 2019 (EIRNS)—In an interview with Frankfurter Allgemeine Sonntagszeitung, the Sunday edition of the daily FAZ, former European Central Bank (ECB) chief economist Otmar Issing warned that the ECB’s extreme low-interest rate policy is encouraging investors to get into things, whose risks they do not realize. The market value of many assets does not reflect the real risks. And since this approach is moving into the most remote corners of the financial market, “that can lead to a crisis of new dimensions,” Issing says, adding that the situation is as fragile as before the outbreak of the crisis in 2008.

Issing has a good reason to worry, naturally, because he does not have any solution.