Category: Economy

EconomyGovernmentPolicy

Bank of England Governor Sounds Alarm Over Private Credit Market Parallels to 2008 Crisis

Bank of England Governor Andrew Bailey has expressed serious concerns about potential systemic risks in private credit markets, drawing comparisons to the 2008 financial crisis. The warning comes following the collapse of two major US firms and observations of complex financial engineering reminiscent of pre-crisis practices.

Central Bank Chief Highlights Troubling Patterns

Bank of England Governor Andrew Bailey has issued a stark warning about what he describes as “worrying echoes” of the 2008 financial crisis emerging in private credit markets, according to reports from his appearance before a House of Lords committee. The central bank chief specifically pointed to the recent collapse of two leveraged US firms – First Brands and Tricolor – as potential indicators of broader systemic vulnerabilities that require immediate scrutiny.

by Aaron Blake
EconomyPolicyTrade

U.S. Trade Deficit With China Plummets as Imports Shift to Vietnam, Mexico, and India

A deep dive into U.S. trade data reveals a dramatic decline in imports from China, with eight key categories falling by more than half since 2018. This shift has significantly altered global supply chains and the overall U.S. trade deficit. The data indicates a complex trade war outcome with manufacturing moving to other nations.

Major Shift in U.S. Import Landscape

According to an analysis of U.S. Census Bureau data, eight of the top ten U.S. imports from China in 2018 have fallen by more than 50% as of the latest data through July. Five of these categories have reportedly declined by over 60%, signaling a substantial realignment of global trade flows. This shift occurs as the U.S. trade deficit with China has dropped by 52.94% from 2018 levels, falling from $296.54 billion to $194.98 billion in the first seven months of this year.

by Aaron Blake