Big Risks to Watch: 10 Years After Lehman

The video discusses the current economic concerns, focusing on the limited monetary and fiscal space to react to potential shocks. It highlights the increased debt levels and the fragility of international cooperation compared to 2009. The discussion also covers the sensitivity of debt to interest rate normalization and the potential impact on financial stability. While systemic risk in the banking sector has decreased due to regulatory changes, the video emphasizes the need to identify new crisis catalysts, as another crisis is inevitable.

What is one of the main reasons for the limited ability to respond to future financial shocks?

• Decreased trade barriers

• Higher debt to GDP ratios

• Increased international cooperation

• Stronger political centers

How has the debt situation changed compared to ten years ago?

• Debt levels have remained the same

• Debt levels have increased by $30 trillion

• Debt levels have increased by $70 trillion

• Debt levels have decreased significantly

What is a potential consequence of normalizing interest rates on debt?

• Debt becomes less sensitive to interest rates

• Governments and companies may appear less financially sound

• The housing market becomes more robust

• Interest rates have no impact on debt

What has been a significant change in the banking sector since the last financial crisis?

• Unchanged risk levels

• Diminished systemic risk

• Decreased regulatory oversight

• Increased systemic risk

What is a key concern regarding the next potential crisis?

• It will definitely be financial in nature

• It may not be financial in nature

• It will be caused by the banking sector

• It will be less severe than previous crises