View more on these topics

US deficit puts superpower status at risk, says Paulson

Former US Treasury secretary Hank Paulson says the US is putting its status as a superpower at risk by running such a high budget deficit.

According to the Daily Telegraph, Paulson told a group of investors that the $1.34trn deficit is putting its economy at risk.

He said: “I cannot think of any time in history of a superpower continuing to be one if they do not have a strong economy and fiscal system.”

On the second anniversary of the collapse of Lehman Brothers, which was overseen by Paulson, he warned that the recent Dodd Frank regulatory reforms in the US did not go far enough in averting the next financial crisis.

He said: “We have to assume that regulation will not be perfect. We will have another financial crisis sometime in the next 10 years because we always do.”

But Paulson echoed the sentiments of Berkshire Hathaway chairman Warren Buffett, who earlier this week stated that the US would not fall into a double dip recession.

Recommended

N&P facing 250 Keydata compensation claims

Norwich & Peterborough Building Society is to receive 250 compensation claims by lawyers acting for investors whose savings were placed in Keydata products on the group’s advice. Law firm Regulatory Legal says it will also this evening send documents to the FSA alleging that N&P recommended Keydata products to inappropriate clients. The documents will also […]

No sovereign debt is risk free, says Buiter

No sovereign debt can be considered completely immune to default, according to former Monetary Policy Committee member and Citigroup chief economist Willem Buiter. A recent study by the International Monetary Fund said that sovereign default was “unnecessary, unlikely and undesirable” but Buiter argues that even the G7 nations’ debt does have risk attached. He says: […]

1

Governor of Bank of England will be ‘too big to fail’

The office of the Governor of the Bank of England will be “too big to fail” once the current regulatory changes come into play, according to Lord Myners. The Government is proposing to break up the Financial Services Authority and replace it with the Consumer Protection and Markets Authority and the Prudential Regulatory Authority. The […]

1

GE Money CEO Colin Shave to retire

GE Money Home Lending chief executive officer Colin Shave has decided to retire on December 31, 2010, after a 35-year career with GE. Shave, who is also the chairman at GE Money Home Lending, joined the business in 2003 and previously worked for GE in a variety of roles around the world including South Africa, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment