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Chance of second global recession: OECD expert

Chance of second global recession: OECD expert article image
A leading economist at the Organisation for Economic Co-operation and Development (OECD) warns that chances of a second global recession are strong. "There are many icebergs the ship has to negotiate before we're out of jail here. This is going to be a 10-year process, not a one year process," said deputy director of the OECD's financial and enterprise affairs, Dr Adrian Blundell-Wignall. Blundell-Wignall says so long as underlying banking problems remain, so does the threat of a 'double-dip' recession. Changes to accounting rules, and the shifting of bad assets to big central banks in the US and Europe means the system is still unstable, he said. "They have to be paid back... If you put this collateral back to them what would their situation be? That's why credit isn't supporting this recovery." However, Blundell-Wignall states this is his own view, not that of the OECD.

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