10 years after Lehman: A reality check for the future

Amundi Asset Managers / Equity

07-09-2018

It has been 10 years since the collapse of Lehman marked the beginning of the Great Recession, which threw the global economy into its deepest economic crisis since the 1930s. This is the time for assessments. In our view, the legacy of the crisis appears as four paradoxes, with short- and long-term consequences for the global economy and financial markets.

1. The missed deleveraging. Despite this having been one of the longest cycles on record, we continue to have the uncomfortable sense that over time, we have continued to see largely intact imbalances: a combination of classic secular stagnation features (persistent low growth, low investment) and a super debt cycle. Even with the pace of debt accumulation having slowed, deleveraging in absolute terms has hardly happened.

Equity