Iran war risks triggering 2008-style financial crisis, warns Bank of England chief
The Iran war risks triggering a 2008-style financial crisis, the governor of the Bank of England has warned.
Andrew Bailey said a meltdown in the $3tn (£2.2tn) private credit market triggered by the conflict could snowball into a wider crisis, given the world was already confronting an energy shock and ructions in debt markets.
Mr Bailey compared the risks to the sub-prime mortgage markets of the mid-2000s, whose complex financial engineering unravelled to trigger a global banking meltdown.
Speaking in his capacity as chairman of the Financial Stability Board, Mr Bailey said the private credit market was “a relatively opaque world”.
In the private credit industry, loans come not from banks but from sources such as hedge funds and financiers. It has grown rapidly since the financial crisis because it is more loosely regulated than bank lending.
Used car prices are skyrocketing:
Wholesale used vehicle prices rose +4.2% MoM and +5.7% YoY in March, to $20,102, the highest since mid-2023.
This also marks the largest YoY increase since the 2020 pandemic price spike.
EVs led the surge at +8.0% YoY, to $28,471, the highest… pic.twitter.com/bma2NGsOIi
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