Macroeconomics

The banking crisis, which had already become apparent a few weeks ago, remained the dominant topic in the political and economic media.

Although the problem seemed to be solved relatively quickly and professionally in the US and Switzerland, questions remain about the world possibly heading for a new financial crisis. The sum of economic factors, led by the rise in interest rates, seems very worrying, but many remain convinced that the banking system is much more stable today than it was in 2008 and that states will stabilise the system. These are hypothetical assumptions. The total debt of companies and states has risen massively after a phase of extremely low interest rates. Developing countries that have borrowed in foreign currencies will be hit just as hard by rising interest rates as those that have bet on low, long-term interest rates with their investments. This is, of course, especially true for the real estate sector, on which many eyes are now turning to see if it might not be the next domino to fall.

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