WHO'S NEXT IN DEBT CRISIS?
Speaking of where the next debt crisis would emerge, analysts and economists have divided views.
Parr forecast that the next crisis may come when central banks cannot settle their huge debts. World banks have at no time in history borrowed on such a large scale, he said.
Hu predicted that the debt crisis may stage a comeback in the Eurozone in the next one or two years, but will be less serious than in the case of Cyprus. In the medium and long run, new debt crises are likely to erupt in emerging markets.
Hu Zuliu, chairman of China-based investment firm Primavera Capital Group, identified China as the next victim. Compared with major developed countries, it faces a more complex debt situation, he said.
The United States., according to Byrne, also faces a grim outlook. Moody's forecast the size of the U.S. government's spending in social welfare, including healthcare and pension, will rise out of control and result in higher government debt, which would put its current AAA credit rating under threat.
Zhang also forecast the next crisis would happen in the United States once the dollar's status as the world's predominant reserve currency is shaken. But in the near term, the Eurozone may suffer a further debt crisis, with Spain or Italy a likely target, the economist said.
Life aboard a fishing boat under bridge in city of Chongqing
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