Financial system 'worse than 2007', warns OECD

Forecasting major downturn

The global financial system is engulfed in a situation worse than 2007, according to the chairman of the OECD's review committee.

Speaking to The Telegraph in Davos, William White, formerly chief economist of the Bank of International Settlements (BIS), said the world has used up all of its "macroeconomic ammunition" and has nothing to defend itself in the face of another crisis. White said: "The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up." He also said global debt levels have escalated since the last financial crisis and authorities across the world need to manage these debt write-offs without creating a political storm. "Debts have cont...