Standford Finance Professor Darrell Duffie :”It is not 2008 yet, but it could get much worse since the sovereign debt problem is globally widespread”

“So far it’s not as bad as 2008, but it could get much worse because the sovereign debt concerns are much more global than the subprime mortgagerisk of 2008,” said Darrell Duffie, a professor of finance at Stanford and an expert on the banking system.

A growing lack of confidence is perhaps the most troubling similarity to 2008 and the biggest worry. “There’s a level of fear out there that is a little similar,” said Michael Hanson, a senior economist with Bank of America Merrill Lynch. “It’s not just the fundamentals. It’s the fear of the unknown.”

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