Economy: Are not in a similar situation to 2008
Despite the problems surrounding the Silicon Valley Bank and Credit Suisse, Veronika Grimm does not expect a financial crisis 2.0. “I don’t think we are in a similar situation to 2008,” said the member of the German Council of Economic Experts on Friday on Deutschlandfunk.
At the time, the financial crisis was based on the poor creditworthiness of financial products, which were also not transparent. “It’s different today. There is greater transparency.”
The situation of the big banks is generally better than it was then. The level of equity is higher as a result of the stricter regulation. “Nevertheless, of course, contagion effects can never be ruled out,” Grimm warned at the same time.
The Chairwoman of the Advisory Council, Monika Schnitzer, had previously made a similar statement. “Of course, the collapse increases uncertainty, which is always negative,” Wirtschaftsweise told Reuters. “Overall, however, I do not assume that we will experience a significant negative effect on the German economy.”