It may not feel like it, but ten years on from Lehman’s, there is plenty of good news to point to. Most positively, employment is at record levels in most developed countries outside the eurozone (despite ongoing fears that we will imminently be replaced by robots), global economic growth has been solid and Asset prices have recovered, too – stockmarkets around the globe have largely regained or beaten their pre-2008 highs, as have house prices.
However, ultimately, the financial crisis was all about debt. And the news on that front is not so good. In 2007, global debt amounted to 179% of global GDP. Ten years on? Global debt in 2017 stood at 217% of global GDP, according to the BIS. And it’s worse in companies, where the quality of debt has also deteriorated quite sharply. The sense from most economists is that the next crisis won’t look the same as the last one, but irrespective, current debt figures hardly represent what anyone would call real progress.