A credit boom in countries such as China means that the world is in a worse position than it was in 2008 when a global financial crisis tipped the world into recession, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, told CNBC.
“If I am telling you that we had a credit crisis in 2008 because we had too much credit in the economy, then there is that much more credit as a percent of the economy now,” Faber said.
He referred to a recent report by former Bank for International Settlements chief economist William White which said that total credit in advanced economies is now 30 percent higher as a share of gross domestic product (GDP) than it was in 2007.
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