Ignoring the lessons of the financial crash | Letters

Mistakes that led to the 2008 financial crisis are about to be repeated, fears Milan Bollecker, while David Reed is worried by the economic impact of soaring property prices

History never repeats itself but, according to the IMF, it might this time (Red alert as world ignores history lesson, 17 October). Despite countless publications and studies related to the 2008 financial crisis and its effect on the whole economic system, politicians, central banks and economic institutions seem to keep using the same logic that they used 10 years ago.

The decrease in interest rates caused by central banks' policies provoked the boom of private debt held by companies. Together with the constant diminution of companies' abilities to repay their debts, this presents a clear underlying problem and a terrible outlook of a new global economic crisis. By favouring short-term decisions and policies in order to maintain growth at an acceptable rate as the recent IMF report proves, central banks keep committing the same errors. Will the world economic system be able to avoid another crisis if we continue to accumulate more and more risk factors?
Milan Bollecker
Paris, France

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