Global Debt Crisis Could Last 20 Years, Warns Future Fund Chairman David Murray
The chairman of the $75 billion Future Fund has warned the debt crisis engulfing Europe and the United States could take at least 20 years to resolve, causing ongoing market volatility, The Australian reported. David Murray warned the post-global financial crisis environment would continue to be characterised by a series of market shocks, with investor uncertainty heightened by concerns over the ability of political systems to contain any emerging meltdown. And he sounded the alarm on the level of government and private sector debt in Australia, saying they both needed to be reduced, given the capacity of Australia to be caught up in a new global financial rout. “The global financial crisis was caused by excessive debt which had built up in the world at both the government level and in the private sector in developed countries,” Mr Murray told ABC radio. “The sorting out of that problem is something that could take up to 20 years. As that post crisis environment unfolds we will see continuing events such as we've seen in the past couple of weeks.” Read more.