Larry Elliott Warns Markets Face 2008-Style Crisis as Oil Tops $100 and Bonds Sell Off
Updated
Updated · The Guardian · Sep 21
Larry Elliott Warns Markets Face 2008-Style Crisis as Oil Tops $100 and Bonds Sell Off
1 articles · Updated · The Guardian · Sep 21
Summary
$100-plus oil, a global government-bond sell-off and fresh AI warnings have left financial markets looking as fragile as at any point since September 2008, Larry Elliott argues.
Higher crude has revived fears of persistent inflation and higher interest rates, while petrol and diesel prices remain elevated because refining capacity is tight even without a bigger Hormuz shock.
Wall Street is also testing the belief that AI stocks can keep rising indefinitely after industry leaders urged slower development, a move Elliott says landed badly as Trump resists tighter regulation.
Banks appear less exposed than before the Lehman collapse, but Elliott says recent US Treasury bond buybacks already show official anxiety and hint at broader intervention if markets crack.
Elliott says any new crash would quickly become a political fight over taxes, spending and industrial policy, especially in Britain ahead of next month’s budget.