When the next financial crisis does come, Harford says she thinks it’ll be one of territorialism, nationalism and some of the issues that will fall out of today’s politics.
“The fines that are coming out across the world for individuals are making it more and more difficult for companies to act and invest globally, which makes it that much harder for the world to invest when capital flows are constrained,” Harford said. “I have to be nervous about what that could do for a financial crisis situation.”
David Villa, chief investment officer of Wisconsin State Investment Board
“I think the next financial crisis is several years into the future,” Villa said. “And I think it’s going to be triggered by the three classic events: interest rates will peak, the economy will slow down and then defaults will peak.”