Coronavirus fallout can morph into a global financial crisis, the World Bank’s chief economist says

Coronavirus fallout can morph into a global financial crisis, the World Bank’s chief economist says

King Juan Carlos delivers 'Premio de Economia Rey Juan Carlos' (King Juan Carlos Economy Award) to the economist Carmen Reinhart at Banco de Espana headquarters on December 11, 2018 in Madrid, Spain.

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Major economies may be well on their way to recovery, but outsized government borrowing runs the risk of fueling a financial crisis, World Bank Chief Economist Carmen Reinhart said Thursday.The path of governments' fundraising and bond-buying is "not sustainable" and could spark debt crises should they continue, the economist warned."This did not start as a financial crisis but it is morphing into a major economic crisis, with very serious financial consequences," she said on Bloomberg TV.Visit the Business Insider homeage for more stories.

If not handled correctly, the coronavirus pandemic can fuel a global financial disaster