Harvard Prof., Fmr. IMF Economist Rogoff: Financial institution Points Not Mounted ‘at All’ and Issues Will ‘Break’ Attributable to Excessive Inflation, Sluggish China Development

On Thursday’s broadcast of CNBC’s “Squawk Box,” Harvard College Economics Professor and former Worldwide Financial Fund Chief Economist Ken Rogoff argued that the problems round banks haven’t been fastened “at all” as a result of in a world with larger inflation and rates of interest and poor development in China, “we’re in a situation where things are going to break.” He additionally argued that it’s “surprising something hasn’t happened earlier.”

Co-host Kelly Evans requested, “Ken, talk about the contagion risk here, do you see it? Have authorities stopped the problem in its tracks?”

Rogoff responded, “Not at all. I think that we’re in a world where inflation’s higher, real interest rates are higher, China’s not going to be the growth force that it was. It’s not easy to have a soft landing here. It’s just surprising something hasn’t happened earlier. So, I think they did a good job in preventing bank runs, and credit both what the Swiss National Bank did and what the Fed did. But they can’t necessarily fix the deeper problem in some banks’ books. And it’s not just banks. In the economy more broadly, we’re in a situation where things are going to break.”