Sep 27, 2017

The next financial crisis could come from China, India

Indian Prime Minister Narendra Modi and Chinese President Xi JInping at a summit in Goa, India. Photo: Manish Swarup / AP

Asia's biggest economies are sinking into debt as India gives out an increasing number of bad loans and credit in China's banks accumulates similarly to how it did in the U.S. before the Great Recession, the Telegraph reports.

Why it matters: Global banks, some of which are still recovering, are more vulnerable to crisis than they were in 2006, before the U.S. housing bubble burst, per a World Economic Forum report. "There is still too much debt in parts of the private sector, and top global banks are still 'too big to fail,'" per the report.

  • The world's largest 30 banks hold $43 trillion in assets, compared to the $30 trillion they controlled in 2006.
  • Chinese and Indian banks haven't tightened their lending practices as the European and American banks that were at the epicenter of the last global financial crisis have.
  • President Trump's intention to kill certain Dodd-Frank regulations to stimulate growth could make the banking system more risky, per the WEF.

Go deeper

Coronavirus dashboard

Illustration: Axios Visuals

  1. Global: Total confirmed cases as of 8 a.m. ET: 1,131,713 — Total deaths: 59,884 — Total recoveries: 233,591Map.
  2. U.S.: Total confirmed cases as of 8 a.m. ET: 278,458 — Total deaths: 7,159 — Total recoveries: 9,897Map.
  3. Public health latest: The CDC is recommending Americans wear face coverings in public to help stop the spread of the coronavirus. The federal government will cover the costs of COVID-19 treatment for the uninsured, Health and Human Services Secretary Alex Azar said.
  4. 2020 latest: "I think a lot of people cheat with mail-in voting," President Trump said of the 2020 election, as more states hold primaries by mail. Montana Gov. Steve Bullock said Friday that every county in the state opted to expand mail-in voting for the state's June 2 primary.
  5. Business updates: America's small business bailout is off to a bad start. The DOT is urging airlines to refund passengers due to canceled or rescheduled flights, but won't take action against airlines that provide vouchers or credits.
  6. Oil latest: The amount of gas American drivers are consuming dropped to levels not seen in more than 25 years, government data shows. Trump is calling on the Energy Department to find more places to store oil.
  7. Tech updates: Twitter will allow ads containing references to the coronavirus under certain use cases.
  8. U.S.S. Theodore Roosevelt: Senators call for independent investigation into firing of Navy captain.
  9. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  10. Other resources: CDC on how to avoid the virus, what to do if you get it.

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The renaissance of the American family

Illustration: Eniola Odetunde/Axios

It used to be scarce and hard-earned, but suddenly family time is abundant in the era of shelter-in-place.

Why it matters: For the first time since the early 19th century, many parents and kids — and even grandchildren — are all under the same roof round-the-clock. And if past periods of emergency are any guide, this enforced togetherness could deepen our relationships for years to come.

Go deeperArrow2 hours ago - Health

Biden says he's starting VP search this month

Joe Biden. Photo: Scott Olson / Staff

Joe Biden said he's spoken to Sen. Bernie Sanders and former President Barack Obama about selecting a running mate — and that he wants to build "a bench of younger, really qualified people" who can lead the nation over the course of the next four presidential cycles.

Driving the news: Biden spoke about the state of the 2020 race during a virtual fundraiser on Friday night that was opened to pooled coverage.