Economics Matters with Laurence Kotlikoff Is this 1929 All Over Again?
Dec 1, 2025
In a compelling discussion, John Llewellyn, former chief economist at Lehman Brothers and founder of Independent-Economics, shares insights from his extensive experience in global macroeconomics. He explores the heightened geopolitical influences on today's markets and compares current risks to the 2008 financial crisis, emphasizing leverage and opacity. Llewellyn also discusses the implications of AI on jobs and inequality, as well as shifts in European defense due to the Ukraine war. His reflections provide a thought-provoking perspective on today's economic landscape.
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Take Some Risk Off The Table
- Lighten market exposure now to reduce downside risk, especially after major gains.
- John’s group advised taking a bit of risk off the table rather than holding full exposure.
Leverage And Opacity Are The Hidden Killers
- Leverage and opacity remain the central unseen systemic risks in finance.
- John warns current instruments like private equity and stablecoins hide leverage the same way subprimes did.
AI’s Pace Makes It Unusually Disruptive
- AI may be different from past tech revolutions because it spreads fast and touches almost every sector.
- That speed and universality raise unusual macro and social consequences.
