Wall Street’s Rosner Fishes Around for the Next Big Financial Crisis

There are many potential problems that could sink financial markets, and reeling them in could be difficult, according to Josh Rosner, the Chief Economist and Strategist at Graham Fisher. Rosner is worried about a potential liquidity crisis, even after the Federal Reserve’s unprecedented qualitative easing campaign. ‘The last crisis was obviously a credit crisis that ended up as a liquidity crisis,’ said Rosner. ‘Unfortunately where four years ago I would have thought that the next crisis was going to be an interest rate crisis, I think it’s entirely likely that it will end up again, because of how long we’ve kept rates so low, a credit crisis, different sector.’ Rosner believes there are problems in both the leveraged loan and commercial loan markets, as the Fed allowed easy credit conditions. ‘So for the first time in history we’re about to see commercial and industrial loans outpace residential mortgage loans as a percentage of banks’ books,’ said Rosner. Rosner made the comments at Camp Kotok, an annual gathering of economists and market participants in Maine. TheStreet talked to Rosner while he was on a fishing boat in the middle of a lake, where he managed to catch a fish as our cameras rolled. ‘This is a good fish,’ he said.