Cable warns of second financial emergency

Business secretary Vince Cable has prompted a new confrontation with Chancellor George Osborne after warning Britain could face the “bomb” of a second financial emergency.

The Liberal Democrat Cabinet minister insisted the country had not faced up to the full extent of the turmoil of the 2008 credit crunch and said it was impossible to rule out a fresh crisis hitting the economy, reports the Independent.

His warning will irritate Mr Osborne who argues Britain is out of the "danger zone" as the country begins to benefit from his tough economic medicine.
In an interview with the New Statesman, Mr Cable said he was worried by the "lack of popular understanding" about the "long-term impact of the collapse of the banking system".

The business secretary cited the warning by the billionaire investor Warren Buffett eight years ago that the complicated financial arrangements of American banks were "time bombs" waiting to explode.

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