This post from another site is right on the money IMHO.
rumormillnews.com
THE GLOBAL FINANCIAL SYSTEM> MADNESS PLAYING ITSELF OUT
Posted By: Rosalinda
Date: Wednesday, 14 January 2004, 12:51 p.m.
"WHAT IS HAPPENING IN THE GLOBAL FINANCIAL SYSTEM
IS MADNESS PLAYING ITSELF OUT.
The system is one giant leveraged hedge fund.
The whole thing is held together by a friendly alliance of central bankers,
with their policy, but it can't be sustained,
the illusions are unsustainable. We are living on borrowed time,"
stated one of the world's leading investment fund managers, speaking on background today.
"We are heading toward a serious day of reckoning," he affirmed,
"and my reaction to what your man is saying, is to agree,
that this reckoning will likely come in 2004. It can't hold.
There is a housing bubble, bond bubble, and stock market bubble,
all at the same time. The balloon keeps growing,
but it will all burst."
"I am just amazed, by the mood of bullishness in the stock
markets; I know, with great vehemence, that this can't go on much longer," he affirmed.
"I was lying in bed last night, trying to
come up with an image for what is going on. What I thought, was
that the situation in the global financial system is like the
situation in a savannah, with the campers surrounded by wild
animals, and Alan Greenspan and the central bankers are the
guardians of the camp. They are throwing wood onto the fire, to
keep the animals out, but by 9 PM, they have used up all the
available wood. Guess what happens to the campers."
He noted that "the growth of the level of indebtedness, the
growth in borrowing in the first half of last year, was
astronomical, and the growth in derivatives was exponential.
According to the IMF, the level of derivatives is now $170
trillion, although your man may be right, that it is a lot
higher. I just can't fathom, what is happening with all this
money. As to the U.S., the fact is that the Asian markets can't
keep pumping in money to the bond market, and there is no way
that a rise in exports now, can make up for the huge trade
deficit.... My sense, is that Bush has peaked too soon."
"People caught up in this game don't want to see the
reality, they have the momentum, the game is self-sustaining, but
hubris will have its price. I can't forecast or predict when
this will happen, or what will be the development that does it,
but the fact is, we are heading toward a very, very sharp fall.
Asset values are way out of touch with reality. And their own
forecasts can't be met. There will not be a rise in corporate
spending, and the government can't spend, to keep the housing bubble going."
For the moment, there are those "market players" who are
making a lot of money, but, he said, that all this bubbles expansion
is taking the flesh out of the real economy, a
nd the reality is, the system as a whole is thoroughly bankrupt.
He noted, that this is the driving force behind the
growing tensions in Britain, over the collapsing infrastructure:
the government is bankrupt. |
