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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (69493)6/17/2004 10:38:59 AM
From: Skeet Shipman  Read Replies (1) of 94695
 
Bill Gross says the global outlook unstable.

"the advent of financial alchemy" - in particular, the growing use of hedge funds.

"Even banks are employing the 'carry' trade - borrowing short and lending long.

"They're doing things they haven't done before. There's lots of risk in the economy now compared with even five years ago."

There are bubbles in commodities and the UK housing market, as well as the US currency.

"With all this consumer debt, business debt, government debt, smaller movements in interest rates have a magnified effect . . . a small movement can tip the boat."

news.ft.com
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