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Politics : Israel to U.S. : Now Deal with Syria and Iran -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (14977)	4/27/2007 4:23:37 PM
From: sea_urchin	Respond to of 22250

> the US decided that printing unlimited amounts of paper money (debt) and spending it on the military was the way to go. theinternationalforecaster.com >>In February, via an internal memo, the Carlyle Group said they see another 12 to 24-months or more of “excess liquidity,” which will drive further profits and growth and that the current liquidity environment cannot go on forever; and, that the longer it lasts the more money our investors will make; but also that the longer it lasts, the worse it will be when it ends” In the missive it was stated that Carlyle’s fabulous profits were not solely a function of their investment genius, but have resulted in large part from a great market and the availability of enormous amounts of cheap debt. In fact, there has been and is so much liquidity in the world financial system that lenders, even their own lenders, are making very risky credit decisions. This sea of money and credit has allowed deals to be done that could never have been done otherwise. They do not expect the Fed to reduce interest rates anytime soon. What could bring this global liquidity to an end? Just that business would diminish their borrowing or could it be higher interest rates? Could it be a terrorist attack; $100 per barrel oil; trade protectionism; the absorption of excess skilled labor into the global economy; the US elections; Russian energy policies; a multi-billion dollar bankruptcy; a tightening by the Bank of Japan or the Fed; an end to the yen carry trade as a result; or perhaps the collapse of several hedge funds or a derivative collapse? All are possible and at least one is probable. If we and Carlyle are correct, we can expect more than ample liquidity until February of 2009. <<