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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (101707)	2/27/2009 5:09:10 PM
From: LTK007	Respond to of 110194

i quote Bill Fleckenstein 2/22.2009 and then give link <<1980-82 versus now I was trying to remember the last time I had seen the economic news quite as ugly. For me, the 1980-82 period is the closest example I have lived through. Of course, it was quite a bit different. Many of the problems were a function of sky-high interest rates induced by then-Federal Reserve Chairman Paul Volcker (a consequence of money-supply targets, not interest-rate targets) to break the back of inflation. Also, the world looked a lot different, as the Soviet Union was still in existence and capitalism was not yet a gleam in the eye of the communists in China. What we are now dealing with is roughly 20 years' worth of massive speculation and excess leverage, championed by the United States and mimicked by other countries around the globe. It appears the potential for the newest round of financial weakness is being precipitated by economic problems in Eastern Europe, which are impacting the European banks, especially German ones. We are at the stage now where economic weakness is feeding back into everything, making the situation more difficult for banks everywhere. And, it's becoming clear to nearly everyone that many banks are not just illiquid but insolvent.>> articles.moneycentral.msn.com