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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (63870)	5/26/2010 5:46:14 AM
From: elmatador	Respond to of 217542

Asian fleecing of 1998 root cause of today´s maladies. As we all know a crisis in the periphery had been always a boom for the center. The ‘Ultimate Driving Machine’ adds of the late 80s. You all remember Bonfire of Vanities Masters of thew Universe. Mike Milken and Gordon Gecko ‘Greed is Good’. The Yuppies and the yellow ties were all financed with capital exported by the emerging markets being bled to death. While the fleecing pre-1998 was seen and commented by Elmat. The 1998 is now been analysed. Another round of fleecing was done in 1997/98. That time with disastrous consequences. When the Asian economies shuddered and currencies nearly collapsed in 1998, many economists predicted the tremors would take down the United States and European economies. Quite the opposite occurred. A stream of money flowed from Asian banks into United States Treasury bonds, and interest rates fell as a result. Oil prices also dropped. And the United States emerged stronger. “Everyone competed to reduce their G.D.P. forecasts and it ended up being much stronger than forecast,” recalled Mr. Barbera. … Pumping so much money into a nation can be like pumping adrenalin into a sick patient — it masks the underlying infection. It could be argued that the infusion of cash in 1998 further inflated the Internet stock bubble, which popped several years later with disastrous consequences. nytimes.com But no word about the fleecing of the past which fattened the OECD countries to the detriment of the emerging markets. It does look that the OECD countries swallow more than they could digest and are now dying out of indigestion.