If you think of the US based global investor as Humpty Dumpty (HD), high on a wall of "bric" investments, HD is sitting on a mounting wall of worry and the ledge is starting to crumble as quickly as a NYC crane.
Look at the Shanghai and India indices... they make the S&P look a rock solid index...
Now BIS in its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.
According to the BIS, complex credit instruments, a strong appetite for risk, rising levels of household debt and long-term imbalances in the world currency system, all form part of the loose monetarist policy that could result in another Great Depression.
The report points out that between March and May of this year, interbank lending continued to show signs of extreme stress and that this could be set to continue well into the future.
Add to this RBS post of this morning calling for 1050 on the S&P , the FEDEX warning,and the pre-open ominous ...
Interesting times
DCW
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment