Saturday, October 04, 2008
A brief word from Unforeseen Contingencies
I will be posting quite a bit on the financial debacle, and the bailout, fairly soon. For now, I'll simply say that I fear it will not work, and that a real mess lies ahead. This isn't my prediction, it's what I'm hearing from analysts such as Nouriel Roubini.
I keep thinking of something I read on Bloomberg that I found chilling: an advisor to the Peoples' Bank of China wants the PBC to have three way meetings with the central banks of Japan and Korea. Why? So they can coordinate so as to avoid a sale of U.S. debt instruments that snowballs into a panic, with everone dumping trillions onto the market.
If true, this is scary. The financial balance of terror is teetering.
(I'll try to get a link or more info on this up later)