The crash that could come
Boston Globe
by Robert Kuttner
07/30/07
Historically, October has been the month for big financial busts. But this year, October could come early. Investors and ordinary citizens have good reason to worry about a perfect economic storm: a deepening loss of confidence in the dollar leading to higher interest rates; the higher rates bringing a crashing end to a hedge-fund, private equity, and merger binge that has depended heavily on cheap borrowed money; the boom in bait-and-switch mortgages ending in a morning-after of rising defaults and sinking housing values; inflationary pressures in food, oil, and other commodities leading to still higher interest rates — all unsettling stock and credit markets and putting a new squeeze on consumers borrowed to the hilt. The historical parallels aren’t comforting...
http://tinyurl.com/37gtkr
Informant: Thomas L. Knapp
http://freepage.twoday.net/search?q=Robert+Kuttner
by Robert Kuttner
07/30/07
Historically, October has been the month for big financial busts. But this year, October could come early. Investors and ordinary citizens have good reason to worry about a perfect economic storm: a deepening loss of confidence in the dollar leading to higher interest rates; the higher rates bringing a crashing end to a hedge-fund, private equity, and merger binge that has depended heavily on cheap borrowed money; the boom in bait-and-switch mortgages ending in a morning-after of rising defaults and sinking housing values; inflationary pressures in food, oil, and other commodities leading to still higher interest rates — all unsettling stock and credit markets and putting a new squeeze on consumers borrowed to the hilt. The historical parallels aren’t comforting...
http://tinyurl.com/37gtkr
Informant: Thomas L. Knapp
http://freepage.twoday.net/search?q=Robert+Kuttner
rudkla - 31. Jul, 11:29
