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Letter Re: Numerous New Economic Crash Warnings
Hi Jim,
Within the last couple of days I have noticed that multiple economic and financial
institutions have started to issue global financial crash alerts. For instance:
- Morgan
Stanley warns of a 'catastrophic event'. The point of maximum stress
could occur in coming months if the European Central Bank (ECB) starts to
raise rates and the Fed backs away from expected tightening. The rates differential "could
trigger a 'catastrophic' event".
- The
Global Europe Anticipation (LEAP/E2020) team is now convinced that this
period will consist for the whole world in a major plunge into the heart of
the phase of impact of the global systemic crisis. The upcoming six months
are in fact the core of the unfolding crisis. The troubles met in the
past 12 months were mere harbingers.
- In its latest quarterly report, the
Bank for International Settlements (BIS) warns that the credit crisis could
lead world economies into a crash on a scale not seen since the 1930s.
- The Royal
Bank of Scotland has advised clients to brace for a full fledged crash in global
stock and credit markets over the next three months as inflation
paralyses major central banks.
You know the risk for a 'mother of all great depressions' is real when normally
cheerful bankers start to openly warn about a global crisis.
Time to recite the old adage: "The one who panics first wins!" Thanks
for publishing a great blog. Regards, - Alain
JWR Replies: Here is one more article to add to your list:
Paulson & Co.
Says Writedowns May Reach $1.3 Trillion
I have been raising
red flags ever since the global credit market collapsed in the
summer
of 2007.
As I've
mentioned
before,
credit
used to be the lubricant of the global economy, but in recent years
credit has become the prime
mover of the economy. The nascent recession cum depression
could be very,
very bad. If you haven't done so already, get your logistics squared
away. And if you don't already live at your retreat, the vast majority of
what you
need should be pre-positioned there, muy pronto.
