«-- Note from JWR: | Main | Odds 'n Sods: --»
Jim's Quote of the Day:
"The world is not going back to normal after the magnitude of what they
have done. When the dust settles this will either work, and the money they have
pushed into the system will feed though into an inflation shock. Or it will not
work because too much damage has already been done, and we will see continued
financial deterioration, causing further economic deterioration, with the risk
of a feedback loop. We don't think this is the more likely outcome, but as each
week and month passes, there is a growing danger of vicious circle as confidence
erodes.
This will lead to political instability. We are already seeing countries on
the periphery of Europe under severe stress. Some leaders are now at record
levels of unpopularity. There is a risk of domestic unrest, starting with strikes
because people are feeling disenfranchised. What happens if there is a meltdown
in a country like Pakistan, which is a nuclear power? People react when they
have their backs to the wall. We're already seeing doubts emerge about the
sovereign debts of developed AAA-rated countries, which is not something you
can ignore." - Tom Fitzpatrick, CitiBank's chief technical strategist,
as quoted
by The London Telegraph in November 2008
