Thursday, January 3, 2008

When this malaise is over who will be controlling wealth?

Insight: Post credit bubble wealth transfer will beggar belief

"There are few safe bets in currency markets, but in Europe the nearest thing to one is that sterling, attached to a debt-sodden UK economy afflicted with larger financial imbalances than the US, will sink." "For western politicians to complain about the loss of crown jewels is special pleading of a particularly invidious kind. For there is a marked similarity in what is happening today to what happened in the 1997-98 crisis in Asia. Then hot money from western banks exacerbated financial bubbles and inflation across the region. When the hot money pulled out, more stable western funds snapped up Asian assets on the cheap."

Posted by happyrenterz @ 08:56 AM (766 views)
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2 thoughts on “When this malaise is over who will be controlling wealth?

  • The under 40s are enslaved to a life of financial serfdom by the UK banks, then in term the UK banks are enslaved into financial serfdom by far eastern banks. Seems to be a strange moral justice in it.

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  • The US and UK are going through a repeat of the Asian debt crisis of 1998, though this time the Asians are the creditors. And it seems to be these Asian creditors who are meant to suffer the loss in President Bush’s rate freeze plan for sub-prime mortgages.

    If so, what foreign lender will dream of lending into the US mortgage market?

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