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Topic: Financial tsunami upon us
| Author | Message |
| UGoGirl | Posted – 12/14/2007 9:01:16 AM | show profile Wow, this "wall street veteran" is even more pessimistic than I am! (Of course on the other than you have talking heads talking about an orderly slowdown...). Guess we'll find out as this unfolds ... in the meantime if what is he says is true no one will go untouched. **** Schultz sees an apocalypse now Commentary: Veteran editor declares 'A financial tsunami is upon us' Schultz must feel like he's been resurrected. Systemic financial fears, dollar doubts, gold gains, seeping stagflation - a word Schultz claims he coined - all eerily replicate the 1970s, which he began as a derided crank and ended victorious over the financial establishment. (After which, significantly, he was notably quick to say the storm had passed). Shultz's latest letter, just in, is absolutely apocalyptical: "A financial tsunami is upon us," he says, caused by lax credit and complications introduced by Wall Street's derivatives craze. Among other interesting ideas raised by Schultz in his intense, somewhat terrifying introduction: recession, possibly depression; bank failures; exchange controls; housing prices down by 50%; credit card company failures; money market fund dangers; tripling of U.S. jobless numbers; federal bail-outs for Fannie Mae and Freddie Mac. His advice, translated out of his shorthand style: "If you have not already done so, take immediate measures to safeguard your assets against the global derivative crisis ... Most urgent is close out time deposits, buy non-U.S. government bonds." MarketWatch |
