Thursday, October 04, 2007

Reality, or rather the lack thereof, in the financial markets.

AlterNet is a very good source of information - not that I necessarily agree with everything that gets written there, because I don't. But economic trends and workings are so divorced from reality in the neo-con "free trade at all costs" universe that I do now look to liberal writers for some what-should-be common sense writing. This passage caught my eye - it comes from a rather long, older article, but it's still worth reading. Nothing really has changed for the better since July.

The Crash of 1929: Are We on the Verge of a Repeat?
By Scott Thill, AlterNet. Posted July 26, 2007.
Hedge funds have helped create a counterfeit economy that some experts say could lead to another full-blown economic depression.

"We've divorced the system from paper," explained Overstock.com CEO and hedge fund activist Patrick Byrne to me by phone, "and since then it's become easier to divorce it from reality. But the problem is that so much has been drained out of the system using these tools that the money is not there. If this gets exposed, the money is not there. It's been turned into Ferraris and mansions in the Hamptons. It can't be paid back. The system is going to vapor lock."


That's "is" not "might." There's no "if" in this reality, classs - there's only "when."

2 comments:

Pierre Sogol said...

you have some nice chevlei moshiach/peak prep jewish stuff going on! maybe check my page;
harherem.blogspot.com
pierre

Ahavah B. said...

Todah Raba!

I don't think anyone is taking the future seriously, though. It's just shouting into the wind.

Shalom.