Most economists you meet or read tell you that the US problem is worse – much worse- than the Euro problem. Many of us think that the Americans have pushed the dollar too far and it has to fail.
The American debt, the American bank’s date and the NINJA credit cards, NINJA educational loans, etc. have not yet hit. Once all this hit, the so called American growth story will vanish.
The US Gilts and T Bills cannot permanently be at 2% p.a. when inflation in the US is at 5%p.a. – this is not GROWTH, this is just a realistic adjustment to the helicopter Ben’s reckless QE and printing…:-)
Gold cannot keep going up if Americans start selling – simple.
The Chinese Real Estate bubble will also take its toll on the Chinese banking….
ULIPs will come home to roost on the balance sheets of life insurance companies (it is difficult to imagine how many proposals are being surrendered BECAUSE they are 5 years old! So all that assumption of 30 years premium is a nightmare gone absolutely wrong.
The Pound and the Euro will have to get realistic about what is happening in Europe and UK in particular…
The Japanese story is still not fully understood….
What is a bubble?
When the runaway valuation is not backed by cash flows to sustain it at meaningful levels, it is a bubble…now will somebody tell me why these are not bubbles please?
Post Footer automatically generated by Add Post Footer Plugin for wordpress.