The next asset bubble is already beginning to take shape. Will the Double Dip that’s coming next retest the market lows of March 2009?

Germany’s new finance minister has echoed Chinese warnings about the growing threat of fresh global asset price bubbles, fuelled by low US interest rates and a weak dollar.

Wolfgang Schäuble’s comments highlight official concern in Europe that the risk of further financial market turbulence has been exacerbated by the exceptional steps taken by central banks and governments to combat the crisis.

via FT.com / Europe – Germany warns US on market bubbles.

Tweet This Post

The bears get closer and louder…

Governments have already shot their fiscal bolts. Even without fresh spending, public debt would explode within two years to 105pc of GDP in the UK, 125pc in the US and the eurozone, and 270pc in Japan. Worldwide state debt would reach $45 trillion, up two-and-a-half times in a decade…

The underlying debt burden is greater than it was after the Second World War, when nominal levels looked similar. Aging populations will make it harder to erode debt through growth. “High public debt looks entirely unsustainable in the long run. We have almost reached a point of no return for government debt,” it said.

via Société Générale tells clients how to prepare for ‘global collapse’ – Telegraph.

Tweet This Post

Bill O’Reilly: Bill’s Column – Hammering Sarah.

With the possible exceptions of Richard Nixon and George W. Bush, no politician of the modern era has been more derided by the media than Sarah Palin. And the attacks did not stop with her; they included nasty rumors about her family and even the mocking of her children. – Bill O’Reilly

Tweet This Post