Nouriel Roubini (NR), "makes the old Dr. Doom, bond pessimist Henry Kaufman, look like Dr. Phil. No mincer of words. Roubini thinks a full-blown panic will scorch the global economy. ... 'Cash is king in 2008,' says Roubini. ... Banks got hooked on off-balance-sheet entities like structured investment vehicles, which Roubini calls the 'shadow banking system.' But the shadow system has no access to the 'lender of last resort' support of central banks. When the banks tire of bailing out their SIVs, holders of SIV paper will have losses", Forbes, 25 February 2008.
I disagree with NR again. "Cash is trash", inflation's coming. As to bailouts, by hook or by crook, the banks will be able to discount SIV paper with the Fed. Bet on it.
3 comments:
I disagree with NR again. "Cash is trash", inflation's coming. As to bailouts, by hook or by crook, the banks will be able to discount SIV paper with the Fed. Bet on it.
I agree, I wish I was in the scrap copper business. Cash is king? Whose cash? What a joke.
It's funny you mention scrap copper. I have a client here in Houston in that business. It is minting money.
Hello i.a.,
I notice the scrap metal guy where I go is in no hurry to sell. The stuff is piling up all over the place.
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