Friday, October 24, 2008

A Little Doom with Your Morning Tea?

Now that a "once-in-a-century credit tsunami" has hit, "those of us who have looked to the self-interest of lending institutions to protect shareholder's equity (myself especially) are in a state of shocked disbelief," says Alan Greenspan.

"We've reached a situation of sheer panic," says Nouriel Roubini in a Bloomberg article. Roubini is a leading economist who predicted the current financial crisis in 2006. "There will be massive dumping of assets" and "hundreds of hedge funds are going to go bust." Roubini continues, "Don't be surprised if policy makers need to close down markets for a week or two in coming days. " He goes further: "Things will get much worse before they get better. I fear the worst is ahead of us." (UPDATE 9AM: It has started happening.)

Brilliant thinker Nassim Nicholas Taleb suggested on PBS's NewsHour that we might be entering the "most difficult period since--not since the Great Depression; since the American Revolution. He continues, "I hope I'm wrong. I wake up every morning--actually, I don't wake up every morning now. I've started to wake up at night the last couple of weeks hoping that I'm wrong, begging to be wrong. I think that we may be experiencing something that is vastly worse than we think it is." (Video here.)

Time for another cup. Make it a strong one.

7 comments:

Sheepish Annie said...

I'm looking at the bright side. I'm a single school teacher who never had much to begin with. Now I'll have all kinds of company!

It's that or I just have to stop thinking about it too much. What a mess!!!

The Purloined Letter said...

Yep--we don't have a lot in either, but there is something about a trainwreck in progress that is hard not to watch, even if you and your loved ones aren't actually in the way. Thanks for your comment. Makes me feel better!

The Tell Tale Heart said...

I think it is time to crack open the liquor cabinet. Martini with dinner?

Carrie K said...

Ah, but it would certainly be interesting. I don't think anyone is going to be safe from the trainwreck though if it really goes off the track. Desperate people lead to desperate measures and threatened people don't think clearly.

William Cooney said...

I don't feel so well.

Donna Lee said...

I don't have much either and figured I'd have to work until they carry my body out the door. This seems so big it can't help but affect all of us and try as I might to stay out of the way of the train, I feel like it's swerving towardsme.

Green Bean said...

I think we are, as a culture, moving (being forced to move) in a new direction. Change can be hard. But I believe that this change is needed and will ultimately work out.

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