Monday, October 31, 2011

Bob Januah Says it like it is...

This latest bailout relies on the market not calling what I see is a huge „bluff‟, because if the market does call it, the bailout simply won‟t be credible or even deliverable. It is instead akin to a self-referencing ponzi scheme, and I can‟t believe eurozone policymakers have even considered going down this route. After all, we all have recent experience of how such ponzi schemes end, and we all remember how eurozone officials often belittled and berated US policymakers for their role in the US housing/CDO/SIV financial bubble. - Bob Januah
He thinks the S&P could go as low as 700…That is to be seen…though I see no reasonable possibility that is could not do so in short order. Additionally, I expect that the S&P could go well south of that if the liquidity crisis expands as it seems likely.

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