Dead Men Left

Tuesday, May 16, 2006

Vaguely worth noting

In passing, this one:

US investors are rushing for exits in risky markets across the world, accelerating an ugly sell-off in Turkey, Indonesia, India, Russia, and Brazil...

Mr Bloom [HSBC "currency expert"] said fears of a dollar collapse had been the chief source of contagion spreading worldwide...

"I expect the dollar to fall fast and furious against everything because the point of inflexion has been reached in US interest rates," he said. "If the Fed is not going to keep rewarding me with higher rates for the risk of holding dollar assets, why should I hold them?

"The US is importing $750bn more than it is exporting every year and now has $2,500bn in external liabilities. This is a big call on world savings and it can't go on forever," he added.

This overweening desire for security hardly betokens a system enjoying a glorious renaissance, but you may have guessed that already.