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Post by unlawflcombatnt on Jul 24, 2007 17:24:57 GMT -6
OECD economist warns of global financial bubbleBy Stephen LongJul 24, 2007 " Dr Blundell-Wignall says the manipulation of the Chinese currency market is one of the distortions fuelling the rolling bubble....
For years there were warnings about a housing bubble in the United States and parts of Australia. Now it has burst in the US, with devastating consequences.
Some argue that private equity buyouts are giving rise to a similar bubble in Australia.
But a senior official from the Organisation for Economic Cooperation and Development (OECD) argues these are all part of one giant bubble that threatens the world economy....
Former Reserve Bank economist Adrian Blundell-Wignall....says there is a 'rolling bubble' of excess money sloshing around the globe, shifting from market to market.
It is being inflated by a series of distortions in the world economy, and unless they are dealt with, he predicts the bubble will eventually burst, with serious consequences.
Dr Blundell-Wignall is part of a diaspora of economists from the Reserve Bank of Australia now working overseas...." The full article can be found at OECD economist warns of global financial bubble
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Post by jeffolie on Jul 24, 2007 17:33:44 GMT -6
If housing prices had collapse, then I would agree. With YOY prices down a mere 2%, the bubble is just leaking. I still opine that the bubble and world economy will take more time to bust wide open, perhaps next summer.
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