Monday, July 28, 2008

Has Deleveraging Even Begun?

The serial bubble solution to the problem of prior bubbles and the financial fragilities they spawn has come to a dead end with a third toxic oil bubble the financial authorities did not expect and do not want – the commodity bubble. Now the serial bubblization of the policy makers portends recession, not recovery.....The end of the moon shot in the debt to GDP would appear to be at hand.