Självaste Alan Greenspan erkänner nu att det finansiella systemet är ur funktion. I ett kort filmklipp från en intervju ger han sin syn på varför vi inte har inflation och hur allting kan vända så fort de långsiktiga räntorna börjar gå upp.
There is no doubt that the federal funds rate can be fixed at what the Fed wants it to be but which the government has no control over is long-term interest rates and long-term interest rates are what make the economy move. And if this budget problem eventually merges to the point where it begins to become very toxic, it will be reflected in rising long-term interest rates, rising mortgage rates, lower housing. At the moment there is no sign of that because the financial system is broke and you can not have inflation if the financial system is not working.
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Källor:
http://www.zerohedge.com/article/alan-greenspan-financial-system-broke
Detta säger allt om situationen för Grekland just nu.
The whole world is fully aware that Greece is done, and now even the traditional long-term holders have thrown in the towel: the entire Greek curve has melted up more than our own S&P – Bloomberg now notes that even US accounts whose risk memory is non-existent, may not be willing buyers of Greek debt. What’s worse Greece is out of diplomatic and political ammo – the CDS scapegoating is finished, which is quite ironic – as shown below CDS are lagging Bund spreads by an unprecedented amount. This implies, as we have claimed all along, that CDS were never the marginal driving force in the spread explosion, but that it all came from cash selling. Additionally, the paradox is that the inability and unwillingness to hedge has left cash spreads blowing in the wind – now virtually nobody is willing to trade in Greek CDS, so Greece has once again shot itself in what is left of its feet. Of course Greece can join the SEC in blaming the shorts, but that’s an old tune. And to top it all off, G-Pap has repeated that the EU/IMF support deal ”has been a great success and the situation is manageable.” Don’t tell that to shareholders of the National Bank of Greece whose stock is down 10% in just two days. And the biggest and most supreme irony, bankingnews.gr reports that Greece is now seeking emergency capital from Abu Dhabi and other Arabic sources… As if they didn’t have a Dubai of their own.
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