Getting very close to the point where things become uncomfortable…

More thought / speculation in the comments at ZH. (mostly read this)

Not only is the yen “benefitting”, but both the pound and euro are moving in the same direction. The implication here is that people are bailing out of the dollar. Anything is considered safer. The fed / treasury must be pretty happy – they are debasing the currency, and things are still holding together. We’d better hope they don’t push this too far.

If you’ve been following the financial blogs (and not the mainstream media…) you’ll know that the mood of relentless optimism over the last couple of months has become increasingly strained. Official statements about ‘green shoots’ are openly ridiculed. YoY comparisons are starting to look good – simply because of the low base, so that’s what’s being churned out. Regardless, a single figure YoY increase, when the measure is down 50%+ from it’s high is not much to get excited about… and often well within the margin of error.

My feeling is still that while the immediate threat of collapse (of the financial system) is now behind us, this is going to grind on and on for years. How seriously you need to take that depends on how prepared you are for a zero growth economy…

The unwinding of the debt mountain is only just getting started.

2 thoughts on “Nervous

Wise words...

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