tag:blogger.com,1999:blog-8078379512095504946.post1470559538217748478..comments2024-03-29T01:07:30.224-07:00Comments on Had Enough Therapy?: Jim Rogers Explains the World's Financial CrisesStuart Schneidermanhttp://www.blogger.com/profile/12784043736879991769noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8078379512095504946.post-26939969388816566352010-12-09T10:22:58.130-08:002010-12-09T10:22:58.130-08:00Thanks, JP, for an excellent concise summary of wh...Thanks, JP, for an excellent concise summary of what went wrong in the world financial system.<br /><br />And a special thanks for bring the Jeremy Grantham article to our attention. Grantham is certainly one of the best guides through the miasma.Stuart Schneidermanhttps://www.blogger.com/profile/12784043736879991769noreply@blogger.comtag:blogger.com,1999:blog-8078379512095504946.post-4646563251966960282010-12-09T09:24:21.376-08:002010-12-09T09:24:21.376-08:00Well, if you want a brief explanation of some aspe...Well, if you want a brief explanation of some aspects of the financial mess...<br /><br />1) The expansion of the economy for the past several years has been based on fraud. Basically, everyone of any importance in the housing fiasco lied about just about everything that matters. Since fraud is directly counter to actual reality, this is causing major problems like any other historical mass delusion. Bush and Obama have decided to solve the problem by bailing out the people who perpetrated the fraud. This is making people angry.<br /><br />2) The industrial/post-industrial world has too much soverign debt. This is eventually going to cause a major fiasco that will make 2008 look like a walk in the park. No one really knows whether Japan, the U.S., or the EU is going up in flames first, but someone's soverign debt is going to die and go to soverign debt heaven.<br /><br />3) Bernake is not really helping much at all. He's a mixture of cluless and delusional. He's currently involved in a naturalistic experiment of some kind that, like Greenspan, will result in another major crisis, which could be related to #2 or could be a completely separate mess. Basically because that's what the Fed has done since Greenspan took over. If you a good description of what is happening in Fed-land, you can read Jeremy Grantham's "Night of the Living Fed" over at www.gmo.com.JPhttps://www.blogger.com/profile/11126071014909954387noreply@blogger.com