Markets Braced for the Worst (telegraphUK)

[katty]

Markets braced for the worst
By Ambrose Evans-Pritchard (Filed: 15/05/2006)


excerpt:

http://www.telegraph.co.uk/money/main.jhtml;jsessionid=OHHRTBUEOA4CFQFIQMGCFF4AVCBQUIV0?xml=/money/2006/05/15/cnmarkets15.xml

"Stock markets in the middle of 2006 are confronting a tight Federal Reserve and European Central Bank, sharply higher bond yields, and a downswing in potential profits," it said.

It raised the risk of "an impending financial crisis" caused by excess credit and leverage across the global economy. The group advised investors to liquidate stocks and move into cash yen until the storm has blown over.

The dollar has slumped 6pc against the euro and 8pc against the yen this year as the markets anticipate an end to interest-rate rises by the US Federal Reserve, switching attention back to America's debt mountain and current account deficit of 7pc of GDP.

Volkmar Hable, chairman of Samarium Technology, said the world was now on the brink of a dollar crisis.

"The crash in the autumn of 1987 started with a massive dollar and bond decline in the spring. We are experiencing exactly the same now," he said.

Ominously, bonds are no longer viewed as a safe haven, a sign of fear that inflation is gaining a foothold in the major economies.

[Trajan]

1. I know this is not terribly relevant, in this case ....

But didnt I just read something about this Reporter ? ... VERY Anti-Clinton fella, from what I recall ... Like I said: Not relevant here, but got my attention ....

The Telegraph was(is?) a Neocon mouthpiece .... so given the negative aspect of this story, not being favorable to the Neocon's in power, we can probably accept that this is a REAL issue, and causing consternation, even amidst the jackboot-sucking sycophants in the right wing ....

[katty]

2. well is hard to super 'skew' market warning bells-although

faux news would certainly try!

[11cents]

3. Evans-Pritchard is a disgusting person.

He was one of the main disseminators of the Vince Foster stories during the Clinton administration, working hand-in-glove with the Scaife operatives. A liar and a con-man.