Goldman Sachs Chief Economist: “There Are Going to be Dead Bodies Around When This Is Over”
March 8th, 2007Ahhyep.
Via: Telegraph:
The global currency storm of the past week is starting to infect the corporate bond markets and may prove harder to contain than last year’s May sell-off, Goldman Sachs has warned.
Jim O’Neill, the bank’s chief global economist, said investment firms playing the “carry trade” had been caught on the wrong side of huge leveraged bets against the Japanese yen.
“There has been an amazing amount of leverage on currency markets that has nothing to do with real economic activity. I think there are going to be dead bodies around when this is over,” he said. “The yen carry trade has reached 5pc of Japan’s GDP. This is enormous and highly risky, as we are now seeing.”
Stock markets around the world continued to slide as investors scrambled to liquidate bonds, equities and weaker currencies across the board. Japan’s stock market slumped 3.3pc, with falls of 3.7pc in India, 4.6pc in Malaysia and 4.7pc in Moscow, where oil and commodity shares tumbled on fears of a global slowdown.
Research Credit: Life After the Oil Crash
He is not speaking figuratively.
I think he was. Think of stock brokers jumping out of windows in 1929.
Umm, that is “not figuratively”.
And 1987.
Must read:
http://www.atimes.com/atimes/Global_Economy/IC09Dj02.html
“The inaugural session of the Gold Standard University was successfully completed at the Martineum Academy in Szombathely, Hungary, last month.”
And even more decomposing bodies will be heading for the financial graveyard when this
http://www.azcentral.com/business/articles/0304biz-wallstreet0304.html?ref=moneyfiles.org
occurs.
Related: Al Gore plays humanity like a fiddle for his Handlers, while They set the world economy ablaze with a conflagration called debt.
http://www.suntimes.com/news/steyn/281949,CST-EDT-STEYN04.article