Crisis or “Semi crisis” – what does that mean for the mortgage market?
by Tom on September 16, 2009
in Market Musings, banks
Here’s my take on things:
- The market has recovered too far too fast for what’s happening in the financial world. It’s not justified.
- There will be some adjustments to that at some point.
- If the adjustments (a downturn) in the market are relatively minor, it will help interest rates because money will move from the stock market to the bond market.
- If it’s a nasty “Sept. 2008″ type of event, we could see people move money from the stock market and the bond market into cash. That would not be good for interest rates.
I was talking to my good friend, Jeff Brown, about it the other day and he asked me, “What do you think are the odds of a truly nasty meltdown happening within the next 3 to 9 months?”
My answer, “30 to 40%.”
Tom Vanderwell
Jim Rogers: I Expect a Currency Crisis or Semi-Crisis | The Big Picture
The current recovery is just a consequence of the fact that consumption fell so dramatically in 2008 and people have to buy things they need in 2009, Rogers told “Worldwide Exchange.”“How can the solution for debt and consumption be more debt and more consumption? How can that be the solution to our problems?,” he said.
“I would expect there to be a currency crisis or a semi-crisis this fall or next year. It’s crony capitalism, Bernanke and Greenspan have brought crony capitalism to America … but that’s not going to solve the world’s problems,” Rogers added
