Dominoes
September 11, 2008
Thinking back over the big victims of what has come to be “the credit crunch,” institutions like Northern Rock, Bear Stearns, Fannie Mae, Freddie Mac and, who knows, maybe Lehman Brothers and Washington Mutual, I cannot get the lyrics of a song out of my head.
We didn’t start the fire, no we didn’t light it, but we tried to fight it. -Billy Joel
Government and central bank officials have actually been rather innovative in their efforts to cauterize the wound, yet it keeps spreading. I wondered if anyone thirteen months ago at the start had anticipated just how high up and entangling this crisis would prove to be. And then I found it, an article authored by Jim Willie in The Market Oracle on August 9, 2007. Many predictions in this piece either have come true, or are moving that way. Mr. Willie did not anticipate the dollar’s upward correction that is happening now, but the whole story of this crisis is not yet complete. In the end, the article looks for confidence in the Fed, U.S. Treasury and the dollar to be severely damaged.
Tags: Dollar
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