A front-page story in the Wall Street Journal over the weekend reads like spin control as managed by the Federal Reserve: Crises Fall Short Of Going Global‘. This orchestrated sigh of relief reminds one of the scene from Dr. Strangelove when the George C. Scott character, Gen. ‘Buck Turgidson’, offers up a prayer in the War Room when it appears that the U.S. has successfully thwarted an accidental nuclear attack on Russia. Turns out they were wrong: One bomber has actually slipped under Soviet radar, dropping a nuclear payload that would trigger The Doomsday Machine.
Well, it’s true that the financial markets have not collapsed as they did in 2007, notwithstanding the fact that the news from Greece and China has been more than a little worrisome. But to infer that the financial system is in the clear simply because there has not been a panic seems to be inviting trouble. To be sure, the reporters who filed the story, Greg Ip and Jon Hilsenrath, are two of the Journal‘s best. And they do make clear that any number of problems, some of them not even on the banksters’ radar, could set off a financial chain reaction that could have devastating consequences for the global economy and the banking system. But the emphasis is mainly on the “good” story about how well we seem to be coping. So far.
However, one statement in particular, from McKinsey Global Institute spokeswoman Susan Lund, would seem to tempt the Furies. Lund is quoted by the Journal as saying that each of the current problems is localized, “without big international spillover.” As such, she said, they are more like the S&L crisis of the early 1990s than the mortgage collapse of 2008. Oh really? This isn’t quite as fatuous-sounding as Prof. Irving Fisher’s statement, just before the 1929 Crash, that stocks appeared to have reached a permanently high plateau, but it certainly seems like the kind of understatement that Mr. Market loves to trash.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.