Thursday, November 17, 2011

The Next Financial Crisis Will Be Hellish


The Next Financial Crisis Will Be Hellish, And It’s On Its Way -- Addison Wiggin, Yahoo News/Forbes

"There is definitely going to be another financial crisis around the corner," says hedge fund legend Mark Mobius, "because we haven't solved any of the things that caused the previous crisis."

We're raising our alert status for the next financial crisis. We already raised it last week after spreads on U.S. credit default swaps started blowing out. We raised it again after seeing the remarks of Mr. Mobius, chief of the $50 billion emerging markets desk at Templeton Asset Management.

Speaking in Tokyo, he pointed to derivatives, the financial hairball of futures, options, and swaps in which nearly all the world's major banks are tangled up.

Read more
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My Comment
: Something to think about while you are digesting your lunch. And while US officials are saying there is nothing to worry about .... others are not so confident.

The Governor of The Bank of England agrees (somewhat) with my assessment.

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