[lbo-talk] Henwood vs Bond

[Marvin Gandall]

Sure, it's just that this capitalist cat has had so many lives and we've
cried wolf so often, that I've taken to adding "if" to "when" whenever the
subject of breakdown comes up. That was Doug's point also, and then the FT
piece citing the IMF study came along as a reminder to, ahem, hedge our
bets. But not too bend the stick back too far: when the Fed, SEC, Buffet et
al openly fret about Deutsche Bank becoming a giant "hedge fund", Fannie Mae
's exposure, the mountain of consumer debt, and the "unsustainable" US
current account deficit, who are we to be complacent? Still, this isn't my
field - I've already strayed far enough - and I'd appreciate, Patrick, if
you or someone could provide me with a good explanation of why China and the
US can't maintain their symbiotic trade and credit relationship for a long
time yet. How CAN China and the other Asian central banks afford to dump the
dollar? Not to keep plumping the FT, but Martin Wolf also had an interesting
piece on this subject a week or so ago.

Marv Gandall

----- Original Message -----
From: "Patrick Bond" <pbond at sn.apc.org>
To: <lbo-talk at lbo-talk.org>
Sent: Wednesday, September 08, 2004 2:42 AM
Subject: Re: [lbo-talk] Henwood vs Bond


> ----- Original Message -----
> From: "Marvin Gandall" <marvgandall at rogers.com>
> > ------------------------------
> > (From today's Financial Times, a caution directed at both the Austrian
> > school on the right and the Marxist left who are again anticipating the
> > popping of the latest bubble -- this time,in US real estate -- will
result
> > in a financial crisis and depression. The right looks to such "creative
> > destruction" as a necessary condition for regenerating capitalism; the
> left,
> > for the development of a mass movement aimed at its overthrow.
Keynesians
> > like Posen expect the fallout to be managed and contained - again.)
> > Bubbles are getting blown out of all proportion
> > By Adam Posen
> > Financial Times
> > September 7 2004
>
> Marvin, isn't the latest bubble - the massive increase in global hedge
> financing, according to the new BIS report - even more worrying? Some of
> Bloomberg's talking heads even attribute the oil price hike to herd
> trading...
>
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