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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe World Economy Is a Ticking Time Bomb (and The Fuse is Burning)
Respected economist John Kay is about to make a public statement which essentially says that the world economy is a ticking time bomb and global markets are a lit fuse. Kay is a professor at the London School of Economics, a columnist for the Financial Times, and the author of a widely-read report on stock market flaws which was commissioned last year by the British government.
Prices are driven to silly levels, Kay says, but everyone makes a load of money in the meantime, and then you get a correction.What is known as a correction in financial parlance is better understood by most people as a recession or depression resulting in lost jobs, wealth, health, and security. The lords of finance have been disarmingly frank about this money-making strategy at times.
We actually benefit from downturns, JPMorgan Chase CEO Jamie Dimon told investors earlier this year. After the 2008 crisis Dimon told reporters he had explained downturns to his seven-year-old daughter by saying theyre something that happens every five to seven years.In case you havent been counting, the last crisis occurred five years ago.
Many financially sophisticated investors and bankers will say privately that they agree with Prof. Kay that its only a matter of time until the next crisis comes. Why do they do it, then? Chuck Prince, the ousted CEO of failed megabank Citigroup, probably put it best of all. As long as the music is playing, he said of the run-up to the last downturn, youve got to get up and dance.
Prices are driven to silly levels, Kay says, but everyone makes a load of money in the meantime, and then you get a correction.What is known as a correction in financial parlance is better understood by most people as a recession or depression resulting in lost jobs, wealth, health, and security. The lords of finance have been disarmingly frank about this money-making strategy at times.
We actually benefit from downturns, JPMorgan Chase CEO Jamie Dimon told investors earlier this year. After the 2008 crisis Dimon told reporters he had explained downturns to his seven-year-old daughter by saying theyre something that happens every five to seven years.In case you havent been counting, the last crisis occurred five years ago.
Many financially sophisticated investors and bankers will say privately that they agree with Prof. Kay that its only a matter of time until the next crisis comes. Why do they do it, then? Chuck Prince, the ousted CEO of failed megabank Citigroup, probably put it best of all. As long as the music is playing, he said of the run-up to the last downturn, youve got to get up and dance.
http://www.commondreams.org/view/2013/06/05-5
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The World Economy Is a Ticking Time Bomb (and The Fuse is Burning) (Original Post)
octoberlib
Jun 2013
OP
Egalitarian Thug
(12,448 posts)1. K&R The only sure way to win is to own the casino. n/t
bvar22
(39,909 posts)2. The Global 1%, their bought politicians of BOTH Parties,
and Wall Street has this game down pat,
and will continue feeding off of the Working Class until somebody stops them.
I had some hopes in 2008,
but turns out, he was a player too.
socialist_n_TN
(11,481 posts)3. This should NOT be a surprise to anybody......
boom and bust cycles have been part of the system of capitalism as long as it's been in existence. It's a primary way money is funneled up to the top.