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G7 rumours

Posted by Adrian on April 11, 2008

I never report G7 meetings, they are meaningless, just like any ‘friendly’ government get together. It is a place of the clueless elite, with no vision on anything get to waste time. But a rumour has come through that if the credit crisis gets worst (it’s already very bad), globally countries and their poor tax paying citizens will bail out the financial system; meaning the big banks and the worthless junk they carry. Scandalous at even the idea, but it is one idea that will never see the light of day – no governments will cooperate on that,

On the other hand the markets are reading everything in reality and real time. There seems an expedited problem with devaluation of assets, and the one thing the G7 will (should) discuss (with a lot of concern) is global inflation and food/oil shortage; not to forget Global Warming which is going to destroy economic growth more spectacularly than any recession.

The credit market crisis is not even half way through. The next blow up is the credit default swaps, credit card, car and motorcycle, student loans and margin calls on any brokerage firm that borrowed big (namely the Hedge funds).

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