Fx_Gold
2007-Dec-28, 08:56 AM
Hi http://www.friendlytraders.com/forum/../forum%28ysw%29/images/smilies/smile.gif
One explanation for this seeming anomaly has been offered by George Friedman, CEO of Stratfor. (Stratfor, short for Strategic Forecasting, focuses on analysis and forecasts of geopolitical, economic, security and public policy issues.)
Although one may quibble with some points, Friedman's analysis is certainly thought-provoking and worthwhile spending a few minutes on.
The most bizarre aspect of today's global economy is what has not occurred. In 1979, oil prices soared to slightly more than $100 a barrel in current dollars, and they are approaching that historic high again. Meanwhile, the subprime meltdown continues to play out. Many financial institutions have been hurt, many individual lives have been shattered and many Wall Street operators once considered brilliant have been declared dunderheads.
Despite all the predictions that the current situation is just the tip of the iceberg, however, the crisis is progressing in a fairly orderly fashion. Distinguish here between financial institutions, financial markets and the economy. People in the financial world tend to confuse the three. Some financial institutions are being hurt badly. Those experiencing the pain mistakenly think their suffering reflects the condition of the financial markets and economy. But the financial markets are managing, as is the economy.
One explanation for this seeming anomaly has been offered by George Friedman, CEO of Stratfor. (Stratfor, short for Strategic Forecasting, focuses on analysis and forecasts of geopolitical, economic, security and public policy issues.)
Although one may quibble with some points, Friedman's analysis is certainly thought-provoking and worthwhile spending a few minutes on.
The most bizarre aspect of today's global economy is what has not occurred. In 1979, oil prices soared to slightly more than $100 a barrel in current dollars, and they are approaching that historic high again. Meanwhile, the subprime meltdown continues to play out. Many financial institutions have been hurt, many individual lives have been shattered and many Wall Street operators once considered brilliant have been declared dunderheads.
Despite all the predictions that the current situation is just the tip of the iceberg, however, the crisis is progressing in a fairly orderly fashion. Distinguish here between financial institutions, financial markets and the economy. People in the financial world tend to confuse the three. Some financial institutions are being hurt badly. Those experiencing the pain mistakenly think their suffering reflects the condition of the financial markets and economy. But the financial markets are managing, as is the economy.