The Dollar Crisis Will Soon Trigger a Global Investment Crisis(3)

Likewise, current U.S. Fed Reserve Chairman Ben Bernanke explained his deep 0.50% rate cut on September 18th with the following statement:

“We took the action to try to get out ahead of the situation and try to forestall (emphasis mine) potential effects of tighter credit conditions on the broader economy.

The resulting global financial losses have far exceeded even the most pessimistic estimates of the credit losses on these loans.”

Yet all the permabulls applauded the rate cut as the end to all the subprime credit woes with massive triple-digit rallies in the DJIA.

In fact, think about how many times in just the past couple of weeks that you've read headlines stating that the subprime credit fiasco has bottomed out?



By J.S Kim