Monday, June 23, 2008

If the Fed doesn’t raise rates soon they, "could trigger another 'catastrophic' event,"

If the Fed doesn’t raise rates soon they, "could trigger another 'catastrophic' event," continues a Morgan Stanley report in the same spirit.

"We see striking similarities between the trans-Atlantic tensions that built up in the early 1990s and those that are accumulating again today. The outcome of the 1992 deadlock was a major currency crisis and a recession in Europe… Painful macro adjustments are likely to take place. Pegs to the euro could be questioned."

Man… words like “nasty,” “panic,” “catastrophic,” “crisis” and “painful.” Not your typical snorefest banking forecasts. Sounds like the Mogambu Guru has picked up some attentive new readers (ANRs).

No comments: