Link to original article, January/February 2012, Martin Feldstein, The Council on Foreign Relations
The euro should now be recognized as an experiment that failed…. The adverse economic consequences of the euro include the sovereign debt crises in several European countries, the fragile condition of major European banks, high levels of unemployment across the eurozone, and the large trade deficits that now plague most eurozone countries.
Link to original article, June 2, 2012
The head of the World Bank, Robert Zoellick, warns:
- Financial markets face a rerun of the Great Panic of 2008.
- “It is far from clear that eurozone leaders have steeled themselves” to create “euro-sovereign” guarantees of bank recapitalization, which is likely necessary to prevent progressive crumbling of the eurozone.
- “Events in Greece could trigger financial fright in Spain, Italy and across the eurozone. The summer of 2012 offers an eerie echo of 2008…. If Greece leaves the eurozone, the contagion is impossible to predict, just as Lehman had unexpected consequences.”
- “There will not be time for meetings of finance ministers to discuss the outlook and debate the politics…. In panicked markets, investors flee to safe assets, sparking other flames.”
Link to original post, December 1, 2011 in WSJ.com blogs
The world financial system not only isn’t functioning, it’s on the brink of collapse, according to investor George Soros.
The current global financial system is in a “self-reinforcing process of disintegration,” Mr. Soros warned, and “the consequences could be quite disastrous. …”
Link to original article, January 11, 2012 in The Guardian
Albert Edwards, head of strategy at Société Générale and one of the UK’s leading “bears”, said the next 12 months would be the “final year of pain and disappointment”.
Predicting a sharp slowdown in activity in the world’s fastest-growing emerging economy, Edwards said: “There is a likelihood of a China hard landing this year. It is hard to think 2013 and onwards will be any worse than this year if China hard-lands.”
Link to original article, January 25, 2012 in The Daily Mail
Billionaire investor George Soros has warned the global economic system could collapse and riots on the streets of America are on the way.
The 81-year-old said he’d rather survive than stay rich as the world faces an ‘evil’ period and Europe fights a ‘descent into chaos and conflict’.
He has backed the euro, bought $2billion in European bonds and insisted the economic climate is similar to the 1930s Great Depression.
Link to original article, June 1, 2011 on Forbes.com
“There is definitely going to be another financial crisis around the corner,” says hedge fund legend Mark Mobius, “because we haven’t solved any of the things that caused the previous crisis.”
We’re raising our alert status for the next financial crisis. We already raised it last week after spreads on U.S. credit default swaps started blowing out. We raised it again after seeing the remarks of Mr. Mobius, chief of the $50 billion emerging markets desk at Templeton Asset Management.
Speaking in Tokyo, he pointed to derivatives, the financial hairball of futures, options, and swaps in which nearly all the world’s major banks are tangled up.
Estimates on the amount of derivatives out there worldwide vary. An oft-heard estimate is $600 trillion. That squares with Mobius’ guess of 10 times the world’s annual GDP. “Are the derivatives regulated?” asks Mobius. “No. Are you still getting growth in derivatives? Yes.”