Since the Global Economy is completely interlaced and interdepen
dent, I view what is currently occurring as the European Phase of the crisis. Still on deck is the Asian Phase, led by a downturn in China. The Asian Phase will lead to the American Phase Part Duex. The foundation of this problem is the misinterpr
etation of a global economic model of distribute
d, and compartmen
talized risk. The erroneous assumption that risk had been mitigated, coupled with the foolhardy deregulati
on of the Financial Sector in the US, that came to a head at the end of the Clinton Administra
tion with the repeal of Glass-Stea
gall and the "Black Boxing" of Hedge Funds, along with the acquiescen
ce of Finance Ministers across the globe in accepting the redefined, post-risk economic model, has led us to a point where all economic interventi
ons performed at upper official levels are merely gimmicks to postpone the ultimate global capitulati
on that must occur when there is so much fabricated wealth saturating the global economy.
When a couple of months back it came to light that TBTF Banks were in a process of migrating their massive derivative
s holdings from their investment banks to FDIC backed accounts in their Commercial Banks to ameliorate concerns of counter parties, in an act of financial alchemy, transmutin
g the lead of notional derivative value to the gold of hard, insurance backed assets, knew we were through the looking glass.
In terms of Europe, and its troubles, we are only seeing delaying actions applied, not resolution
.
Read the Article at HuffingtonPost
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