Marc Faber: I'm less worried about that [an asset bubble] than this: The five brokerage firms in New York -- Merrill Lynch, Morgan Stanley, Lehman Brothers, Bear Stearns and Goldman Sachs -- paid out $36 billion in 2006 bonuses. Compensation and bonuses together roughly are equal to Vietnam's GDP.
Marc's interpretation of this remarkable statistic was as follows:
I see a bipolar world in which there's the typical household in the U.S. or Western Europe, and then this huge wealth concentration. It will lead to a political backlash one day.
But what about the wider implications for the relationship between the developed and developing world? I'm still processing this.
Interested to hear readers' thoughts -- please leave a comment below.