Alex Trias

Preserving Wealth During the Global Banking Crisis

Exceptional summary, which correctly points to the international scope of the credit crisis. Simply stated, the issue at this point is how world governments address the negative feedback loop created by a global recession on the one hand, and the destruction of asset values on the other hand. The main culprit in the destruction of asset values is the force of trading momentum. Generally, it is impossible to stand in the way of trading momentum. The only solution is, simply, to make trading impossible. I wonder whether we may see a wave of public traded banks going private - perhaps through a combination of government ownership and ownership on the part of bank management. I would also not be surprised if various ultra-short ETFs were de-listed in the not so distant future.