pseudonym888

Does Paulson's Lie Matter?

This post is a little milquetoast-y.

As far as I'm concerned, there isn't going to be an economic recovery. What's we're witnessing is the deterioration of the debt market, of the shadow system that props up international finance. I like to think of the debt market as - black matter. If the volume of black matter in the universe retreats below a certain threshold, the universe implodes. So it goes with international finance.

The unwinding of real estate speculation is destroying the debt market. Then there's also the matter of deleveraging. People talk about this all the time. I was talking about it almost a year ago, saying to anyone who would listen: 'Deleveraging caused the 1929 crash, and now the financial markets are -as- leveraged, if not more so, than in the 20s.'

In conclusion, the credit crisis will be like the war on terror: endless and escalating.