So the end of our economic world is near. UBS and the likes are publishing numbers that the common of mortals can’t even conceive – and it seems that the losses are far bigger than any past quarter benefits results we ever had in the past. 37 billion $ subprime losses for UBS now. Lehman brothers is asking for a raise of 4 billion $ to re capitalize. Societe Generale hasn’t been able to reach the amount it was looking for after the amazing exploit of its star trader Jerome Kerviel. And let’s not talk about the common people who not only end up with a galoping inflation at every level – food, energy and taxes for the ones living on another planet- but still have to pay mortgages that they were most of the time barely able to repay in the first place. Are we having fun here or is it just the beginning of the fun? Central banks are injecting billion in a system meant to become extinct anyway. London city house prices are falling as well as US ones or Spansih ones. Europe struggles with higher prices as well as China. The Fed might end up regulating the system but even a purge will not make the bad mortgages go away so easily. Recession is near say our officials, pulling desperately an alarm that has run out of battery. The markets in the meanwhile play the yo yo, playing hope on the darkest predictions and numbers and taking profits as soon as the sun shine. I hear traders being blamed for the end result. But the truth is that we all are. The cheap credit? Between the bank who liberally lended money to anyone without discrimanation to the same ones who thought that a third tv, holidays in Majorca and silicon breast were a necessity, who is more to blame? From central banks to Warren Buffet who used interest rates to boost an economy in need of a correction to the people in the street who are convinced that they deserve better because they never set a foot in Africa, who is more responsible? From an era of after war where it became a rule to have rights before duties, who’s guilty?
Now the cheap life has come to with a hidden hefty price tag as well as the ozone layer is in need of a patch. Tomorrow looks bleak indeed and no one really knows for sure where we ‘re going or- for that matter- how it is going to end. My wild guess is that we have to brace ourselves and be ready for sacrifice because despite our wonderful new technologies and abilities man has still desires of grandeur that can’t always be fulfill.
I predict that we may have a few more months of turbulences and maybe even of small victories in the markets, but as everybody should know ” la roche tarpeienne est proche du Capitole” . For the English speaking only, the higher the climb, the harder the fall.

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