The Continuing Credit Crunch

Is it safe to get back in the water yet?
Is Jaws still out there looking for the unwary still swimming in the murky financial waters that led to the credit crunch!

In 2008 Graham Turner and his company provided forecasts to some of the worlds leading banks. In The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis by Graham Turner he also published some of his ideas about how the housing bubbles in the West were deliberately created to mask the damage inflicted by companies shifting production abroad.
He postulated that when these bubbles burst, economic growth in many developed countries would inevitably tumble and that banks and governments may struggle to contain the fallout. ‘As the West slides, these emerging economies will see an implosion of their credit bubbles too, shaking their faith in the free market.’

So How Goes The Credit Crunch now Graham

• Greed continues unabated and forms the basis for many strategic and tactical decisions.
  The haves and the ‘hads’ want more and are unwilling to acknowledge the losses they need to suffer. This maintains house prices at an artificially high level, executive salaries and rewards in the West are still on the high side of excessively greedy, international coruption is unabated and Governments only see power politics as their raison d’etre.
• The evil side of the Murdock media enterprises is gradually being brought into the spotlight. The revelations make one consider how much more evil media is festering away in the likes of the big ITC and internet operations.
• Lenders have constrained the launch of new ‘instruments’ to help rebuild their reserves but there is a sneaky suspicion that a wave of complex ‘unfathomable products’ are on the shelf to launch a new wave of miss-selling (I mean open, clear, understandable customer literate deals.)
• Regulators are still engaged in turf wars and blame-avoidance to the extent that no one has been brought to book and the rewards for failure continue.

Cynical Views from Finance Blog

• If you are still in the dark check out the Credit Crunch Explained
• Do not bank on the US presidential elections any more than you would on the French ones!
• Keep the hatches battened down it aint over until the fat banker is done singing. (Or done time in Sing-Sing)