Thursday, May 31, 2012

Wow. Are we this far along?

Raoul Pal of the Global Macro Investor isn't beating around the bush. He sees hard times ahead. But not as far ahead as you might suspect:
We have around 6 months left of trading in Western markets to protect or make enough money to offset future losses.  
Spend your time looking at the risks of custody, safekeeping, counterparty etc.  
Assume that no one and nothing is safe. After that……we put on our tin helmets and hide until the new system emerges.
The source document for the quote and additional bio data for Pal is posted tonight at Zero Hedge.

If Pal is right, we're about to run out of road to kick the can down. And the can's so beat up, it's not much good for kicking anyway. Governments and central banks may draw things out longer than many suspect they can. But even a cursory look at what's going on should suggest that current economic models simply aren't sustainable. A more to-the-point assessment might be to say the system's broken. And sooner or later, broken things stop working entirely.

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