Cooperating To Solve A Problem
During the week, I caught the following excellent interview, shown at Lateline Business on ABC TV here in Perth. In the right hand column, you can select to watch that interview on video.
I loved several of the things that she had to say, including…
“I believe they’re not in trouble at all, it’s just that investors are suddenly panicking and it’s a knee-jerk reaction.”
“We’ve got to point out that this economy is nowhere near comparable to the Depression economy, in which there was a 75 per cent fall in profits and interest rates were increased.”
“And what we’re seeing is rapid deleveraging, panicking by small investors, but also hedge funds caught with their pants down.”
“Any of those funds that are in trouble is due to their own risk management, which would have been declared in the trust deed that they were going to invest in certain sort of securities.”
“I don’t see a recession; when I went to Bunnings it was packed. When I go to restaurants it’s packed; when I go to the Blue Mountains it’s packed. I’ve come back from America; I saw not one sign of recession there. There is no need to panic. We have a strong world economy that’s cooperating to solve a problem…”
As an aside, take a peek at Dr. Carolyn Currie’s credentials at her site, and I’d say she knows a little of what she is talking about! 
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