Oh, how I long for the good old days - when I was the only one (on Raging Bull... but I'd have gotten the same response almost everywhere else) saying that debt was bad.
I remember their reasoning like it was yesterday: "Oh, but De: Debt allows so many GOOD things to occur!"
Yeah. Sure. So do steroids."
It's kind of boring now that the mainstream press has finally started talking about it. Pretty soon, even liberals will be mouthing it (without any real understanding.) And where will that leave ME??? Foraging for another shocking yet obvious "truth," ten years before of its time. *sigh*
IMF chief: Advanced economies crushed by debt
By Jennifer Liberto @CNNMoney
September 15, 2011: 10:26 AM ET
Christine Lagarde, director of the IMF, says debt is crushing
advanced nations.
WASHINGTON (CNNMoney) -- International Monetary Fund Managing Director Christine Lagarde sounded the alarm Thursday that global economies are in a "dangerous phase," in her first major speech in Washington since taking over as fund chief.
"Exactly three years after the collapse of Lehman Brothers, the economic skies look troubled and turbulent as global activity slows and downside risks increase," Lagarde said. "We have entered a dangerous new phase of the crisis. Without collective resolve, the confidence -- that the world so badly needs -- will not return."
712Print CommentLagarde described how advanced nations are crushed by debt, with bad investments on the balance sheets of European banks and U.S. households in terms of mortgages.
She said that weak balance sheets and weak growth are "feeding negatively on each other," fueling a global crisis in confidence, which is responsible for curbing demand, investment and job creation.
"This vicious cycle is gaining momentum and, frankly, it has been exacerbated by policy indecision and political dysfunction," Lagarde said.
Lagarde is the former finance minister of France. She took over management of the IMF from Dominique Strauss-Kahn, who resigned after facing sexual assault charges in New York that were dismissed last month.
There's a lot at stake for the IMF and Lagarde, who is the first woman to run the global financial institution. The IMF faced criticism at the height of the financial crisis for being complacent in the years leading up to it. It failed to persuade the United States and European nations to crack down on rampant speculation and leverage.
But Largarde's speech aims to be bold, warning of certain doom if nations don't work together to clear balance sheets, reform their financial systems and rebalance global demand.
"Without collective, bold, action, there is a real risk that the major economies slip back instead of moving forward," she said.
She also took a swipe at U.S. politicans who delay tough economic decisions, such as tax hikes, until the next election, saying "they have to extend their agenda to beyond the next election."
Full story: http://money.cnn.com/2011/09/15/news/economy/world_debt_lagarde/index.htm?hpt=hp_t2
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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