Houston, We have a central-bank-run!
Judging by the comments, it seems many of you share my interest in understanding the recent economic news, at least Juha does. So I will continue covering that. Yesterday, my brother Carlos, who works for BNP in Europe sent me this story: Apparently we are seeing a dumping of US related assets by what is speculated to be... the Chinese. . Forget the computer attacks, Asia's sovereign funds dumping US assets would have a real impact on the economy. Credit and liquidity crises are not new and, when they turn bad, they turn bad. In 1929, the liquidity scare sparked a bank run. Banks didn't have enough cash and were defaulting, accelerating the mad dash and "bank-run" to get your money out while there was still liquidity. Then, the real economy wound up with no credit, and we all know the sad story from there. 2007 isn't like 1929. It isn't an "end-consumer" bank run. You and I are not going to the corner bank to take our savings out. Our confidence ...
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The simple fact that BULL(sh) IT is in the list just make it really clear that it's a poisson d'avril, of course ;)
It was quite funny to hear people in the queue wondering if you-know-who would turn up, how you-know-who would be dressed, etc…...as if the President of the French Republic would not be there.
The English newspapers did not really care at all about the announced new era in the French-English relationship, focusing on the wardrobe instead of the new Entente Formidable ;-)
London has become the 7th French city in the world...