Tuesday, 31 May 2011
Games Of Chance
This is a short post but a large subject, like what in blazes is going on? If these people do not know, as well as many others, is anyone going to be right or are they all going to be wrong.
Given this, and that they have access to more or less the same data and sources as our civil service and government and may understand it better, then can we believe anything we hear coming out of Westminster or Washington DC?
The link below is a collection of other links about the nature of uncertainty at present; apparently the answer lies in the leverage. The banks are said to be running it at 20 to 1.
If that is not bad enough a lot of the assets on which the leverage is based are government bonds. These are issued by the same governments that have borrowed heavily to support the banks.
What really worries me is that I look on them as optimists.