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Monday, May 30, 2011

Fresh Financial Crisis Around Corner

Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, said another financial crisis is inevitable because the causes of the previous one haven’t been resolved.

“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius said at the Foreign Correspondents’ Club of Japan in Tokyo today in response to a question about price swings. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”

The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, said Mobius, who oversees more than $50 billion. With that volume of bets in different directions, volatility and equity market crises will occur, he said.

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1 comment:

  1. The more I read, the more confused I become

    Nothing makes sense anymore

    I'm 66 and I try hard to make sure what little i've got goes the distance

    2 years ago; my neighbor who is some big wheel with Edward Jones tells me to invest heavily in
    big tobacco.

    Well, I went home and thought about that for awhile, did a little research etc. etc.

    My logical conclusion? At almost 4 bucks a pack
    and usage decline here in the US and a ton more
    regs in the pipeline, no way I'm buying big
    smokie.

    fast forward 2 years - I see my neighbor a couple weeks back & we get to chatting - asks
    me how I'm loving those big tobaccos now? I went
    home and checked

    Sonofabitch! Altria is up over 40% !!!!!!!!!!
    Reynolds America is 45% !!!!!!!
    And fucking Marlboros are 6 bucks a gadamn pack

    Who smokes! It ain't the rich

    Don't tell me people are broke - not when something that kills you slowly is making record profits

    UNBELIEVABLE

    ReplyDelete

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