Tuesday, February 06, 2007

"This Has to End Badly"

The link above is from a new web site built around a new book that is coming out that apparently describes a potential financial "doomsday scenario" taking place in the near future.

"There's too much money and they are paying too high prices and leveraging themselves too much," Rogers said. "There's going to be a gigantic shakeout when that whole mess starts coming apart. This has to end badly."

Indeed, that sounds just like what some astute observers were saying about the housing market a year-and-a-half ago, the stock market in late-1999, and the Asian markets in the summer of 1997, when most people believed otherwise.

I guess we'll have to wait and see.

I am pretty bearish myself right now, but I am not quite sure what to make of this scenario. Hat tip to Barry Ritholtz for finding it. It is being discussed at his site.

No comments: