BIS Warning
June 30th, 2008 by 
reality
A warning from the BIS (Bank for International Settlements):
“Should governments feel it necessary to take direct actions to alleviate debt burdens, it is crucial that they understand one thing beforehand. If asset prices are unrealistically high, they must fall. If savings rates are unrealistically low, they must rise. If debts cannot be serviced, they must be written off.
“To deny this through the use of gimmicks and palliatives will only make things worse in the end,” he said.
To which one can only say, Amen.
Posted in Strategy & Scenarios, The Economy, The Fed | 