Friday, August 15, 2008

The big one is yet to come

Karl Denninger gives his interpretation of recent events: hedge funds have been caught out badly betting against oil and the dollar, and the frantic unwinding hit gold. His prognosis is that sooner or later all the over-borrowing is going to take its toll:

There is a "supercritical" point where all asset values will get hit at once, unless the process runs to exhaustion first, and I don't think there is a snowball's chance in Hell that it will.

Meanwhile, keep your money safe.

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