Tuesday, August 19, 2008

Large U.S. bank collapsing: report

In the morning news, inflation is raging at the producer level and housing starts continue to tank.

Again, the headlines are hiding some significant developments, one of which is that an Ex-IMF economist sees large U.S. bank collapsing:
: "Kenneth Rogoff, the former chief economist of the International Monetary Fund, reportedly said Tuesday that a large U.S. bank will collapse in the next few months. 'We're not just going to see mid-sized banks go under in the next few months, we're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks,' Rogoff told a conference in Singapore, according to a Reuters report."
It is important that investors abroad keep faith in the American banks, since foreign investment plays such a large role in our current financial system. God help us if that unwinds quickly.

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