Economic `Armageddon' predicted for the United States
 

Economic `Armageddon' predicted
By Brett Arends/ On State Street
Tuesday, November 23, 2004

Stephen Roach, the chief economist at investment banking giant Morgan Stanley, has a public reputation for being bearish.
But you should hear what he's saying in private.
Roach met select groups of fund managers downtown last week, including a group at Fidelity.
His prediction: America has no better than a 10 percent chance of avoiding economic ``armageddon.''
Press were not allowed into the meetings. But the Herald has obtained a copy of Roach's presentation. A stunned source who was at one meeting said, ``it struck me how extreme he was - much more, it seemed to me, than in public.''
Roach sees a 30 percent chance of a slump soon and a 60 percent chance that ``we'll muddle through for a while and delay the eventual armageddon.''
The chance we'll get through OK: one in 10. Maybe.
In a nutshell, Roach's argument is that America's record trade deficit means the dollar will keep falling. To keep foreigners buying T-bills and prevent a resulting rise in inflation, Federal Reserve Chairman Alan Greenspan will be forced to raise interest rates further and faster than he wants.
More:
http://business.bostonherald.com/bus...rticleid=55356

I'm starting to piss my pants.:(

Already been posted

A-Ok USA:thumbsup

Shit. :helpme

I think the US economy will hit a point where it just won't fall anymore. No matter what the rest of the world thinks, the US still is the largest single country economy, still posesses technology beyond any other country, and has tremendous assets beyond any other country.

Just because it's currently in the hands of maniacs doesn't mean it's done.

Everything is temporary.

Maybe I'd better refinance and get a fixed-rate mortgage.

Or convert all my dollars to Euros.

Or just hide in bed with the covers over my head.

Now's the time to just stay back, keep our money close and wait and see investors drop like flies.

Then the vultures fly in a pick at the carcasses, there will be a lot of money to be made!

ignornant much?

Oh i agree that America will rise again I'm just fearing it will be awhile...

I would definitely be looking to lock in at a low rate before they are raised. Its going to happen soon.