Thursday, January 16, 2014

The coming meltdown in Singapore

See http://globaleconomicanalysis.blogspot.com/2014/01/singapore-set-for-icelandic-style.html
http://stratrisks.com/geostrat/17491

"As one of the 25 financial centers that the IMF regards as systemically important, a financial crisis centered in Singapore would put the entire global financial system in jeopardy.... Singapore currently has the highest number of millionaires per capita in the entire world ... It is important to be aware that Singapore’s bubble economy may continue inflating for several more years if the U.S. Fed Funds Rate and SIBOR continue to be held at such low levels ... I expect the ultimate popping of the emerging markets bubble to cause another crisis that is similar (though not identical in every technical sense) to the 1997 Asian Financial Crisis, and there is a strong chance that it will be even worse this time due to the fact that more countries are involved (Latin America, China, and Africa), and because the global economy is in a much weaker state now than it was during the booming late-1990s."

So when will this occur? When interest rates start to rise. I am horrible at predictions, but a crash in the fall of 2015 sounds about right.

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