End of the Era of Excess
The long awaited meltdown of the global financial market is unfolding in front of our eyes following implosion of the US housing market. Wall Street crumbles, Main Street will follow soon; now that America sneezes, the whole world will catch cold, even influenza! Can wise men who rein the central banks be the Saviors? Maybe, up to an extent. Yet history points to much gloomier reality when menacing trends defy human design and attack where it hurts most. But, cause and effect are inherent couples. David Roche, a London based economist, estimates that banks and non-deposit taking financial institutions (NDFIs, such as investment bank Goldman Sach before its recent status change) will suffer a combined loss of about $1.3 trillion. Between them, there should be a 50% spilt. Up to mid September, NDFIs acknowledged only $250 billion while banks booked $510 billion, a brave face behind probable deceit and denial. Roche further estimates about half of the NDFI losses are lodged with European