Saturday, 28 February 2009

Silent fear is mounting

Over the last few days I have been surprised by the number of investment professionals, to whom I have spoken, who have been making similar remarks to the following broad sentiments.

  • I'm starting to get scared about the way things are evolving.
  • Maybe we're close to some kind of tipping point where the transfer of liabilities into the public sector and the need for massive ongoing Treasury funding could just be more than is actually feasible.
  • There are erratic movements taking place across asset classes that are not in line with previous inter-market correlations.
  • Government are not being transparent about the extent of the bailouts and the general public don't have a clue as to the magnitude of the banking crisis.

  • And for those who work for well-known financial brands one of the more common qualifications when expressing such concerns runs along the lines "Of course I'm keeping pretty quiet about all of this and not sharing my anxieties with too many colleagues."

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