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Ad Hoc Comment on Market Resilience
I mean, honestly, if I had come here a year ago and announced that the world would see a liquidity crunch such as we have never seen before, that Bear Sterns, Countrywide (a company which at its height issued 20% of US mortgages) and Northern Rock would all hit the wall.

That UBS, that previous paragon of safe banking, would write off years of profits in just one quarter. That economic growth would slow so much that miles driven in the US would see year-on-year declines such as was not recorded since 1982...And still, despite all this, that almost all commodity prices would rise by 100%, 200% and sometimes even 300%, a lot of you would probably have laughed at me!

 

 

Gavekal, June 6th 2008

07.06.2008