Stephen S. Roach is Managing Director and Chief Economist of Morgan Stanley. So, when he uses phrases like 'The Great Unraveling' (Unstable, Unbalanced, Uncoordinated, and Unsustainable, he says gloomily in yet another recent article) to describe the state of the economy, we get an inkling (or maybe depressing certainty) of whats down the road, and its not pretty.
A few ominous snippets from Roach:
" The sub-prime carnage is getting all the headlines these days, but in the end, I suspect it will be only a footnote in yet another post-bubble shakeout"
"All this takes us to a rather disturbing bi-modal endgame – the bursting of the proverbial Big Bubble that brings the whole house of cards down or the inflation of yet another bubble to buy more time"
"I am convinced that this liquidity-driven era of excesses and imbalances will ultimately go down in history as the outgrowth of a huge failure for modern-day central banking"
The Great Unraveling
March 16, 2007
By Stephen S. Roach | from Beijing
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