A Blast From The Past: "BIS warns of Great Depression dangers from credit spree" June 2007

They tried to warn us. Some of us listened.

Others made excuses and bitched about "doom and gloomers"

Read it, and weep for your own stupidity, you know who you are.

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BIS warns of Great Depression dangers from credit spree
By Ambrose Evans-Pritchard - 25 Jun 2007

The Bank for International Settlements, the world's most prestigious
financial body, has warned that years of loose monetary policy has
fuelled a dangerous credit bubble, leaving the global economy more
vulnerable to another 1930s-style slump than generally understood.

"Virtually nobody foresaw the Great Depression of the 1930s, or the
crises which affected Japan and southeast Asia in the early and late
1990s. In fact, each downturn was preceded by a period of non-
inflationary growth exuberant enough to lead many commentators to
suggest that a 'new era' had arrived", said the bank.

The BIS, the ultimate bank of central bankers, pointed to a confluence
a worrying signs, citing mass issuance of new-fangled credit
instruments, soaring levels of household debt, extreme appetite for
risk shown by investors, and entrenched imbalances in the world
currency system.

"Behind each set of concerns lurks the common factor of highly
accommodating financial conditions. Tail events affecting the global
economy might at some point have much higher costs than is commonly
supposed," it said.

- more -
http://www.telegraph.co.uk/finance/economics/2811081/BIS-warns-of-Great-Depression-dangers-from-credit-spree.html
or
http://tinyurl.com/5pkuwn

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