Bond Outlook January 16th

Systems failure, first cited by us last July, is now apparent and will demand months or years to repair. Contagion from the USA is looking more serious than we thought.

Bond Outlook [by bridport & cie, January 16^th 2008]

Exceptionally, let us start this Weekly with a quote from an old one:

“ Moody’s says that the credit rout gives “serious reasons to worry but does not pose a systemic threat”. The Fed’s W. Poole assures that “the impact of the sub-prime problems will be contained to the real estate market and will not hurt the economy much”……..We disagree.”

We wrote that on July 25th, last year.