“I posited some months back that tumult in the emerging markets marked the second phase of unfolding Crisis Dynamics. I have argued that the global government finance Bubble, history’s greatest Bubble, has been pierced at the ‘periphery.’ More recently, the analytical focus has been on ‘Periphery to Core Crisis Dynamics.’ I’ve chronicled de-risking/deleveraging dynamics making headway toward the ‘Core.’ This week the ‘Core’ became fully enveloped, as the unfolding global crisis entered a critical third phase.”
USAGOLD note: We have been following Doug Noland’s writings of late with a great deal of interest. Here is the latest chapter. Noland understands credit markets – the make-up and unwinding of financial bubbles.