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Morgan Stanley calls Bush Economic Policies "Insane"

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Ant:
Mr Roach said that American consumers were relying on a "bubble" in US property prices to sustain unrealistic spending and "turning their homes into a massive ATM machine".

Americans relying on borrowing against their homes are snapping up imports from Asia, made cheap by those countries' currency pegs to the dollar. To sustain the pegs, Asian nations are forced to keep buying dollars, artificially driving down US interest rates so Americans borrow even more.

"This is an insane way to run the world economy. You know that, we know that, but the Federal Reserve is in denial," Mr Roach said. He added that with US interest rates now climbing, a sharp retrenchment by American consumers could jeopardise economic recovery there and worldwide.

The comments came after a steep and steady slide in the dollar over the past three years that accelerated after Mr Bush's re-election in November - although the currency has steadied recently.

http://www.timesonline.co.uk/article/0,,3-1458322,00.html

This was from a conversation at the World Economic Forum I believe.   See: http://www.weforum.org/

dexter:
Right on

dexter:
the Right Wing GOP
is the BLAME!

Don Rizzle:

--- Quote ---Many of the world's central banks are starting to look to the euro to fill their currency reserves instead of the dollar, a survey suggests.
The poll carried out by Central Banking Publications found 39 nations of the 65 surveyed raising their euro holdings, with 29 cutting
--- End quote ---

dexter:
the euro is taking over!

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