Dr. Roubini explains why non-oil commodity prices will fall, the floating currencies of euro and yen and others will rise as the dollar falls, and that the Fed will pause today and ease in September or November. The slowdown in the rest of the world may be delayed by a quarter or two, but they will slow down too. China, Japan, Europe, emerging markets, Latin America are going to slow down.
He says foreign flight will be next, the dollar will tumble this fall as the temporary factors which held it up are unraveling, and there is a risk of a financial meltdown similar to the 1987 stock market crash and the LTCM fund collapse.
I think most didn’t read his comments, or this thread would have been a mile long. Please take the time to read it, because if what he says is true, there are some serious implications for rebalancing our portfolios by fall.
