New tipping-point in the global systemic crisis: When the illusion that the crisis is under control fades away…

June/July 2008 – New tipping-point in the global systemic crisis: When the illusion that the crisis is under control fades away…: "June/July 2008 – New tipping-point in the global systemic crisis: When the illusion that the crisis is under control fades away…

Sorcerer's apprentices are doomed to repeat the same mistakes on and on. In 2007, the authorities' and large financial institutions' attempt to conceal the subprime crisis (1) (which had already started hitting hard on the markets in February-March 2007) resulted in a severe and sustainable shock in summer 2007. Well, in the coming weeks we will experience a “remake” of the same scenario, i.e. a serious aggravation of the January-March 2008 financial crisis at the beginning of summer 2008.

In this 25th issue of the Global Europe Anticipation Bulletin, our team therefore decided to describe five of the seven trends currently at work and soon to result in this new tipping-point of the global systemic crisis (the last two trends – Europe and Asia - will be analysed in GEAB N°26):

Real estate: A bottomless pit
Global financial bubble: Inflation only is progressing
US economy: Recession settles down
US public deficits: The big return
Dollar: The rebound that does not exist
Europe: Decoupling confirmed – The heart of Euroland resists / UK enters recession
Asia: Severe slowdown ahead

We also formulate a complete series of strategic and operational recommendations aimed at preparing oneself to the upcoming Summer-2008 shock..."