“**The City of London is on borrowed time. Great banking centres can prosper for 40 years or so after the host country has lost industrial leadership but then some shock or political upset exposes the fragility of it all. **”
ah right …there IS a war
Plenty of war
His point being that Thatcherisms last gasp was in Eastern Europe which is now rapidly imploding …faster than we are in the case of the Baltics.
A very reasonable article and very far from a Last Ditcher / Little Englander screed.
Maybe its because I remember the lead in to the Brixton riots in the early '80’s and LA riots in the early 90’s and got to visit the scene of both riots soon afterwards that I take the worries about serious civil unrest very seriously. Maybe not this year but 2010 will be a very volatile year as the full impact of what happened last year sinks in. Countries with no effective mainstream political opposition are top of the list of those likely to explode. France and Italy come immediately to mind.
Those are private equity funds, not hedge funds. Some of the most vocal (and profitable) sceptics of the credit bubble were hedge fund managers, especially when their funds took a bet against the debt of leverage buyouts led by voracious private equity firms.