Economic "Armageddon" Predicted

Stephen Roach, the chief economist at investment
banking giant Morgan Stanley, has a public
reputation for being bearish.

But you should hear what he's saying in private.

Roach met select groups of fund managers
downtown last week, including a group at Fidelity.

His prediction: America has no better than a 10
percent chance of avoiding economic "Armageddon."

...

In a nutshell, Roach's argument is that
America's record trade deficit means the dollar
will keep falling. To keep foreigners buying T-
bills and prevent a resulting rise in inflation,
Federal Reserve Chairman Alan Greenspan will be
forced to raise interest rates further and faster
than he wants.

Even in this report nothing was said of the
huge, unpayble government debt, laying it off on
all on the "greedy" consumers rather than the pols.

Still playin' the ostrich. Just about everyone.

Shhhh. Don't tell anyone either. Maybe it'll just
disappear.

Bwahahahah.