He says the current credit crisis is a unique historical event, in which too many people took high risks in a low-risk environment, and as a result changed the environment. He believes risks appeared low, not least because so many securities carried triple-A credit ratings. "They[ratings agencies] became part of the delusion instead of being a monitor of the delusion", he says.
He also says central banks do not have the tools to fix the financial crisis: "This is a problem of a seizing up of the whole credit system around the world and rupture of trust." The fix is going to take a long time, he says, and the compressison of credit availability is squeezing the real economy.
...gold's price rise reflects people running from uncertainty, in America and the rest of the world: "You can't eat it, can't live in it, can't do anything with it. But it's a hedge. And this is a hedgy kind of time."
He also says central banks do not have the tools to fix the financial crisis: "This is a problem of a seizing up of the whole credit system around the world and rupture of trust." The fix is going to take a long time, he says, and the compressison of credit availability is squeezing the real economy.
...gold's price rise reflects people running from uncertainty, in America and the rest of the world: "You can't eat it, can't live in it, can't do anything with it. But it's a hedge. And this is a hedgy kind of time."
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