French Website Defends
Right to Publish LaRouche,
Endorses Crash Analysis
August 8, 2007 (EIRNS)The Lyndon LaRouche Political Action Committee (LPAC)issued the following release today.
The webmaster of a not-so-unimportant website, http://www.top-debats.info, that covers general information with emphasis on economics and finances, felt obliged to respond to those who disagreed with his occasionally running Lyndon LaRouche's and Jacques Cheminade's analyses from their French website http://www.solidariteetprogres.org. He writes in "Note from the webmaster Lyndon LaRouche":
... [W]hen certain of his analyses are shared by other economists or enlightened observers, or do correspond to my viewpoint, I will publish them in parallel with other articles. That is in particular the case with respect to his views on: 1) the subprimes, which is mortgage lending to borrowers whose credit worthiness is questionable. These loans are bundled to be sold to institutional investors, as if they would be bonds. 2) The LBOs (leveraged buy-outs). I always considered these types of financial operations as a total perversion of capitalism and I think we're arriving at the end of a cycle. I also have serious doubts about CDOs, a little bit too disconnected from the real economy. I think the same for hedge funds.
Over a ten-year period, the price of real estate has doubled on both sides of the Atlantic! Credit institutions take profit of the small payers who get into debt to repay them and interest accumulates: a liquidity bubble is constituted which is based on... nothing. This liquidity bubble exchanges neither goods nor services and equals today 6.7 times world GDP!
These huge volumes of speculation playing ground for institutional investors are a threat to the underlying economy and in particular for the individual investor who is tributary to the reactions of these stock market giants. The risk for a crash is from now on at its peak" [emphasis in the original].