August 9, 2007 (LPAC)--Well-known French economist Pierre-Antoine Delhommais warns today in Le Monde that if there is a financial collapse, it will be global.

At the end of June, Delhommais says, Bank for International Settlement Director General Malcolm Knight, spoke of a "golden age" for the world economy, questioning whether it could endure. But now, globalization is full of "shocks and shockwaves." He demonstrates how the collapse of home prices in the U.S. could destroy the economy of every nation, including China and the euro bloc. If America's economy collapses, there will be no market for Chinese exports.

"Globalization is full of shocks, because it is full of speculative bubbles," Delhommais says, noting that financial assets bubble is three times the world's GDP. "After the tulip bulb bubble in 17th Century in Holland, and the 1929 crash, we now have the American crisis of subprime mortgages, whose impact no one can forecast. Some are already dreaming about the 'the big one' that would bring into question the ... overwhelming power of the markets."

Delhommais concludes by quoting American economist John Kenneth Galbraith, "What we know with certainty is that speculative episodes never end lightly. It is wise to forecast the worst, even if, according to most people, it is unlikely."