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August 6, 2008 (LPAC)--The leading French financial daily, Les Echos, yesterday warned that the effect of a more than 30 percent decline in financial values is now working its way through the construction, auto and other consumer-linked sectors, where losses are now equal to, or greater, than the financial losses themselves.

Author Stephane Le Page predicts a kind of snowballing collapse spiral in which financial losses lead to losses in the non-financial sectors of the economy, which in turn generate further financial losses. This scenario, identified by LaRouche as a reverse-leverage blowout, occurs when a bubble pops and fictitious values evaporate in a self-feeding death spiral, as financial losses cause economic contractions, which cause further financial losses, sending the economy into a continuous collapse which can only be broken by the firewall/bankruptcy measures proposed by LaRouche. What Les Echos presents as something to come, is in fact already happening, and is far more advanced, and more dire, than the paper dare admit.