MachM
02-02-2009, 09:27 AM
I was watching a TV program about Dinosaurs. The situation was just before the extinction of dinosaurs.
A massive Volcano was fuming in the background and Giant birds were flying. Suddenly there were many minor explosions all over the place & poisonous gas & steam started felling the giant birds.
Then a statement appeared "Giant Birds falling from the sky are indicators of approaching massive catastrophe". After sometime the "massive volcano" erupted and all the dinosaurs on land and sky were killed/extinct.
Now the "falling giant banks & giant companies" = "falling giant birds" and they indicators of approaching massive financial catastrophe which is further loss of $1200 Trillion to the world economy = Fuming Volcano
Too bad there is $1,400 Trillion of wealth left to evaporate and will probably only be about $200 Trillion at current values left when all is said and done.
The deflationary credit contraction begins
Germany has predicted that its economy will shrink by 2.25% in 2009, which would be its worst performance in the post-World War II era.
The downgraded forecast is much lower than the previous prediction of 0.2% growth, made in October. Germany's economy accounts for about a third of eurozone output. Germany is a export power-house for heavy industrial machinery. This means worldwide giant industries are shutting down
Goldman Sachs says "0% Interest rate is too high. A new analysis by Goldman Sachs (GS) concludes that the Federal Reserve's cut in the federal funds rate to a record low of zero to 0.25% on Dec. 16 isn't going to be nearly enough to get the economy going again. The report says the Fed would need to reduce the federal funds rate to negative 6% by the end of 2010 to supply the needed amount of monetary stimulus.
The problem: It's literally impossible to cut interest rates below zero. As a result, "we are entering a world with interest rates that are far too high for the economy's good," Goldman Chief U.S. Economist Jan Hatzius wrote in a Jan. 16 research note.
All this means is that printing money is inevitable with all the consequences that brings. Once the USA and UK does it by the spring or summer the Dollar and Pound will be worth about the same as a baked bean and the country bankrupt.
Now the Poll question-: Are falling giant banks & giant companies indicators of approaching massive financial catastrophe?
Please vote for your opinion (see above)
A massive Volcano was fuming in the background and Giant birds were flying. Suddenly there were many minor explosions all over the place & poisonous gas & steam started felling the giant birds.
Then a statement appeared "Giant Birds falling from the sky are indicators of approaching massive catastrophe". After sometime the "massive volcano" erupted and all the dinosaurs on land and sky were killed/extinct.
Now the "falling giant banks & giant companies" = "falling giant birds" and they indicators of approaching massive financial catastrophe which is further loss of $1200 Trillion to the world economy = Fuming Volcano
Too bad there is $1,400 Trillion of wealth left to evaporate and will probably only be about $200 Trillion at current values left when all is said and done.
The deflationary credit contraction begins
Germany has predicted that its economy will shrink by 2.25% in 2009, which would be its worst performance in the post-World War II era.
The downgraded forecast is much lower than the previous prediction of 0.2% growth, made in October. Germany's economy accounts for about a third of eurozone output. Germany is a export power-house for heavy industrial machinery. This means worldwide giant industries are shutting down
Goldman Sachs says "0% Interest rate is too high. A new analysis by Goldman Sachs (GS) concludes that the Federal Reserve's cut in the federal funds rate to a record low of zero to 0.25% on Dec. 16 isn't going to be nearly enough to get the economy going again. The report says the Fed would need to reduce the federal funds rate to negative 6% by the end of 2010 to supply the needed amount of monetary stimulus.
The problem: It's literally impossible to cut interest rates below zero. As a result, "we are entering a world with interest rates that are far too high for the economy's good," Goldman Chief U.S. Economist Jan Hatzius wrote in a Jan. 16 research note.
All this means is that printing money is inevitable with all the consequences that brings. Once the USA and UK does it by the spring or summer the Dollar and Pound will be worth about the same as a baked bean and the country bankrupt.
Now the Poll question-: Are falling giant banks & giant companies indicators of approaching massive financial catastrophe?
Please vote for your opinion (see above)