Wednesday, February 10, 2010, 8:40AM ET - U.S. Markets open in 50 mins..
Are we on the verge of total economic collapse?
Don't laugh. The french firm Societe Generale thinks so.
The brokerage firm has put the fear of God in clients recently by predicting that developed economies and markets are going to collapse under a monster debt load and that gold is going to soar to $6,000 an ounce.
Fortunately, not everyone feels that way.
Many on Wall Street, in fact, have suddenly gotten quite bullish after missing a lot of the extraordinary 65% rally we've had since the lows of March. Hopefully, these folks--the "V-shaped recovery" crowd--are right, and the bad news of the last couple of years will soon be a distant memory.
Aaron and I are skeptical, though. The aftermath of debt-fueled financial crises like the one we went through usually lasts for many years, if not decades. Japan has been struggling to right its ship since its own bubble burst in 1990, and the country still isn't growing strongly again. (Japan's stock market, meanwhile, trades at a fifth of its 1989 high).
With luck, we won't end up like Japan--or the SocGen scenario. We doubt, however, that the economy and markets will just shrug off the last year as if nothing serious happened.
If you're curious, you can see highlights of the SocGen report here:
The arms of government: 1. Bankers, 2-Media,3-Politicians Vote in 2010 and get rid of incumbents. Start using Chinese banks and media outlets. Let's lower our costs and outsource all three! It is time for all those "dirty" wall street jobs to be sent overseas... hahhaha
The 3 arms of government: 1. Bankers, 2-Media,3-Politicians Vote in 2010 and get rid of incumbents. Start using Chinese banks and media outlets. Let's lower our costs and outsource all three! It is time for all those "dirty" wall street jobs to be sent overseas... hahhaha
Ignore the one party system and vote out incumbents in every election
As usual, such claims do have a certain merit, yet also as usual the claimants have an own agenda, will it come to such scenario, I doubt it but hell...we might get reall really close! What I will do is short the markets, it is clear that this "rally" is long overdone, once dowon we can again re-assess and make new bets! Anything else is the usual propaganda!
In 2010, you will be able to rent the same house you could buy, for half the payment. You get to save or invest your downpayment cash, instead of handing it over to a lender (shark), with a frontload interest loan PLUS you get to watch your buddies squirm further as the price of their homes continue to crater. These are good times for savy renters my friends, and miserable times for so called "home owners".
Why didn't you two warn Warren Buffet that the market is overvalued?
Housing:... Just like the 1930's young people, unemployed and marginally employed are postponing major decisions like marriage, making babies and home buying until they feel more secure, and are truly more secure. Means one thing.....a pent up future demand for entry level homes, weddings and baby supplies.
Its all a game of chicken and who can run the fastest with the money when the ball drops.
Are we voting? So far it's 2-1 in favorite of collapse, not counting the spammers.
Is it just me, or does reading Popoy's posts feel just like taking a huge bong hit?
I think it's a joke did you read their soluion on how to survive it :D LOL
Global collapse is ok, at least the all of he US welfare bums have thier new homes... Just ask Barney Frank and Harry Reid whats best for us..
Yes, we are. Right now what we see is some late night party goers who are dancing until the music stops.
The people during the depression only used cash, no credit. They were paid under the table and kept their cash in the matress, not the bank. Why? Same story different day. Barter and trade, cash and matresses. That is the future for now. Start today and be prepared. Stop paying off your credit cards and tell the banks to pound sand. Keep the money you would pay them with and put in the matress. You will be happy and secure.
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Yahoo! Finance User - Friday November 20, 2009 11:20AM EST
Outsourcing CEOs, greedy and heartless mortgage lenders, and all of you idiots who overextended themselves and didn't settle for a condo instead of a house, all of you can kiss my a__!.