Posted on 11/20/2009 10:51:01 PM PST by FromLori
VIDEO AT SITE SAYS MORE THEN ARTICLE
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:
SocGen: Prepare Yourself For the Worst Case Scenario
(Excerpt) Read more at finance.yahoo.com ...
I would say yes. Not deflation. Inflation.
Because they ignored history and relied on demand side "stimulus" instead of supply side growth incentives.
Reagonomics/Thatchernomics works. Bushonomics/Obamanomics doesn't.
I thought we were on the verge of this before the Bush bailout. Again?
50% in gold
25% in fertilizer
25%% in oil
Sleep easy.
1% in lead or depleted uranium. Sleep very easy.
They didn’t shake us, our kids, and our grandkids down for quite everything the first time around. It’s like the guy on the corner selling “Rolex” Watches; he’ll take whatever you’ve got...
“Are we on the verge of total economic collapse?”
Judging from the people we have to prevent it, I would say yes.
Anytime you have the left working together in one, big concerted lie, as in the so-called recovery, it’s wise to expect the opposite. I’m preparing for the worst, and a long worst, at that.
Unless of course there is a deflation and then that portfolio of yours will likely go down at a rate even faster than the deflation rate.
As a famous American said “ Lead is the poor man’s gold”
Col. Jeff Cooper///
Actually the poor man’s gold or real estate or art work, ie inflation hedge, is a can of pork and beans. A can of pork and beans will be worth a can of pork and beans tommorrow no matter whether there is deflation or inflation.
Good point. They must have seen the lines for Palin’s book tour and thought “Well if they have money for THAT...” ;)
And global war follows shortly thereafter.
Excellent observation. And you are wise to be prepared. We are just seeing the tip of the ice berg. The worst is yet to come.
Putting Bush in the same boat as Obama on this is a bit of an exageration and it lets O-bummer off the hook. It also gives weight to his ‘I inherited the deficit’ bullpuckey.
His deficits are at least 4 times that of Bush.
Except this one is over 10 times worse.
I'm sure that we are about to find out what precipitated this mass flight to safety.
Fasten your seat belts.
What is your opinion about ICE cancelling the dollar trade index?
http://www.marketwatch.com/story/ice-cancelling-dollar-index-trades-above-7650-2009-11-20
What Is IRX?
"I think the IRX is the best indicator of what is taking place in the credit markets. What is the IRX? It is the rate on the 3 month treasury bill. Plain and simple. When the IRX collapses (the RATE implodes and the PRICE sky rockets) it typically means credit markets have collapsed. When credit markets collapse, there's no place for banks to put money to actually make money except for treasuries. And that's where the money goes in the situations like we are seeing now. Banks buy up treasuries, pushing the prices up and rates down."
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