Worldwide financial crisis

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Hubsu
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Re: Worldwide financial crisis

Postby Hubsu » Wed Dec 24, 2008 9:27 pm

Ricky wrote:There is a difference between:

1) "Here is some money. Spend it on what you like - maybe a holiday in the Bahamas?"

2) "Here is some money. Spend it on rebuilding your business."

3) "Here is some money. $x go to this, $y go to that, $z go to the other."


1) is what Hubsu is afraid of, 3) is what Grieg is afraid of, and 2) seems to be the sensible option. ;)


The good question is that 'which one of those results happened with the TARP money'?

It certainly wasn't #3. If it was #1 (without a finite loan time and without an inflation adjusted interest rate), in the long run US citizens became the ultimate looser. :(

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Re: Worldwide financial crisis

Postby Hubsu » Fri Dec 26, 2008 8:45 am

Japan should write-off its holdings of Treasuries because the U.S. government will struggle to finance increasing debt levels needed to dig the economy out of recession, said Akio Mikuni, president of credit ratings agency Mikuni & Co.


http://www.bloomberg.com/apps/news?pid= ... gHlh.Dn4Lc


Who would have thought? Largest Japanese credit rating agency thinks US government can't repay its debts. Japan is one of the largest loan givers to the US government.

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ram
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Re: Worldwide financial crisis

Postby ram » Fri Dec 26, 2008 2:34 pm

Hubsu wrote:
Japan should write-off its holdings of Treasuries because the U.S. government will struggle to finance increasing debt levels needed to dig the economy out of recession, said Akio Mikuni, president of credit ratings agency Mikuni & Co.


http://www.bloomberg.com/apps/news?pid= ... gHlh.Dn4Lc


Who would have thought? Largest Japanese credit rating agency thinks US government can't repay its debts. Japan is one of the largest loan givers to the US government.


If the US can't pay, who will police this country?

:mrgreen: :lol:
Colors are beautiful and deceiving.

Hubsu
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Re: Worldwide financial crisis

Postby Hubsu » Sat Dec 27, 2008 11:10 am

This is slightly older news from start of the month.

The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is accepting as collateral.

“If they told us what they held, we would know the potential losses that the government may take and that’s what they don’t want us to know,” said Carlos Mendez, a senior managing director at New York-based ICP Capital LLC, which oversees $22 billion in assets.


http://www.bloomberg.com/apps/news?pid= ... refer=home

Not even a lawsuit under Freedom of Information Act could break the wall that FED put up in order to protect the tax money receivers :P

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Re: Worldwide financial crisis

Postby Hubsu » Thu Jan 15, 2009 8:59 pm

"Former Federal Reserve Bank of St. Louis President William Poole talks with Bloomberg's Betty Liu about inflation risk from the Federal Reserve's efforts to increase liquidity."

http://www.blinkx.com/video/poole-says- ... FhBldlJ7QQ

Current FED quantitative easing scheme is a short term fix, but creates problems in the long run. It's not hard for a deflation to change into inflation in a very short time, just like what happened in the 1930s. Poole's last sentence was pretty telling:"I know of no example in history where resort to unbridled use of the printing press turns out well".

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ram
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Re: Worldwide financial crisis

Postby ram » Sat Jan 17, 2009 1:56 pm

Now that Obama is going to occupy the Office of the US President in a few days and the economy is down the question is, can he emulate the achievement of Franklin D. Roosevelt in leading the nation towards recovery of the present economic backlash?
Colors are beautiful and deceiving.

Hubsu
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Re: Worldwide financial crisis

Postby Hubsu » Wed Jan 21, 2009 4:08 am

I'll be damned. Chinese thinks that social security is crucial at improving their consumption.

"Social security crucial to higher consumption
By Huang Jing (China Daily)"
http://www.chinadaily.com.cn/bizchina/2 ... 400619.htm

China wants to break free from their US oriented export economy by creating a healthy consumer base. Traditionally Chinese have saved their money when they expect for the poorer times. Plan is to create social security so that people don't have to save all their money, but instead spend it.

Takes a while to create such a system from the scratch.

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Re: Worldwide financial crisis

Postby Hubsu » Thu Jan 22, 2009 3:36 pm

The effects of Mr. "too-much-Leverage" are slowly revealing to the politicians here on Europe as well.

""The banks are fucked, we're fucked, the country's fucked.""
http://www.guardian.co.uk/politics/2009 ... my-banking

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Re: Worldwide financial crisis

Postby Hoosier » Thu Jan 22, 2009 5:55 pm

ram wrote:Now that Obama is going to occupy the Office of the US President in a few days and the economy is down the question is, can he emulate the achievement of Franklin D. Roosevelt in leading the nation towards recovery of the present economic backlash?


Maybe Obama will recreate the CCC (Civilian Conservation Corps) and put all those strapping young people to work building roads and bridges, dams and picnic tables. My grandfather always hated FDR with a passion. I was never quite sure why.

Just yesterday, I read that England might follow Iceland in declaring their country bankrupt.

Tim

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Re: Worldwide financial crisis

Postby Hubsu » Mon Jan 26, 2009 12:59 pm

"European stocks rise, led by banks"
http://biz.yahoo.com/ap/090126/world_markets.html

Bank capitalization in motion? Bank owners might fear that the banks will be taken by the government. Last moments for them to get any money out of the bank by the owners? If that's the case, prepare for a huge crunch.

e: This shouldn't affect anyone with any savings in those banks in any way. Shouldn't :P

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Re: Worldwide financial crisis

Postby bf109 Emil » Sat Feb 28, 2009 6:05 pm

Hubsu wrote:"European stocks rise, led by banks"
http://biz.yahoo.com/ap/090126/world_markets.html

Bank capitalization in motion? Bank owners might fear that the banks will be taken by the government. Last moments for them to get any money out of the bank by the owners? If that's the case, prepare for a huge crunch.

e: This shouldn't affect anyone with any savings in those banks in any way. Shouldn't :P

depends on what currency your savings are in...remember both China, Saudi Arabia have for the last 30 years been buying huge amounts of US currency in an effort to keep the value of the US dollar high and in turn make there's more attractable or of lesser value so as to make there items cheaper to the American buying machine (people) but if say China, Saudi Arabia and other countries with hundreds of billions in US currency all of a sudden decide to trade/spend or flood the market with this currency, the value of your savings in US$$$ might go the way of the Mark did in Germany but to a lesser degree, making the value of US held companies cheaper to buy and become the possession of foreign investors
"Badges, we don't need no stinking badges"

wooden major
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Re: Worldwide financial crisis

Postby wooden major » Wed Mar 04, 2009 8:10 am

lucky for me , i trades all my greenbacks for confederate dollars long ago ...

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Re: Worldwide financial crisis

Postby Hubsu » Wed Mar 18, 2009 7:57 pm

http://biz.yahoo.com/ap/090318/wall_str ... &ccode=TBD

Ugh. Even altough US stock market is on a rise, US stock market against Euro and against Yen is falling. Quantitive easing is now even officially on the move. What will China say about that after Hillary's visit? :)

As far European markets, I can't imagine this new stock rally they've seen will last long.

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Re: Worldwide financial crisis

Postby Hubsu » Tue Apr 27, 2010 9:37 pm

Hubsu wrote:As far European markets, I can't imagine this new stock rally they've seen will last long.


Round two... fight!

Image

(CDP spreads tells the cumulative propability of a default. There's two rather high propability outcomes for the European market: risk premiums will increase interest rates or the need to capitalize assets to cover losses will increase. Both outcomes will lead to a dip in the stock market.)

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Re: Worldwide financial crisis

Postby wooden major » Wed Apr 28, 2010 3:31 am

hubsu ,imo ,i quite right ,the percieved good value of the good old US greenback is entirely artificial ,we americans produce nothing ,sell nothing and export nothing ...we borrow and consume ,then borrow some more .this foolishness far predates our current marxist indonesian administration ,obama didnt creat this mess but his lunatic spending and regulation plan will help to speed up the puff of wind that soon gently carress the house of cards that we ALL currently inhabit .

all forum members should convert all paper currency assets to silver ,gold and basic commoditys ...the shit is destined to hit the fan ..and btw ,urge your nations to re-arm and plan on self sufficiency ,the USA is gonna soon be out of the "free security mall cop service "for the whole F##KIN world ...hasta la vista ...baby .

obama promised "hope and CHANGE " ...rest assured he will deliver big on the latter ..if not the former ....

really though, guys ....if you have any money in saveings ,convert it to pre 64 US dimes and quarters ,,,or their local equivalent .paper money will become useful only for wipeing your ass and starting campfires ..buy rice, beans ,bullets ,asprin ,booze ,rubys ,silver ,kerosene ,ect ...the chinese are quetly buying up all the gold they can lay their hands on .they are not fools .the post weimar deutshmark commeth ...

if you think the world economy is F##ked up now ...you aint seen nothin yet ....dont get caught watching the paint dry .


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