Quote of the day
Oct 23 14:12
by Stacy-Marie Ishmael
by Stacy-Marie Ishmael
Jim Reid, Deutsche Bank:
It’s a depressing world when the only safe haven at the moment is a country that has recently nationalised its two largest mortgage companies, bailed out the world’s largest insurance company, is spending $700bn buying toxic assets, is injecting $250m into its largest banks after high profile failures and is about to go on a fiscal expansion the likes it has never before seen in its history.
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2 comments:
This is just the beginning. I believe US will get out of the recession much faster than Europe. This will take at least 3-5 years. Europe will face a longer but milder recession. Unfortunately the New Europe dream is under attack. The FDIs are going to die, Inflation will increase by at least 15% in most of these countries, growth won't be around for many years and people will keep living under panic. Major Banks are going to fail since the financial system is COMPLETELY OUT OF BUSINESS. More or less the same goes for Europe. The only -but vital- difference is that Europe has a strong social, politic and economic structure.
Banks are out of business. You don't have to be a nuclear scientist to get it...You buy high you sell low...what follows next? Bankruptcy.
The only reason people believe that the system won't collapse is because they cannot imagine what follows next. It is impossible for people to imagine a second great depression even though they have read about it in the past.
On the political grounds now, New Liberals should be punished. New Liberals would include the republicans in the US, the imposers of the "dead end" economic policies in Italy, the populist right representatives in Greece, the national social right politicians in Poland, the liberals in Germany and so many others.. They should not be punished for imposing their thoughts. They should be punished because they were arrogant.
On the financial grounds, humanity, initially, needs to see how to get over the crisis and then punish all the "useless, arrogant, short sighted and constantly conspiring" finance people. Everybody in the market knew what was about to follow BUT nobody was strong enough to admit it..Maybe this is because everybody would reveal the secret after the bonus payment.. How short sight policy..
Even the entry level employers were chosen under doubtful criteria. These are things that people should expect when the system blindly trusts "top university" alumnus. Alumnus who have never been tested for their global views and entrepreneurship mentality they ought to have. Introducing so many quant people in the system would lead to these results. The economy needs economists and people who are in position to explain what the F**k is "inflation", “growth” and “stagflation”.
The irony of the whole story is that moderate people, Keynes supporters and people who used to believe in the European fundamentals of social governments, workers rights, Unions, moderate monetary policies were criticized as inadequate..Now they are here to save the New Liberal politics.. “Socialism saves Capitalism”…what an irony
This deserves a post of its own!!!
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