The sky has finally fallen...

Discussion in 'Chit-Chat' started by ctjcad, Mar 22, 2010.

  1. twobeer

    twobeer Regular Member

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  2. silentheart

    silentheart Regular Member

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    Master Twobeer,
    good find. Exactly to the point. It is the low interest rate by Greenspen(d) started the seed of the current econ problem. Yet again, central bank still try to use the same trick to spend out of this trouble. Einstein said "Insanity: doing the same thing over and over again and expecting different results." what do you expect to happen when little timmy and benny hill doing the same thing like last time?
    God help us. We are beyond screwed.
     
  3. silentheart

    silentheart Regular Member

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    Going down. Hang on!!!
     
  4. taneepak

    taneepak Regular Member

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  5. cooler

    cooler Regular Member

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  6. extremenanopowe

    extremenanopowe Regular Member

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    will there be another chance for the market to rise again? ;)
     
  7. ctjcad

    ctjcad Regular Member

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    ..is it gonna keep on tumbling??...dang, it's near to what it was a few months back and trying to go below the 10k mark, again...:p
     
  8. extremenanopowe

    extremenanopowe Regular Member

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    I hope it goes below 10K.... have been waiting long time... get over it dear market... ;)
     
  9. taneepak

    taneepak Regular Member

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    Italian Prime Minister Silvio Berlusconi has now admitted that Europe has been living beyond its means. With so many EU countries living beyond their means they are all suddenly starting to trim their unwanted fat by cutting their budgets to try to save the EU and the Euro from tanking. This solution tries to solve the debt problem but whether this can be done is questionable. If you cut your spending you also reduce your GDP and that means the EU will shrink as an economic engine. Already China is seriously concerned about this as Europe is China's biggest export market, and with the Euro depreciating 20% against the Chinese Yuan, thus making Chinese goods 20% more expensive, and its reduced spending power because of the budget cuts, this will reduce Chinese exports to the EU. This in turn will hit other countries that export raw materials to China, thus having a contagion effect.
    Australia's raw material exports to China and other commodities prices will be affected. We are now truly living in one world.
    Suddenly all those voices, to "demand" that China appreciate its currency, comiing from the US, even Singapore, and the EU, are now silent. This is because if China were to appreciate its currency against the current plight of the EU and the US the only remaining economic engine will slow down, which in turn may mean the permanent end of the US and EU economies. This will mean the end the world because China and India alone will take ages to remake a new world order.
     
  10. taneepak

    taneepak Regular Member

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    Yes, the whole western economies are almost drowning in huge debt. Yet there is a distinct but very important difference between Europe's and the US's debts. One is a runaway horse-driven wagon without a rider to reign it in, the other still has a boss.
    This is interesting reading by Nobel Prize laureate Michael Spence www.chinadaily.com.cn/opinion/2010-05/21/content_9875910.htm
     
  11. extremenanopowe

    extremenanopowe Regular Member

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  12. taneepak

    taneepak Regular Member

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    Yes, China is tightening its monetary policy and as a reesult borrowing now becomes more expensive, hence the low bond sales. This is a managed approach to try to rein in inflation and prevent a property bubble.

    There are many Chinese and Tibetan dissidents' websites or blogs that lambast China. The more they blast China the more funding they get to stay afloat. Ever heard of Google vs China a few months ago?
     
  13. extremenanopowe

    extremenanopowe Regular Member

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    am waiting for DOW 9000. achieveable? ;)
     
  14. silentheart

    silentheart Regular Member

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    It is only another 9%. Why not?
     
  15. taneepak

    taneepak Regular Member

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    It all depends on how the Europeans are going to respond to this problem. Yesterday it was Greece; today the speculators are circling around Spain and waiting to have a feeding frenzy. Of the 4 big EU countries only Germany and France can withstand the storm. The UK and Italy have a lot of fat to cut. But cutting too much will kill their GDP because then there will be not enough money to buy goods and services.
    Remember Iceland? It was regarded as the country with one of the highest if not the highest standard of living in the world before the crash. In a way the US and most European countries enjoy a high standard of living based on debt and more debt. But all debts have to be paid back. That is not so easy when they are so huge.
     
  16. ctjcad

    ctjcad Regular Member

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    ..by the end of this yr??..sure, why not...

    What we're seeing now in Europe is a good preview of what's probably to come to the U.S., esp. with the spending spree by the current govt...
    One world govt. and one world currency, here we come...
     
  17. Yoppy

    Yoppy Regular Member

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    Why wait? to buy? how about shorting it now?
     
  18. Yoppy

    Yoppy Regular Member

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    Why wait? to buy? how about shorting it now?
     
  19. taneepak

    taneepak Regular Member

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    Yes you can, but what if it doesn't come down and instead goes up? Usually when you sell short it is with leverage to get the biggest bang for the buck. But the bang can blow in your face.
    The safest way is not to be greedy and just use your solid cash to buy at levels you think are worth buying. This way, if it goes either way you will not be wiped out if the tide turns the wrong way and you can smile if it turns the other way.
     
  20. Yoppy

    Yoppy Regular Member

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    Indonesia Shows Greece There’s Life After Austerity in BRIC Bid

    Yes indeed, its very risky. Bloomberg and CNBC these days are dominated by 2 sides of people trying to convince viewers, ones saying Greek (or the world market) will go down and the others are more bullish.

    What do you guys think?

    Personally I think its a short term correction, no more than 20% off last month peak. Here in Australia many talk about 4000 points defense line for the ASX200. Today we are at 4307 down from almost 5100 just a month ago, thats almost 16% decline. The fact that we dont hear any bad news (in fact we hear many good news apart from the Europe) indicates that traders are fleeing in a bit of panic, reasonably.

    To certain extend the current Euro situation is very similar to 1997 Asian financial crisis, the difference is the current is detected early. I still clearly remember in 1997 INA rupiah became a rubbish, no one want to hold it and inflation up to the sky. Company after company went down, and its assets were neglected. It took many years to repair the damage. The failed companies were transferred under INA govt control and later were sold off (some are cheaply) to pay its debt. Today INA is trailing only to CHN and IND in terms of GDP growth. I found this below article very good for those who want to know more about INA:

    http://www.bloomberg.com/apps/news?pid=20601109&sid=a9xRYqRY.sN0
     

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