Batten down the hatches and get into cash

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Jul 13, 2011 | 06:48 PM

#91

J4CKO

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So, to sum up,

Personally I think you are all bigging it up, there will be a plan and we will all end up poorer but I cant see it being Armageddon, this feels like the dying throes of a game of Monopoly on a grand scale.

Jul 13, 2011 | 06:49 PM

#92

tony de wonderful

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Quote:

Originally Posted by GlesgaKiss

Allow private companies to launch competing currencies backed by gold and watch how quickly the pound turns to toilet paper. The only reason people use a pure fiat is because there is no other option.

Interesting idea.

I must say the idea of that appeals to the anarco-capitalist in me.

Jul 13, 2011 | 06:53 PM

#93

hutton_d

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Quote:

Originally Posted by Trout

But Spain is still small compared to Italy, it is also less intertwined to northern Europe economies.

But they are ALL lying about their debt levels so anything you read about 'debt levels' is b*llux!

Dave

Jul 13, 2011 | 07:37 PM

#94

GlesgaKiss

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From: Scotland

Quote:

Originally Posted by tony de wonderful

Interesting idea.

I must say the idea of that appeals to the anarco-capitalist in me.

Some of his ideas certainly appeal to me. Others just seem too ludicrous to ever see them in practice.

Jul 13, 2011 | 07:39 PM

#95

marky1

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Quote:

Originally Posted by tony de wonderful

Yeah, but cash would be one of the last things to fall I think?

It's very much a case of the least worst option.

I'd prefer cash over a gold ETF.

The cash won't be worth anything though. The FIAT system is all about confidence in the value of money.

Jul 13, 2011 | 08:07 PM

#96

pslewis

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From: Old Codgers Home

I think I might just buy Greece and be done with it ...
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and Ireland, Italy, Spain and Portugal .....
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and, what do I do with the other half of my money?

Jul 13, 2011 | 08:34 PM

#97

hodgy0_2

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From: K

Quote:

Originally Posted by pslewis

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and, what do I do with the other half of my money?

buy a pint of milk?

Jul 14, 2011 | 02:47 AM

#98

Trout

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Quote:

Originally Posted by hutton_d

But they are ALL lying about their debt levels so anything you read about 'debt levels' is b*llux!

Dave

And your point is?

It is easy to ascertain the level of debt in issued bonds - the usual form of Government security.

Other, hidden debts, could be lied about so the only dimension is worse. And what is known is terrible.

Jul 14, 2011 | 02:49 AM

#99

Trout

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Quote:

Originally Posted by J4CKO

So, to sum up,

Let's hope you are right.

The real problem is is this the beginning of the end or the end of the beginning. If it is the latter, 2008 will seem like an amuse bouche compared to what is about to happen.

The Euro issue alone will force fundamental shifts in the European Community.

Jul 14, 2011 | 02:50 AM

#100

Trout

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Quote:

Originally Posted by tony de wonderful

Are institutions (and private investors) not able to 'deposition' themselves away from these toxic debts and the WMD CDF's etc. I thought that was partly the point of 'buying time' with bail-outs etc?

The problem is that this is 'toxic' debt on a sovereign scale.

Jul 14, 2011 | 03:03 AM

#101

Trout

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Quote:

Originally Posted by marky1

Very true. That's why you need to be careful what you buy and the price you pay.

Good luck!! You are probably right...

...In Florida there were people thinking that buying a $1m property for $200k was a brilliant deal. Now they can't sell them for $100k.

Jul 14, 2011 | 10:58 AM

#102

stef_2010

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Hope some lucky person invested in gold in the past few days

Jul 18, 2011 | 03:36 PM

#103

GlesgaKiss

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From: Scotland

Banks taking a pounding again today. Gold and silver up, European yields - especially Italy and Spain - on the up again.

Haven't really been keeping an eye on stock prices, but just noticed now that Barclays has lost around a third of its value in this last quarter!

Jul 18, 2011 | 03:38 PM

#104

GlesgaKiss

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From: Scotland

http://www.bloomberg.com/apps/quote?ticker=GBTPGR10:IND
http://www.bloomberg.com/apps/quote?ticker=GSPG10YR:IND

Jul 18, 2011 | 03:45 PM

#105

Steve vRS

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From: Dull White BMW

Quote:

Originally Posted by GlesgaKiss

European yields - especially Italy and Spain - on the up again.

Why if they are broke? The financial markets are a mystery to me!

Steve

Jul 18, 2011 | 03:53 PM

#106

TelBoy

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From: God's promised land

Steve, it's a reflection of the cost of money to these countries. Anything past 7% on their 10 year debt is considered a sign that nobody wants to lend them money because the risk of not getting it back is too high.

Personally i think it's inevitable that Italy will have to be bailed out. And i'll laugh if the Euro eventually needs to be disbanded, it was a huge political error in the first place.

Jul 18, 2011 | 04:25 PM

#107

Steve vRS

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From: Dull White BMW

Thanks for the straight answer!

Steve

Jul 18, 2011 | 04:30 PM

#108

GlesgaKiss

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Quote:

Originally Posted by TelBoy

Personally i think it's inevitable that Italy will have to be bailed out. And i'll laugh if the Euro eventually needs to be disbanded, it was a huge political error in the first place.

Could not agree more!

Quote:

Originally Posted by Steve vRS

Thanks for the straight answer!

Steve

Yes, Steve, yields rising is not a good thing, as Tel says. It's the converse of a rising price (which means the bonds are in demand).