Second Financial Collapse Starting?
22 September 2011, 10:06 AM
#1
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Second Financial Collapse Starting?
Reading that Greece have stepped up their cuts program .... but now there are more 24hour strikes. The Greeks just won't accept that they have had an easy ride since the Euro and they have to re-pay their borrowings.
The US is pumping $400billion into their system .... you simply cannot continue to do this, just delaying payback day.
The UK is about to pump £billions into our economy .... again, that will show weakness and encourage inflation and higher interest rates down the line, and MORE cuts in the future.
The Eurozone as a whole is in big trouble - Germany cannot bail everyone out ... there WILL be a Greek default and then the rest will follow. Greece will agree to repay 10p in every £ (or whatever the currency is then) ... Portugal, Ireland, Spain and others will want some of THAT! They will all default!
I cannot see that we will get through this without some massive correction in the economies .... closer to home, personal debt is huge - based on that house of cards, the housing market! I can see that there will be no mortgages available very soon and the only buyers will be cash buyers ..... and they will be looking for cut price properties to rent to those who cannot afford to own.
It's going to be a rough ride from here on in ........ 10 years before it resumes to anything like it was. And never will we see the years of plenty as we have had in the past.
The US is pumping $400billion into their system .... you simply cannot continue to do this, just delaying payback day.
The UK is about to pump £billions into our economy .... again, that will show weakness and encourage inflation and higher interest rates down the line, and MORE cuts in the future.
The Eurozone as a whole is in big trouble - Germany cannot bail everyone out ... there WILL be a Greek default and then the rest will follow. Greece will agree to repay 10p in every £ (or whatever the currency is then) ... Portugal, Ireland, Spain and others will want some of THAT! They will all default!
I cannot see that we will get through this without some massive correction in the economies .... closer to home, personal debt is huge - based on that house of cards, the housing market! I can see that there will be no mortgages available very soon and the only buyers will be cash buyers ..... and they will be looking for cut price properties to rent to those who cannot afford to own.
It's going to be a rough ride from here on in ........ 10 years before it resumes to anything like it was. And never will we see the years of plenty as we have had in the past.
Last edited by pslewis; 22 September 2011 at 10:13 AM. Reason: Spelling!
22 September 2011, 10:15 AM
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The US is not pumping in $400bn, they are switching long dated debt for shorter dated debt.
Couldn't be bothered to read the rest for any further inaccuracies.
Couldn't be bothered to read the rest for any further inaccuracies.
22 September 2011, 10:21 AM
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22 September 2011, 10:23 AM
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And when the US sneezes ..... you know the rest ....
22 September 2011, 10:25 AM
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PSL - where the hell have you been - the crisis has been well underway since the Spring!
Europe is looking for €300bn to recapitalise the banks - but looking at massively discounted bank share prices there would seem to be plenty of ready private investors.
Europe is looking for €300bn to recapitalise the banks - but looking at massively discounted bank share prices there would seem to be plenty of ready private investors.
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22 September 2011, 10:33 AM
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Governments are now in a political dilemma; cut hard and start a recession, don't cut enough and debt keeps climbing?
....and then you have the eurozone which is pulling in different directions.
A little OT but I read a Telegraph article which said only 1 in 7 Brits understands the difference between debt and deficit
. That does not bode well!
22 September 2011, 11:42 AM
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Reading that Greece have stepped up their cuts program .... but now there are more 24hour strikes. The Greeks just won't accept that they have had an easy ride since the Euro and they have to re-pay their borrowings.
The US is pumping $400billion into their system .... you simply cannot continue to do this, just delaying payback day.
The UK is about to pump £billions into our economy .... again, that will show weakness and encourage inflation and higher interest rates down the line, and MORE cuts in the future.
The Eurozone as a whole is in big trouble - Germany cannot bail everyone out ... there WILL be a Greek default and then the rest will follow. Greece will agree to repay 10p in every £ (or whatever the currency is then) ... Portugal, Ireland, Spain and others will want some of THAT! They will all default!
I cannot see that we will get through this without some massive correction in the economies .... closer to home, personal debt is huge - based on that house of cards, the housing market! I can see that there will be no mortgages available very soon and the only buyers will be cash buyers ..... and they will be looking for cut price properties to rent to those who cannot afford to own.
It's going to be a rough ride from here on in ........ 10 years before it resumes to anything like it was. And never will we see the years of plenty as we have had in the past.
The US is pumping $400billion into their system .... you simply cannot continue to do this, just delaying payback day.
The UK is about to pump £billions into our economy .... again, that will show weakness and encourage inflation and higher interest rates down the line, and MORE cuts in the future.
The Eurozone as a whole is in big trouble - Germany cannot bail everyone out ... there WILL be a Greek default and then the rest will follow. Greece will agree to repay 10p in every £ (or whatever the currency is then) ... Portugal, Ireland, Spain and others will want some of THAT! They will all default!
I cannot see that we will get through this without some massive correction in the economies .... closer to home, personal debt is huge - based on that house of cards, the housing market! I can see that there will be no mortgages available very soon and the only buyers will be cash buyers ..... and they will be looking for cut price properties to rent to those who cannot afford to own.
It's going to be a rough ride from here on in ........ 10 years before it resumes to anything like it was. And never will we see the years of plenty as we have had in the past.
Do you remember me mentioning to you some time ago that NL was overborrowing and using it to make the economy look better and buy votes even though it was actually on its way down the tubes, and that we would have to pay for it in the end?
What a way to run a railway!
Les
22 September 2011, 12:20 PM
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22 September 2011, 01:05 PM
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I thought at the time it could be BS, but knowing her hubby it's very likely to be true.
That, and the Fed running around like headless chickens trying to calm the markets! (and failing...)
That, and the Fed running around like headless chickens trying to calm the markets! (and failing...)
22 September 2011, 01:11 PM
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If a US Bank goes under, a Major one, then we are all in for another shock which will bounce around the world.
Cash in the Bank is not safe ..... take it out and put it somewhere safe, now!!!
Cash in the Bank is not safe ..... take it out and put it somewhere safe, now!!!
22 September 2011, 01:26 PM
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I'm looking at property ... but, fact is, I am collecting more money monthly than any property is increasing in value in those months ....... trying to get the timing right.
Inflation won't help property values - they are still on a decline outside of the London bubble.
That said, I like the idea of putting my money into a seaside property I can touch, live and enjoy ..... because I don't think cash is safe at all ....
Inflation won't help property values - they are still on a decline outside of the London bubble.
That said, I like the idea of putting my money into a seaside property I can touch, live and enjoy ..... because I don't think cash is safe at all ....
22 September 2011, 01:53 PM
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Go on, tell me I'm right ....?!
Dave
22 September 2011, 02:27 PM
#25
I'm looking at property ... but, fact is, I am collecting more money monthly than any property is increasing in value in those months ....... trying to get the timing right.
Inflation won't help property values - they are still on a decline outside of the London bubble.
That said, I like the idea of putting my money into a seaside property I can touch, live and enjoy ..... because I don't think cash is safe at all ....
Inflation won't help property values - they are still on a decline outside of the London bubble.
That said, I like the idea of putting my money into a seaside property I can touch, live and enjoy ..... because I don't think cash is safe at all ....
Im not expecting to make "real" money on the house, but after 15 years I will hopefully be all mine, and I can at least live rent free and not have to worry about working so much.
I don't see real prices increasing any time soon, however.
22 September 2011, 03:09 PM
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I'd love to, but...
It was Morgan Stanley. Strenuously denied since this morning, of course...
22 September 2011, 03:43 PM
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That is, they're always wrong as well ... 
22 September 2011, 04:11 PM
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They did almost go in 2008, you're right. Single digit share price, and only saved by some major shareholders being "encouraged" to stem the tide of selling. Struggling to stay above $13 at the moment, oh how the mighty have fallen. Great company don't get me wrong, but their time has passed, at least for the forseeable future.
