Amouna

Economic Fault Lines Emerge

I am not from America and although I love that country for its beautiful scenery and the true kindness of its people, I came to hate the mentality of how things were done.

No wonder Prozac was a success among twenty somethings back in the nineties!!


On Mar 29 10:50 AM O-B-WON wrote:

> This past generation has had it too easy.... It was the me and now
> generation... all about instant gratification.. and unfortunately
> I see it in my own kids and grandkids..
>
> Overweight..?? take a pill...
>
> Stressed out....? take a pill
>
> Don't want to work..?? go on food stamps..
>
> Come in last place at the little league peewee baseball tournament...??
> you still get a trophy
>
> So now, we want to take the easy painless way out of this mess....
> aint gonna happen
>
> Peter hit the nail on the head.... "no pain ... no gain"
>
> All bets are off.... it's gonna be like nothing anybody has ever
> seen...
>
> Prepare accordingly...
>

PPIF: A Step in the Right Direction - But Not a Cure-All

I doubt the plan. The PPIF aims at creating liquidity for ILLIQUID assets by forcing investors to pay a higher price for toxic assets than the market forces dictate. We all know by now that we can't rule against market forces.

Bear Stearns, One Year Later

One year ago already! it seems so fresh in memory and yet soo much has happened since...

An Investor's Guide to Hyperinflation

To the commentator who said that "hyperinflation" has not been witnessed in modern times I say: Go back to the eighties and the examples of Brazil and Argentina and get a taste of true hyperinflationary style currencies back then!

Ironically, the Brazilian economy, which was for some time seen as a weak third world status economy, is set to emerge stronger from the current economic gloom: Strong Manufacturing and Production Base, Energy independence (Brazil is the biggest producer of Bio fuels in the world and is an emerging global oil producer), Huge Agricultural self sufficience and plenty of farmland and Commodities on their rich land.

So NO, Hyperinflation is not inevitable in our MODERN times, if modern goes further than 20 years ago. Yet, spectacular recovery is even more possible from such a disease through fiscal and debt discipline, none of which our sad America is willing to get through right now...

Risks to U.S. AAA Rating Have Grown

Great article. However, the guys at S&P should all be fired since all they can make is unsustainable predictions.

The US suffers from a fiscal cancer. Its economy, 70% consumption based on borrowing, is not sustainable anymore. It has emerged that China, until now biggest buyer of US treasuries, is not interested anymore in a US dollar exposure and other big creditors are staying away from the dollar. The Fed will desperately keep printing money and throwing good money after bad (it is called a bailout), sending the US dollar into a bottomless pit.

US economy is still the most flexible and innovative one in the world, everyone agrees. However, its very core fundamentals are greatly challenged and may not sustain the shock of confidence the rest of the world is experiencing towards its currency.

2009 Predictions I Hope Are Dead Wrong

In my opinion we are headed for another bad year, but we should have all seen it coming during the good ol'days of binge consumption fueled by excessive reliance on Chinese and Japanese hard earned capital!

Lets get real here folks, the economy is in an awful shape and all the governement is doing is trying to fix the symptoms, not attack the disease. The governement should just step aside, let the house of cards collapse. the free market will take care of itself: winners survive, but an awful lot of cash strapped, debt strangled companies will go under including generation old names! house prices will collapse too to their own "fair" level, as the market views them and the dollar will be wounded a little, but it wont die!

I predict a few 2-3 years where the whole economic landscape as we know it changes, but this is the reality of our world in the 21st century if we truly want to save it. Good luck guys and stock up on Gold and Food!!!!