Trading to Win

IMF On Lending Spree - Needs $150B, At Least

Sunty,

Spot-on.

The UK could become an Undeveloping Nation, a al Argentina.

IMF On Lending Spree - Needs $150B, At Least

Rakesh,

A few smart cookies in the UK think that the UK will end needing an IMF bailout. What are your thoughts on this happening?

Wrong Great Depression Lessons Will Haunt Equities in 2009

Rakesh,

Have you read the book The Final Crash?

Here are a few choice quotes:

'It appears that we may be facing a meltdown rather than just a temporary slowdown, perhaps the greatest since the dawn of the Industrial Revolution.'

'Debt is utterly endemic throughout western economies: not just at government level but for individuals, corporations and financial markets alike.'

'It could prove to be the final crash for western stock markets as they wither in proportion to the deflating economies they represent.'

'The bursting of the 1980s property bubble hamstrung the Japanese financial system as banks became completely risk averse and ceased to lend money: activity ground to a halt. This is they key weakness of a debt-driven economy where constant new loans are required to continue the charade whereby growth is not organic but artificial.'

'A catch-22 situation exists whereby consumer spending is supported by consumer confidence which is supported in turn by higher house prices and home equity extraction.'

'The knock-on effect of a generational low in interest rates has inflated every asset to the hilt: there is now nothing left to pump. When the final crash comes, every active participant in the primary and secondary bubble areas will be blown away. A deflationary pin-prick now looms large.'

Happy New Year to you!!!