THE TIME OF RECKONING IS HERE; WE NEED TO GET BACK TO THE BASICS.
I've been thinking lately how my people who came before me used to save and reuse almost everything. My Grandpa used to put the engine oil funnel in a jar and then he would use the oil that dripped off of the funnel for something else, I think they called that being thrifty. In his younger days he used a straight razor and soap in a cup to shave, he didn't waist anything. I think I'll start using a straight razor like Gramps, so if you notice in the future my account not being active, then you will know what happened. He also used to save everything and was always able to make just about anything that was needed; nothing went to waist.
Now don't get my wrong, I'm not one of those green freaks. But I do think that to a certain extent we've all been living too high on the hog, and with way too much excess that we really couldn't even afford. It is now time to come back to reality and live within our means, the party is over.
-jbranstetter04
Global Economic Party is Over; The whole of Asia, from Turkey to China, contributes 24% of World GDP - less than the US alone; China accounts for only 5%
By Hans-Werner Sinn, Professor of Economics and Finance, University of Munich, President of the Ifo Institute
Mar 18, 2008
Many argue that a US recession will no longer affect the world because China has supplanted America as an engine of the global economy. Wrong. Although China is growing fast, its economic power remains tiny. While the US contributes 28% to world GDP, China accounts for only 5%. The whole of Asia, from Turkey to China, contributes 24%, less than the US alone.
At some stage, the world may no longer catch a cold when the US sneezes, but that is far from being true now. Twenty-one percent of China's exports and 23% of the EU's exports to non-member countries go to the US. Thus, the world cannot help but be pulled down by a US slump.
http://www.finfacts.ie/irishfinancenews/article_1012923.shtml
Global Credit Bubble in the Midst of Being Popped
The global credit bubble is in the midst of being popped. I begged people to listen a couple of years back at what I was seeing. Most did not want to listen. Why? Because markets were going up. The people who were and are responsible for what happened and is happening were masters at obtaining other people's money. They were masters at selling and marketing opaque financial products that Einstein could not figure out. Frankly, I am amazed at the actual numbers and leverage that were and are out there. What the hell were the regulators doing? What were the rating's services doing? Oh yeah, the ratings services were being paid by the bad guys...but no conflict of interest there!
The central banks do bear responsibility. After 9/11, they cut interest rates dramatically and provided the ridiculously cheap money that helped create the housing problem as well as this leverage problem. I am in hopes they do not start dropping money from helicopters like Ben once said he would do. This would do nothing more than sustain the bubble. The Fed should let the markets do what they are supposed to do...penalize the imbeciles who took ridiculous amounts of risk. I believe in free markets. Free markets have worked throughout history. I hope this Fed recognizes that. Alan Greenspan used to flood the market with liquidity during times of financial instability. As long as the bad guys expect to be bailed out...and as long as they continue to be bailed out, the longer and worse the unwinding will be.
http://www.tradingmarkets.com/.site/stocks/commentary/gkitermi/-68257.cfm
<< Back to article
