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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (5441)	6/29/2001 2:16:47 AM
From: elmatador	Read Replies (2) \| Respond to of 74559

The need for abracadabra What the world economy needs is another abracadabra. Someone has to concoct a similar scheme like the oil shock. As you know what was known as the oil shock, was in fact the oil boom. Huge infrastructure build out in the oil exporting countries. Since they couldn't spend all that cash -even after they bought London hotels and shares in western companies- they invested their Petrodollars in western banks which recycled then to third world countries to build more infrastructure. Well, later on we discovered that the world was not running out of oil but then it was time to worry about something else. A good abracadabra was the Europe 1992 coup. The Europeans made some well disguised claims that after 1992 Europe would be a fortress with the market closed to outsiders. That caused a strong push to invest in Europe before the gates closed. Investment poured in. Master piece that one. But I think nothing beats the Asian abracadabra. Asian values, tigers economies. Capital flew in sucked by the countries that promised to be the Asian Century. It crashed when Thailand went down the drain. But it sustained the world economy for a while nicely. Right after that that, California struck another one. California seem to never run out of abracadabra's. The first one they cried: GOLD! Pronto, it boomed. Never mind that only the guys selling pick and shovels made money. But it worked. California did a second when it cried: "The Russians are Coming!" Presto! A defence industry sustained California for a good half century. The Russians weren't coming really. Well, do not underestimate the Californians: "New Economy!" someone shout, and there was another abracadabra. The late 90s rally and the bubble proved to be good to California. Now we need a new abracadabra. Some kind of new scheme that prompt the world economy once again. Perhaps someone in California is already thinking about it. Lets keep our eyes open for any sign of an abacadabra so that we can cash in on it.