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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Nikole Wollerstein who wrote (36886)	7/12/2008 5:46:34 AM
From: elmatador	Read Replies (1) \| Respond to of 219785

No risk! Notch another one for being the reserve currency. In mythology there was something like that: There were the simple mortals. And then there were some guys on top of the Olympus!

To: Nikole Wollerstein who wrote (36886)	7/12/2008 6:43:40 AM
From: elmatador	Respond to of 219785

Short-termism and how capital is being crushed. Fannie and Freddie were created to finance houses long term. Same as money lent to build a Nuclear or a hydropower. Only the state and multilateral institutions lent money to build infrastructure. Today we face a structural change. NOT TO CONFUSE WITH CYCLES! It is a structural change. The economy has sped up and today lives from short term only. Say Petrobras need money to fund Santos Basin oil. The oil will only come out by 2015. People with money want to buy PBR shares and make money now and spend it next money. By the same token, investment stopped where the money takes long to return and directed to where you can make money tomorrow morning. I am a project manager who builds wireless networks and operators want to sell SIM Cards while you are building the dam thing. Money being moved in and out of sectors, pile up where it is not needed, a.k.a bubbles, while starve capital for other solutions which make more sense in the long term. That's why the energy sector moved to gas and coal. You can spin the turbines earlier and gets money flowing faster than with Nuclear and hydropower. That's how we can look to a structural change that is wrecking havoc with the traditional finance structures built for a time when money flew slowlier.