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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (82316)	10/22/2008 8:12:15 AM
From: dybdahl	1 Recommendation Respond to of 94695

I think it is obvious to people on this thread, that banks will fall, financial sector will restructure etc. However, the difference between doomsday scenarios and other scenarios are about the rest of the economy. Will the collapse in the financial sector spread? I think most people I know, that live in their own house, would take a 100% reduction of house value and retirement funds without changing any habits. Maybe they would work more and retire later. However, I consider that worse than worst case. If the collapse in the financial sector doesn't spread, it means that we have a world economy with many companies that are currently undervalued. This stuff is like balances in chemistry or network traffic in computers: How big is the buffer? The main purposes of the European bailouts, as far as I see it, is to stabilize the amount of available cash for non-financial companies.