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

To: TobagoJack who wrote (68449)	11/21/2010 2:41:10 AM
From: elmatador	Respond to of 218043

Finance-only economy managed by MBA's. As it made water government relied on the bankers to take the country out of the nose dive. The results are there plain to see... Why we decoupled? We have real economies. With people getting hands dirty, with dust raising, noise and goods moving.

To: TobagoJack who wrote (68449)	11/21/2010 2:49:55 AM
From: elmatador	Respond to of 218043

But the nub of the crisis is this: "We have decided to socialize the private losses of the banking system. Now you have a huge increase in public debt-going from 7 percent to 100 percent of GDP. Soon it will be 120 percent." ELMAT: socialize means let the poor people pay the debts. "Now you have a bunch of super sovereigns- the IMF, the EU, the eurozone-bailing out these sovereigns." ELMAT: With much less than that Brazil spent 15 years in the dumps and sent our economy back 30 years!!! He says wryly: "There's not going to be anyone coming from Mars or the moon to bail out the IMF or the Eurozone." In Roubini's view, the probability of the right steps being taken in France soon is not great. "Politically they are constrained from making reforms." For example, after the French made relatively small changes in their social welfare system-raising the retirement age from 60 to 62 -"You had massive riots in the streets." ELMAT: Middle class fights the grim reaper. Can anyone explain that middle class that they should thank their state to have gone so far? But the real nightmare domino is Spain. Roubini refers to the Spanish debt problems as "the elephant in the room". ELMAT: Already shown here how it scales up: Message 26973985 ireland "But if Spain falls off the cliff, there is not enough official money in this envelope of European resources to bail out Spain. Spain is too big to fail on one side-and also too big to be bailed out." With Spain, the first problem is the size of its public debt: €1 trillion. (Greece, by contrast, has €300 of public debt.) Spain also has €1 trillion in private foreign liabilities. And for problems of that magnitude, there simply are not enough resources-governmental or super-sovereign-to go around finance.yahoo.com