How bad can it be?

Discussion in 'Economics' started by freewilly, Oct 14, 2008.

  1. How bad can it be?

    In general, I am not an optimists. I am skeptical on about anything that doesn’t make sense to me. I predicted bubble in 1999, and housing bubble in 2002(believe or not when I saw lending got so easy). However, this time, my hunch is the worst might be behind us.

    It seems everything is already priced in. I don’t see any time bomb on the road. I know banks are still struggling, but that’s not news. Everyone in the world already knew it. Can it get worse? Doubt it. I feel pretty depressed last week when I stared at the monitor (although I was 100% cash in my account), but once I got off my office, I felt life. That’s not the end of the world. The street was still as busy as used to be. Shopping centers and grocery stores were still as crowded as they used to be. People were still working.

    I know banks lost a lot of money, but in my mind that’s not a real loss. It is money transferred from one pocket to another pocket. We still have technology, we still have land, we still have air to breath and water to drink, we still can produce nice things.

    The only I can see that possibly drag us further down is energy prices. Right now it came down quite a bit, and I wasn’t so sure that we are running out of oil. The price spike in Spring was partially due to speculation.

    As long as Oil is kept under $120/barrel, I think should go up from here.

    Your thoughts?

  2. °º¤ø,¸¸,ø¤º°`°º¤ø,¸ Your thoughts? °º¤ø,¸¸,ø¤º°`°º¤ø,¸

    doesn’ that’ wasn’ don’

    I wish I could type like you.
  3. :D :D :D
  4. look for min 13% inflation next year, specially in cost of living, things like rent, food, clothing ...
  5. oh and the thing is; there's gonna be high inflation not only in the US but worldwide

  6. Massive debt is a big problem.
  7. Here's the skinny: No one knows the true extent, by any measure, of the losses the banking and financial sectors have incurred.

    ...not even now.

    There is a complete lack of clarity.