In 2007, USA real estate were worth $20 trillion. By June 2008, USA would be worth $40 Trillion. China & India real estates are 5 or 10 times more expensive than USA real estates. Now think of worldwide real estates, stocks, commodities.
Example-: A company share is worth $100. If a big investor invests $500 million the share price will rise to $125. This means the world stock markets increased by $30 Trillion only when $30 Trillion "actual money" was invested Now $30 Trillion have been wiped out from world stock markets. This means there is "actual loss" of $30 Trillion. Similarly there is "actual loss" of $60 Trillion
It's funny how the symbolism stares the people right in the face everyday, yet so few understand what is going on.
Excellent post and example. In simple words "Here the friend is government in debts and the bankrupt giant companies are asking for loan."
I think, the printing cost of $100 bill is 10 cents. Central banks have the monopoly of printing money. Central banks are just increasing the "money supply" when there is no actual "sales demand".
Ponzi is popular now. What it really is is governments and central banks taking advantage of an opportunity to expand power without accepting responsibility for the situation. No not a ponzi.
LOL. I did the World Financial Group (Aegon's version of Primerica) for a few years. We would cashout refi our customers' mortgages (mostly 3/27 IO ARMs or 12MAT Option ARMs with 4.25 yspd on the back) and 7-pay EIUL and VUL (Universal Life Insurance policies). Our main allocation in the VUL was the Clarion Global REIT. I saw the train wreck that is the real estate crash coming and tried to tell my upline's upline to explore other options w/ the funds. He told me to shut up and go recruit 3 more people so he could get "promoted." Paulson has been singing a similar tune now for a while. He reminds me of Jeff Skilling (ex Enron CEO).
Talknet - Are you Marc Faber? Since you've joined ET last month, all you've been doing is finding any thread you can to post his inane analysis. If you really think the S&P is going to 100, have you built yourself a bunker with 20 years supply of food and water, like those idiots who thought the world was going to end on Jan. 1, 2000????