Nothing will stop the looming global depression; Central Banks out of ammo

Discussion in 'Economics' started by ByLoSellHi, Dec 18, 2008.

  1. You can't force incredibly frightened consumers, seeing mounting job losses, drastically falling home values, incredibly shrinking retirement portfolios, sticky high prices on medical expenses, taxes and food - to spend money. They will cut way back on everything but the bare essentials, and even cut back on those. You'll see seniors cutting pills in half, and you'll see people driving less, bundling up inside their homes and turning the thermostat down, and parents moving in with their grown children and young adults moving back with their parents.

    You can't force scared shitless businesses to stop laying off workers, expand (let alone not shrink) cap ex spending, and do anything and everything else to conserve cash for the storm that we're experiencing.

    Finally, you can't force banks to loan money, when they have no faith that the new loans won't turn into the same toxic sludge they're currently in the process of trying to clear from their balance sheets (courtesy of taxpayers the world over), AND WHEN THERE IS NO SECONDARY MARKET FOR SUCH PAPER, WHEN SUCH PAPER COULD HAVE BEEN SOLD THE SAME DAY THE LOANS WERE MADE IN YEARS PAST.

    England, Spain, Germany, Japan, China, Brazil, Australia, Italy, Ireland, Russia, Canada, the U.S. - all will be crushed.

    Gold will not provide any hedge.

    Good luck to everyone. The Mayans may have known things we didn't think they were capable of knowing, after all...
  2. just from the Topic of a thread I know that the poster is either BuyLowSellHigh or Port1385.
  3. And yet you can't muster an intelligent or substantive response.

  4. yes, sorry about that. The thing is that you are also adding nothing new. It has all been said already.
    But I tell you something that may surprise you:
    People will still be eating, buying cars, building homes etc. long time after we both will be gone and you need companies to do that.
    Stocks did advance 20% from its low and you and the other 50 permanent Doom-sayers here in ET continue to convince themselves that the people buying stocks at ES750 are freaking idiots.
  5. Blah, blah, blah.

    Oil is very necessary to peoples' everyday lives, yet that mofo keeps falling.

    You long oil yet?
  6. I like the fact that oil keeps on falling. I am not long oil since the contango situation is bad enough not to invest in oil even if I would be bullish for oil. But I do think that in 1 year we will see higher prices than now.

    The typical ET Doom-Sayer thinks rising oil price is the end of the world (it was for them just a few months ago !) and when the oil price starts falling then he converts and tells us that a falling oil price is the end of the world. No matter what happens, its always the end of the world for them.

    I really feel sorry for you guys since I don't think you are even able to enjoy your life with so much fear and so less confidence inside you.

    What do you own ?
    Where are you invested ?
    Do you own cash ? Do you own bonds ? Do you feel safe in this investment ?
    You are always invested into something (unless you own nothing) so please tell me where you have your money right now...
  7. I don't have any fear, because I've lived well within my means, unlike most sheeple.

    If you have no debt, or even better yet, are liquid (the more the better), you have nothing to fear as you'll be able to provide everything necessary for a stable life.

    Deflation is ongoing and will intensify even with huge amounts of electronic transfusions from Central Banks...those with debt are going to find that each dollar they borrowed in the past and that now has to be paid back will be harder to do so (deflation is terrible for debtors, as each dollar they pay back is worth more than the ones they borrowed).

    If one is saddled with debt in this environment, good luck and G_d Bless.
  8. If we're facing a Global Depression #2 then NOTHING and NOBODY is 100% safe - just in my opinion. No currency, no government, no hard asset, no bank, no broker, nothing, nowhere globally.

    If you are serious with your predictions (which would have to include a number of emerging markets or even developed markets devaluations and national defaults), you should be very scared, regardless of where your money is.

    Russia is warning Ukraine to pay its gaz debt or be cut from supply.

    That's the kind of situation that could evolve badly and hurt everyone.

    What can Europe do when on of its members is unable to pay the price for its basic needs and risk provoking lower supply all over Europe?
  10. Do us all a favor and STFU. You post so much useless shit on here noone takes you for real.

    Go rake the leaves in front of your lawn. Get some fresh air.
    #10     Dec 18, 2008