No...it doesnt cost anything to print money because they pay for it with the money they print. Correct me if I'm wrong.
debt and corporate corrruption is what destroys companies nad destroys same with countriess...heavily in debt and corrupt gov't burearcrats will destroy cuontries and destroy wealth..uncontollable spending and debt.. countries aer just like companies.....you have incompetent employeess or corrupt employees etc..the country will go bankrupt. what happens when nobody wants to lend to the United states?
I have written many times earlier there is illegal partnership between giant companies and governments (every country). They are illegal allies. But everybody is quiet.
The fatal flaw is unsustainable debt levels in developed economies. The only way to deal with this is through fundamental, political change and significant personal sacrifice by citizens. Life would get more difficult for many, but we would have a very prosperous future to look forward to. THIS WILL NOT HAPPEN. Politicians and central banks do not think in the long term. They will/are leading us over the precipice. Your plane analogy is spot on. Have you seen what is going on in the bond markets? What do you think will happen if a sharp spike up in rates sweeps across the globe? Sovereign governments will default and the economy will come to a stand still. You have your inflection point. What is the solution to this problem? Print money. We would be in a deflationary depression right now if trillions had not been printed. The only solution is to print money endlessly. It might not even work. We might still get a depression very soon. If the money printing does work, the consequence will be inflation and asset bubbles across the globe. Not a bad time to be a trader. BUT eventually there will be another more catastrophic collapse, the intensity and consequences of which will be increased significantly because we didn't want to take the pain now. We wanted to print money and keep banging the financial heroin into our collective arms.
Please keep posting here your 100% valuable and intelligent suggestions/information. I have started this thread for discussion. Maybe some big people is also reading elitetrader forum and they will get the message. Small people are also strong and intelligent but they keep quiet for some reason.
Thanks Bearice. Maybe this should become the doom and gloom ET thread of choice. We have a nice title for that purpose and a very nice analogy provided by the OP. Another poster made a VERY important point. Us bears can come out of our caves and post on ZeroHedge and predict the end of the world on ET, but these prognostications are not tradeable. As far as maneuvering in the current market, they are totally useless - a major disadvantage if you allow them to color your thinking. Shit, I am VERY long right now. ES ripping more than 8 points higher in the overnight session! WTF? There has been no correction for how many handles in the ES now? That is the global liquidity wave, baby. Ride it. Writing this at 1 a.m. EST (I am in Colorado though). Tomorrow could be the breakout move. The key zone is 1,127-1,128 in the S&P. We closed on Wednesday right at 1,128. We have broken significantly higher in the overnight session, trading 1,136 right now. The one thing I think about being long term bearish and realizing that the system is severely fucked, is that whenever the shit starts to go down, DON'T EVEN THINK ABOUT PICKING A BOTTOM. Sell RIGHT and sit TIGHT! Might be years from now when the collapse comes, but it will come. We might be able to short Dow 20,000 and ride it down to 5,000. Hope not, but wouldn't surprise me too much if it happened.
Today I will write this here because I have been troubling elitetrader members from long time. I had sent a fax message to a big person but he did not reply. I think he got the message (not sure). I had sent an email to another big person but he did not reply. I received an email reply from another big person. He knows everything. But he is quiet. I received email reply from 2 more big persons. They also know everything. But they are quiet.
45 percent of world's wealth destroyed: Blackstone CEO (Reuters) - Private equity company Blackstone Group LP CEO Stephen Schwarzman said on Tuesday that up to 45 percent of the world's wealth has been destroyed by the global credit crisis. "Between 40 and 45 percent of the world's wealth has been destroyed in little less than a year and a half," Schwarzman told an audience at the Japan Society. "This is absolutely unprecedented in our lifetime." But the U.S. government is committed to the preservation of financial institutions, he said, and will do whatever it takes to restart the economy http://www.reuters.com/article/idUSTRE52966Z20090310
Is this true? For an "asset" to become "overvalued" such as stocks, real estate, commodities, the equivalent amount of "real money" or "cash" has to be invested into that asset. Example, USA real estate are worth $23 Trillion which means "$23 Trillion cash" has been invested into USA real estate so it is over-valued to $23 Trillion. Only when "actual cash" is invested into an asset equivalent to the monetary over-valuation, the asset becomes over-valued to that extent/amount. So, if world economy was worth $1,400 Trillion. This means $1,400 Trillion "real cash" has been invested. Ultimately now, world economy has suffered $650 Trillion "real cash losses"