World economy and plane crash

The world economy will crash?

  • Yes

    Votes: 20 52.6%

  • No

    Votes: 18 47.4%
  • Total voters
    38
Quote from bearice:

I think I found the answer.

It only costs 12 cents to make a 100 dollar bill.

It will probably only costs 12 cents to make a 10,000 dollar bill.

Is this the fatal problem?
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No...it doesnt cost anything to print money because they pay for it with the money they print. Correct me if I'm wrong. :P
 
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?

Quote from bearice:

This reminds me of world economy.

There was an Alaskan airlines big plane flying at 31,000 feet. The vertical stabilizer on the tail of this plane was jammed. The pilots were having difficulty controlling the plane. Suddenly the plane started falling from the sky nose first and it fell some 8000 feet but the pilots managed to control the plane and save it.

But the pilots knew that there is some terrible/fatal problem with the plane and they kept flying the plane. They took the help of maintenance team on the ground. But even they could not solve the problem. The pilots tried to calm down the passengers saying “everything is under control and they will land at Los Angeles airport safely”.

Now suddenly the vertical stabilizer on the tail of this plane broke away completely and disappeared and the plane started falling nose first and then it was completely inverted/upside down and kept falling and ultimately crashed into the sea/ocean killing everybody. It was a terrifying fall. You should have seen it. This plane was doomed right from the start when it started flying.

This reminds me of the world economy which is doomed but flying. The world economy went into an 8000 feet fall in year 2007 but the pilots (world leaders) managed to keep it flying by throwing/donating multi-trillion bail-outs. But there is a fatal problem with the economy. The world leaders try to calm the world saying everything in under control and world economy is safe (just as the pilots of the doomed plane said). But the world leaders know the world economy is doomed (same as pilots). The world leaders are taking help from everybody and everything they can but I think nobody can help (same as pilots).

Now the vertical stabilizer of the world economy (I do not know) will break away completely and the economy (plane) will crash.

I did not want to post this here but the TV program is coming back again and again.

Anyway, this had to come out someday.
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Quote from brokenmarkets:

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.
More...
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.
 
Quote from bearice:

I agree other countries can survive and grow on their own but there will be massive problems worldwide when western/rich countries go down.

There is a fatal flaw/problem with the world economy right from the start which I do not know. Somebody will have to help me regarding this.
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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.
 
Quote from Garbage Can Ray:

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.
More...
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"
 
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