Worldwide Depression, A Possible Reality

L

libertad

http://www.rgemonitor.com/roubini-m...rrest_the_risk_of_the_mother_of_all_bank_runs

Roubini is perhaps the most qualified in terms of reasoning to date regarding the crisis...and should be listened to...

The failure to rollover short term corporate paper is more than just a wake up call.....

..................................................

After the dust clears though...which is just saying what to do after many legal obligations regarding debts fail.....is to gradually make better legal agreements at prices reflecting drastically reduced leverage....

The average leverage per family more than tripled from the 1960's....and the average corporate leverage went ballistic because of derivatives....

Needless to say....one should finish off the derivatives game....
........................................................

When the legal paper crumbles, the assets which were tagged with leveraged prices will reflect much better pricing.....

Next time around....leave derivatives out of the game.....
 
Quote from libertad:

http://www.rgemonitor.com/roubini-m...rrest_the_risk_of_the_mother_of_all_bank_runs

Roubini is perhaps the most qualified in terms of reasoning to date regarding the crisis...and should be listened to...

The failure to rollover short term corporate paper is more than just a wake up call.....

..................................................

After the dust clears though...which is just saying what to do after many legal obligations regarding debts fail.....is to gradually make better legal agreements at prices reflecting drastically reduced leverage....

The average leverage per family more than tripled from the 1960's....and the average corporate leverage went ballistic because of derivatives....

Needless to say....one should finish off the derivatives game....
........................................................

When the legal paper crumbles, the assets which were tagged with leveraged prices will reflect much better pricing.....

Next time around....leave derivatives out of the game.....
More...


Non Exchange traded derivatives are the problem. NOT exchange traded derivatives. There is no counterparty risk with exchange traded derivatives.
 
The depression, if there is one, will be isolated to the US and countries that are overleveraged. But much of the middle east is flush with enormous builds of cash. China still has lots of cash and an enormous stockpile of commodities.
 
What is of particular interest is that there are a lot of assets around....

Even the McMansions do not care about legal agreements....they are just bricks, land, and mortar....and will be there tomorrow, empty or not.....

Legal impediments about prices hamper the usage of physical assets....

........................................................

It is pretty clear that whether anyone likes it or not....the excesses are being wiped out.....

This is a good/bad thing.

What's a bank going to do....sit and watch empty houses rot for 20 years ?
....................................................

Much of this has occurred because of political quackanomics and the lack of qualified people in important positions....
.................................................

The faster the better....

10% consumption tax

Government by township....
No more two party advertising governments...

Important government projects voted per township via internet granted to the most qualified....

Turn the government buildings in Washington into condos....

Worldwide direct access stock exchange...

Banks by Township....discounted low levered loans only....

Education...internet focused....

Medicine...not run as a business....innovations rewarded....

Interest rates ...adequate for savings


etc...etc...etc....
........................................................
.................................................
 
Quote from RiceRocket:

The depression, if there is one, will be isolated to the US and countries that are overleveraged. But much of the middle east is flush with enormous builds of cash. China still has lots of cash and an enormous stockpile of commodities.
More...

Ya, except every day is already a "depression" for 85% of the people that live in the middle east and china.
 
roubini was way off in the timing of his call. he kept calling for an immediate crash many moons before even a quiver was felt from the credit markets.
 
Very true...

But let me see....

Who from the list would you rather have as an economic advisor....

Bush
Cheney
Greenspan
Roubini
Chavez
Bernanke
Paulson
Pelosi
B.Frank
OBama
McCain
 
You must log in or register to reply here.
Back
Top