Global Financial Crisis (1 Viewer)

Dostoevsky

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Administrator
May 27, 2007
81,663
#1
I've seen some people discussing about it so I wanted to open this thread.

It started bad don't you think heh.So many people lost their jobs worldwide and it's not even started yet IMO.The Great Depression to happen again?

Dow Jones Industrial Average Index had dropped more than 50% from its Summer 2008 peak.Few days ago the bank of England announced up to 150 billion pounds of quantitative easing, increasing the risk of inflation. :pumpkin:

Money is going to vanish?And what do you think about all this?
 

Red

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Moderator
Nov 26, 2006
46,941
#2
Popular thread, Douchan. ;)

And I think that, sooner or later, what goes up, must come down.
 
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Dostoevsky

Dostoevsky

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Administrator
May 27, 2007
81,663
#3
Well it lasted for 4 years (in strong countries) last time it happend while somewhere else (like here) it lasted for almost 10 years.

Just look at this,it's scary
 

Red

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Moderator
Nov 26, 2006
46,941
#4
It would be scarier if you said what the colours meant.

I assume the brighter the red, the harder the country will be hit?
 

swag

L'autista
Administrator
Sep 23, 2003
75,375
#9
Take it from a guy who finds himself unemployed for the first time in 17 years because of it...

All this talk about "how will we ever recover from this tragedy?" Sure, a lot of people are hurt and affected. But damn, ask that of the Germans and Japanese after they had the shit bombed out of their countries in WWII. Things could always be worse, and people have found a way out. :pado:
 

Bjerknes

Senior Member
Mar 16, 2004
101,416
#11
My sort of topic!

This is a global economic meltdown. Nobody is safe from the contraction in economic activity and trade, and now nations with huge current account deficits will have to put their money on the table. The problem is, nobody has the money, so nations will eventually default and fail as states. We have already seen it with Iceland and we are on the brink of seeing it with Eastern European nations.

But the biggest disaster within this crisis will be the event that happens last... if it happens. The United States has more debt that world Gross Domestic Product, a debt that is impossible to repay. We have a risk of defaulting as a nation and if so, the country could collapse and that would have world implications - some better or worse for other countries. China could finally take over for us on the imperialistic front and I don't have to say the consequences of that.

I'd say our default risk is about 30%, but we can take measures to hedge against that, such as devaluating our currency to make the dollar a weaker currency, thus not owing as much in real terms. I think the biggest competition in the world will be who can devalue their currency the most, so that's why you see imbecilic bail out packages and stimulus bills that send fiat currencies into massive black holes. Unfortunately, the government will just get bigger and the people will suffer because of this currency devaluation.

Essentially, what the governments are doing is like taking a page out of the Zimbabwean school of Economics text, multiplying it by ten, and using it as policy for solving this financial crisis. 100 Billion notes will appear and we may still not have enough to buy a roll of toilet paper. :pumpkin:
 
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Dostoevsky

Dostoevsky

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Administrator
May 27, 2007
81,663
#13
Take it from a guy who finds himself unemployed for the first time in 17 years because of it...

All this talk about "how will we ever recover from this tragedy?" Sure, a lot of people are hurt and affected. But damn, ask that of the Germans and Japanese after they had the shit bombed out of their countries in WWII. Things could always be worse, and people have found a way out. :pado:
It's not gonna be the end of the world but it will take a lot of time to recover from this that's for sure.Major companies are already on the verge of dying and there's just too many people who lost their jobs and it's not over yet.

Prices are already dare I say huge but the crisis is not on it's highest level I guess.
 

swag

L'autista
Administrator
Sep 23, 2003
75,375
#16
It's going to take a lot of time to recover. And I expect tons more job losses to come.

Maybe I'm just putting a smilie face on a nuclear warhead here. But at the same time, our world behaviors and habits up to this point were entirely unsustainable. Better to deflate bubbles earlier, and we caught this one kind of late.

Every chump speculating on Las Vegas housing with interest-only loans: FAIL
Every financial investment chump who used leverage and wishful thinking to try to outsmart low interest rates: FAIL
Rampant consumerism and the Hummer lifestyle: FAIL
Emerging market economies all trying to emulate the rampant consumerism and Hummer lifestyles of G-8 nations: FAIL
 
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Dostoevsky

Dostoevsky

Tzu
Administrator
May 27, 2007
81,663
#17
My sort of topic!

This is a global economic meltdown. Nobody is safe from the contraction in economic activity and trade, and now nations with huge current account deficits will have to put their money on the table. The problem is, nobody has the money, so nations will eventually default and fail as states.
:tup:

But the biggest disaster within this crisis will be the event that happens last... if it happens. The United States has more debt that world Gross Domestic Product, a debt that is impossible to repay. We have a risk of defaulting as a nation and if so, the country could collapse and that would have world implications - some better or worse for other countries. China could finally take over for us on the imperialistic front and I don't have to say the consequences of that.
Yeah I think bad things are going to happen to you guys.I think (no offence) that you're in deep shit with all those debts you have so far.I bet people are going to blame Obama. :rolleyes: God forbit if inflactions come...I was just a kid when one hyperinflation happened here in Serbia and it's really scary.You even struggle to buy 1 if you have some money.But this time it can be even worse since it's gonna hit whole world.
I see China in the top 3 while I think Russia might take over the first place if that happens.
 

swag

L'autista
Administrator
Sep 23, 2003
75,375
#18
:tup:



Yeah I think bad things are going to happen to you guys.I think (no offence) that you're in deep shit with all those debts you have so far.I bet people are going to blame Obama. :rolleyes: God forbit if inflactions come...I was just a kid when one hyperinflation happened here in Serbia and it's really scary.You even struggle to buy 1 if you have some money.But this time it can be even worse since it's gonna hit whole world.
I see China in the top 3 while I think Russia might take over the first place if that happens.
But Russia honestly doesn't have squat going for it besides oil (and who's buying that these days with all the surpluses sitting idle in tankers?) and a sinister shadow leader.
 
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Dostoevsky

Dostoevsky

Tzu
Administrator
May 27, 2007
81,663
#20
But Russia honestly doesn't have squat going for it besides oil (and who's buying that these days with all the surpluses sitting idle in tankers?) and a sinister shadow leader.
Yeah I guess you have a point.

What do you think it's going to happen with all the :money: ?It was Andy or Canardo who mentioned that people are investing into gold and silver already.
 

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