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The US is on an unsustainable path of debt explosion, don't beleive me you can ask the IMF - http://www.scribd.co...5782?width=1280
The massive issuance and record low yield of bonds will not last for ever and a return to historical norms will leave the US paying massive sums to service its debt alone. And the zombie banks will lose yet more money. In short the governments are brewing the worse crisis of all by their short termism.
And remember, governments don't create wealth they just shift it around, inefficiently.
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Posts I've Made
In Topic: Financial Crisis
2012-05-21 22:57:35
churchill, on 2012-05-21 20:43:47, said:
Where is the growth coming from especially if China is , as it seems , now having problems .
It makes me laugh when people go on about the Chinese hard landing i mean they're only expected to have 7.5% growth this year
Europe will not see that level of growth in 100 years!
China is rebalancing their economy to a more internally driven model, moderating inflation, deflating a housing bubble in the tier 1, 2 cities and reducing income disparity over a 5 year + period. This is a known fact. This necessitates a moderation in growth.
Maybe i watch the idiots on bloomberg too much they just seem totally brainless.
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In Topic: Financial Crisis
2012-05-17 10:15:25
midas, on 2012-05-16 19:00:49, said:
Japan has been sick for 20 years and things are even getting worse there now...
Japan is entirely different (and actually looking at decent economic growth for 2012), the euro area cannot slowly deflate. They could massively inflate but the Germans wouldn't stand for it. Merkel will already lose the next election for sure (2years).
In 20 years Europe will be sufficiently poor to start growing again, selling cheap goods to rich Asians. And those hot southern european women :-)
In Topic: Financial Crisis
2012-05-16 18:44:49
12DrinkMore, on 2012-05-12 21:47:10, said:
The only solution I can see is complete nationalisation of all the bloody commercial banking, and leave the investment banking lot hanging out to dry.
Inevitable i think. The problem isn't actually greece but the european, especially spanish, banks. In 2 months, or 2 years, greece will exit and the uncertainty will cause a run on banks, credit paralysis a la 2008. Spain will default, portugal, ireland probably and the germans will and can not pick up that bill. Bank runs will spread through europe.
This is why creative destruction should have been allowed to effect, now we will not just lose banks but whole countries which will fall.
I expect it will all be ok though, in about 20 years.
