So here’s the nightmare scenario, which we hope will not happen:
Thousands of very smart speculators have accumulated the biggest ever speculative physical raw material positions ever witnessed in the belief that either the dollar will collapse or an ongoing global ‘Supercycle’ will shake off the effects of the credit crunch and resume business as usual. They are funded in this venture by some of the lowest interest rates on record. What are the threats to their thesis?. They are as follows :
1. Governments, having pumped huge amounts of money into the global system, find they are running our of fire-power even while economies are still at the incubation-stage of recovery (i.e. the kind of stage we saw displayed last week in the poor USA housing starts data). Some governments find that suddenly their bonds are considered to be ‘toxic’ and a far higher interest rate is demanded for ongoing participation.
2. The global economy not only experiences a slower upturn than the consensus view, but after the recent inventory-restocking phase is over, it relapses into a W-shaped recession. More jobs are lost and people who have been unemployed but still able to keep up their mortgage payments (because of near-zero interest rates) are suddenly defaulting. Banks finally
have to write down the value of these assets and housing markets around the world are flooded with new inventory. New-build is out of the question. Orders for new fridges, washing machines, stoves, taps and other items
that metals so depend on for demand, simply freeze.
LINK HERE
Prepare for the Great Depression.
Survival Seeds
Subprime collapse 2 will certainly happen as nothing has been done to correct the underlying problem which caused the first collapse.
ReplyDeleteTodo va a terminar mal. Tenemos que preparamos, solo DIOS libra de todo lo que viene.
ReplyDeleteHow could someone not see what is going to happen and convert out of their ARM now?
ReplyDeleteWhen; oh when; will we EVER learn ! You, I, We / will NEVER know ANYTHING for certain beforehand -- anybody who tells you different
ReplyDeleteis merely selling you a load of sheep dip.
It is merely ones own speculation about a given scenario given their own life's experiences; sometimes right / sometimes wrong. Best you can do ? Prepare for the worst case scenario and live within' your means --- then you really don't have to worry much - now do you?
I'm sorry but I found the cited article to be uncohesive at best. The author tries to make what point, it seems he forgets before he makes it and diverges into another wild tangent.
ReplyDeleteThe 'worst case nightmare' he states is ridiculously tame compared to what is going to actually happen.
I think he's a disinfo agent trying to calm the sheep by diseminating propaganda that portrays the worst case scenario as being
not so bad at all.
hooray crash baby crash
ReplyDeletesheep work the trash
the smart print cash
I love how quickly and unthinkingly people call out others as disinfo agents simply because they do not agree with them. Look, bad journalists are not "dinsinfo agents" any more than a poorly written novel is a tall rabbit with fangs wanting to kill you.
ReplyDeletehey Johnny Canuck here.Your sub prime crisis will pale in comparison the the bubble being inflated in the Canadain housing industry by the Canadian Federal Government.This puppy is going to blow soon..over 95% Fed backed mortages at super low rates with o down.People i know in high sources tell me not to worry as a homeowner the Canadian Goverment can handle it.When the bubble burst thats when all hell will break loose in Beaverland.We wont be so smug anymore.See you in the land of moose and beaver.j.Canuk
ReplyDelete