it's amazing how long the economy's been propped up on hot air.
Those who pay attention know it is just a matter of time before the next meltdown.
Periodic crisis are the way our economy recovers from some basic mistakes.
Topic: World Economy 'More Fragile than Before 2007 Crash' - page 2. (Read 1574 times)
Those who pay attention know it is just a matter of time before the next meltdown.
Periodic crisis are the way our economy recovers from some basic mistakes.
it's amazing how long the economy's been propped up on hot air.
Those who pay attention know it is just a matter of time before the next meltdown.
it's amazing how long the economy's been propped up on hot air.
you can't keep kicking the ball down the road. the longer you kick it, the bigger the explosion we'll see. looks like it might be the great depression 2.0. that would be pretty damn significant, and not just that, we could see our economic world dominance dwindle because of it. look at what happened after the first one... it led the way to make us the world's first superpower.
This is just somebody confirming what most of us already know in the first place, as for the Chinese economy slowing, despite what arrogant Americans believe they are propping up western economies by lending money to us, we're basically scamming them out of their money by giving them worthless treasury bonds and the 'promise' that we'll pay it back within a set period of oh, past their lifetime.
It's the equivalent of me asking you for some money and promising to pay it back after you're dead, the amazing thing is everybody keeps falling for it! As long as people get their free stuff now it's all okay.
It's the equivalent of me asking you for some money and promising to pay it back after you're dead, the amazing thing is everybody keeps falling for it! As long as people get their free stuff now it's all okay.
For me this is obvious.
Year after year Obama increase the country's debt ceiling(that is: bigger bomb when it blows up), this year the US government stalled because of no agreement about how spend the money.
Also european governments with their states spending more and more, and with low economic growing and high unemployment.
Even chinese growing is slowing down
Year after year Obama increase the country's debt ceiling(that is: bigger bomb when it blows up), this year the US government stalled because of no agreement about how spend the money.
Also european governments with their states spending more and more, and with low economic growing and high unemployment.
Even chinese growing is slowing down
BIS chief fears fresh Lehman from worldwide debt surge
More...http://www.telegraph.co.uk/finance/markets/10965052/Bank-for-International-Settlements-fears-fresh-Lehman-crisis-from-worldwide-debt-surge.html
Quote
The world economy is just as vulnerable to a financial crisis as it was in 2007, with the added danger that debt ratios are now far higher and emerging markets have been drawn into the fire as well, the Bank for International Settlements has warned.
Jaime Caruana, head of the Swiss-based financial watchdog, said investors were ignoring the risk of monetary tightening in their voracious hunt for yield.
“Markets seem to be considering only a very narrow spectrum of potential outcomes. They have become convinced that monetary conditions will remain easy for a very long time, and may be taking more assurance than central banks wish to give,” he told The Telegraph.
Mr Caruana said the international system is in many ways more fragile than it was in the build-up to the Lehman crisis. Debt ratios in the developed economies have risen by 20 percentage points to 275pc of GDP since then.
Credit spreads have fallen to to wafer-thin levels. Companies are borrowing heavily to buy back their own shares. The BIS said 40pc of syndicated loans are to sub-investment grade borrowers, a higher ratio than in 2007, with ever fewer protection covenants for creditors.
Jaime Caruana, head of the Swiss-based financial watchdog, said investors were ignoring the risk of monetary tightening in their voracious hunt for yield.
“Markets seem to be considering only a very narrow spectrum of potential outcomes. They have become convinced that monetary conditions will remain easy for a very long time, and may be taking more assurance than central banks wish to give,” he told The Telegraph.
Mr Caruana said the international system is in many ways more fragile than it was in the build-up to the Lehman crisis. Debt ratios in the developed economies have risen by 20 percentage points to 275pc of GDP since then.
Credit spreads have fallen to to wafer-thin levels. Companies are borrowing heavily to buy back their own shares. The BIS said 40pc of syndicated loans are to sub-investment grade borrowers, a higher ratio than in 2007, with ever fewer protection covenants for creditors.
More...http://www.telegraph.co.uk/finance/markets/10965052/Bank-for-International-Settlements-fears-fresh-Lehman-crisis-from-worldwide-debt-surge.html
Jump to: