Second Dip

[Shpira]

Re: Second Dip



The bull is dead and even China is joining the trend with their latest figures

[Illuminate]

Re: Second Dip

I think this guy has put it pretty well:

ALAN KOHLER, PRESENTER: This week's panic on global markets is almost entirely a reaction to dysfunctional politics.

The long, slow default of Greece has left Europe's financial system on the edge of a precipice, but the political leaders have so far only been able or willing to come up with short-term solutions. Stop-gap liquidity is being provided, but its continuation is subject to uncertain political whim.

In the United States, they can't even manage short-term solutions to the fading economic recovery and the refusal of the labour and housing markets to recover at all. More monetary and fiscal stimulus is obviously required while the housing sector deleverages and the corporate sectors sits on its $2 trillion in cash, but Congress and the White House are engaged in a stand-off and now the Federal Reserve is firing blanks.

This week's action by the Fed was worse than useless, selling short-dated bonds and buying long-term bonds with the aim of getting the long-term mortgage rates down simply highlighted the fact that money printing, where you buy bonds but don't sell anything first, is finished.

Moreover, there's now an official chorus of anxious, impotent bleating from the IMF, the Fed and the World Bank. No wonder investors are panicking. It could get a lot worse from here.

http://www.abc.net.au/insidebusiness/content/2011/s3325279.htm

So this week we see the inclusion of Operation Twist - the safe haven of lowering short term bonds.
Again, the above mentioned point of short-term solutions by just changing the Fed's portfolio is again not a holistic approach, but having said that this may ease the unemployment rate and consumer debts/loans but in the long run can it change anything?

The leaders talk of the 3 R's; Repair, Restore, and Rebalance but one thing in certainty is the R on every investors mind: Recession.

[bobjuice]

Re: Second Dip

Yeah it looks bad news. Feels to me like the whole system is on the verge of collapse, I think this goes beyond the usual cycles of fluctuating fortunes and currency

[Illuminate]

Re: Second Dip

The season has fall has hit the northern hemisphere. Well tis' the reason for the season.

[Shpira]

Re: Second Dip

I would say today is the beginning...

[Illuminate]

Re: Second Dip

Thank you Greece: Long's on CFD's and now we wait...1 more year
Smiles all round

[Illuminate]

Re: Second Dip

IMF Europe director Antonio Borges warned today that a global recession in 2012 "can't be ruled out," citing a possibility that "activity will turn downwards."
The IMF released its economic outlook for Europe in Brussels, at a time when the eurozone sovereign debt crisis is mutating into a new banking crisis, and "therefore we recommend changing economic policy" away from austerity and back towards stimulus, the 100-page report said.
Borges said there had been a major change in market sentiments in recent months, and "many investors all over the world became far more risk averse than before."
He added: "We still predict growth in 2012, but very modest," with the probability the economy will "stall" by year-end making recession a live threat, especially in Europe.

Changes in fiscal policy would be required, Borges said.
"If ever there was a more significant recession in Europe - I hope that is not the case but we cannot exlude it - then we might have changed recommendations," he said.
"All those countries with fiscal leeway might want to consider that," he said, though he specifically ruled out Italy and Spain.

http://www.heraldsun.com.au/news/breaking-news/imf-warns-global-recession-in-2012-cant-be-ruled-out/story-e6frf7jx-1226159620539

Hooray!

[bobjuice]

Re: Second Dip

QE3 here we come

£75bn of it, wish my printer could do that


Osborne today: QE is 'appropriate tool'.

On 09.01.09: "QE is the last resort of desperate governments when all other policies have failed".

[88Mariner]

Re: Second Dip

£75bn of it, wish my printer could do that


Osborne today: QE is 'appropriate tool'.

On 09.01.09: "QE is the last resort of desperate governments when all other policies have failed".

every time i hear the term 'quantitative easing' i think if a commoner bending over with a big giant fist full of cash being eased into the sphincter.

funny you point out the printer bit. makes me wonder...will there be a time when the government can't print fast enough and they just up and decide to tell people "print your own money, it works faster"....

[Shpira]

Re: Second Dip

http://insider.thomsonreuters.com/link.html?cn=uidTWASIA&cid=265773&shareToken=MzpkM zJjMDcxNi03YTcyLTQ5YzAtYWEyZC05ZWY4Y2MyZGFiMjU%3D& start=0&end=303

This guy is pretty damn clever...

[Shpira]

Re: Second Dip

and this is where we are at...fucking mental!

http://www.zerohedge.com/news/primex-time-next-subprime-trade-has-come

[Illuminate]

Re: Second Dip

^Yeah was reading that before.
Shits hit the fan pretty bad...

[bobjuice]

Re: Second Dip

funny you point out the printer bit. makes me wonder...will there be a time when the government can't print fast enough and they just up and decide to tell people "print your own money, it works faster"....

I can't help but think, by then, the cost of printer ink will mean it's not worth anyone's while

[vinnie97]

Re: Second Dip

Cashless society, here we come...

And it's all because of a few bumbling financial firms who became a little too chummy with the govt. (and representatives who allowed it to happen, along with attempting to make the American "dream" available even to those who couldn't afford it) and as a result became too big to fail. Sick, sick, SICK.

[Illuminate]

Re: Second Dip

Cashless society, here we come...

And it's all because of a few bumbling financial firms who became a little too chummy with the govt. (and representatives who allowed it to happen, along with attempting to make the American "dream" available even to those who couldn't afford it) and as a result became too big to fail. Sick, sick, SICK.

This sums it up for me. Well said.