Financial World Still Worried

Discussion in 'General Discussion' started by tulianr, Jun 11, 2012.

  1. tulianr

    tulianr Don Quixote de la Monkey

    Markets Relieved at Spain Bailout Deal; Financial World Still Worried

    Markets Relieved at Spain Bailout Deal, Financial World Still Worried - The Daily Beast


    (With all of the following being said, the writer still manages to provide some optimism.)

    Over the weekend, the Spanish government bowed to the necessity of seeking a bailout for its banking system. The amount was large: $125 billion in loans from the European Union to stave off the collapse of Spanish banks. The result was greeted with relief by financial markets around the world, with stocks rising, bond prices falling, and the outflows from southern European banks for the moment stanched.
    Nonetheless, the commentary from the financial world was a resounding, “Yes, but ...”
    The financial world has become almost universally convinced that “the Big One” is coming. What precisely that will entail is not exactly clear, but the consensus suggests that it will make whatever happened in the months after the collapse of Lehman Brothers in the fall of 2008 seem mild by comparison. It will be a global synchronous implosion of the fiat money system of paper currencies unchecked by impotent central banks and governments unable to coordinate policy quickly enough stave off collapse. Greece is seen as a possible trigger, the domino that will end up hindering Spain and then Italy from funding their debts, leading to the dissolution of the euro and generating global waves that imperil U.S. money-market funds and Asian stability.
    China may simultaneously suffer the hard economic landing that so many have feared for years, with real estate truly crashing, growth halting, and instability following. And yes, the U.S. government may approach the “fiscal cliff” in the fall and fail to pass new tax and spending laws, thereby triggering downgrades and economic contraction.
  2. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    This is just another finger in the dike. Eventually, its gonna blow.
    Guit_fishN likes this.
  3. RouteClearance

    RouteClearance Monkey+++

    What these jackasses fail to see is where is this money going to come from. Very simple, the printing press. These to big to fail banks world wide have stolen trillions from the common man since the late '70s. There will come a point that it will not be able to go on anymore. I rarely listen to anyone from the MSM, especially when it come to financial aspects.

    For those that would like to be able to understand the financial forensics of today's debt based "Global Economy", this is the guy that can lay it out in simple to understand English. Market-Ticker - MarketTicker Forums

    I also like Karl Denninger's politics also.
  4. DKR

    DKR Raconteur of the first stripe

    "[SIZE=-1]The Spanish bank bailout is only going to make matters worse for working people who’ll see the losses of corrupt financial institutions heaped onto their shoulders via higher taxes, cuts to social programs, and a firesale of publicly owned assets. They’ll pay the price while the crooks walk away scot-free."

    An interesting piece on the value (or lack thereof) on the bailout can be found [/SIZE][SIZE=-1]<url=http:"" 2012="" 06="" 11="" the-bailout-of-spain="">here
    The Bailout of Spain » Counterpunch: Tells the Facts, Names the Names

    And there is this -
    “Spain’s banks have over €300 billion in exposure to the real-estate sector, mostly through loans to developers. Around €180 billion of this exposure is considered “problematic” by Spain’s central bank.
    Estimates suggest that there are about 700,000 vacant newly built homes, but including repossessed properties the total could be as high as one million or even higher. At current sales levels, it will take many years to clear the backlog, which will be compounded by more properties being completed and coming onto the market. Housing prices have fallen by 15-20% but are forecast to fall eventually by as much as 50-60%. A severe recession and unemployment of 25% means that losses on Spain’s over €600 billion of home mortgages loans are likely to also rise.” (“The Spanish “Bailout”, Whoops – “Assistance”!, Satyajit Das, Naked Capitalism)

    Sound familiar?

    tulianr likes this.
  5. CATO

    CATO Monkey+++

  6. groovy mike

    groovy mike Immortal

    The only way I see it affecting me is that my pension fund is of course invested in stocks, mutual funds, bonds etc. It is well diversified but if the whole market goes down so does the well being of my pension fund. BUT - I have never considered the promise of a pension or a social security check as a for sure thing. IF I get it that's great but I'm not betting my life on either one. Its sort of like watching politics on the evening news. They talk and talk and warn of impending doom or promise utopia - but if I turn the set off for a month and see neither the stock market report, or hear one word of politics, even national or international news - I find that I am more relaxed - the world makes better sense and I when I tune in again I have missed absolutely nothing. They are still saying the exact same things. In fact they have been saying the exact same thing for decades.....

    Maybe I'm just jaded. Or just maybe I've reached a point of self sufficiency / reliance on God (I know they SOUND contradictory) that it really doesn't much matter to me what happens to the rest of the world. I know I'll be just fine. Nothing that really matters has anything to do with the talking heads and spin doctors on TV.

    I think I have pretty well concluded that the time is better spent listening to family and neighbors instead of strangers at the other end of the TV signal.<!-- google_ad_section_end -->
    Tracy and BTPost like this.
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