Spain: who is responsible for the property bubble? - Credit Writedowns
Spain: who is responsible for the property bubble? - Credit Writedowns
As recession takes hold, European citizens are starting to ask questions about how they were led into this, the deepest downturn in three-quarters of a century. The leading Spanish daily El Pais published a very thoughtful article today asking how things had unravelled so quickly and so spectacularly in Spain, previously one of the fastest growing economies in Europe.
The Crisis of Credit Visualized
Harvard Narcissists With MBAs Killed Wall Street: Kevin Hassett
The same is true of the financial sector. Back when Wall Street was run by individuals without fancy degrees, they had a proper skepticism toward fancy models and managed their risks with a great deal more humility and caution. Only when failed models became canon did catastrophe strike.Wall Street didn’t die in spite of being run by our best and brightest. It died because of that fact.
There’s no new motor to drive the economy
There’s no new motor to drive the economy | Matthew Parris - Times Online
We need to produce. The problem is we don’t have the skill-set anymore.Everyone has degrees in Golf Course Management, Beauty, Pet Psychology & Britney Spears.
James Stephenson, Coventry,
The way the brain buys
The science of shopping | The way the brain buys | The Economist
IT MAY have occurred to you, during the course of a dismal trawl round a supermarket indistinguishable from every other supermarket you have ever been into, to wonder why they are all the same. The answer is more sinister than depressing. It is not because the companies that operate them lack imagination. It is because they are all versed in the science of persuading people to buy things—a science that, thanks to technological advances, is beginning to unlock the innermost secrets of the consumer’s mind.
CynicusEconomicus: 2009 - The Year of the Fall of the West
CynicusEconomicus: 2009 - The Year of the Fall of the West
It is a very big question. I am not really sure that I know the answer. I am not sure how bad things may yet become. Many months ago, a commentator on a post asked whether I thought that there would be food shortages in the UK in the future. I suggested that this would not be the case, and still think that it will not become that severe. However, I do think that the UK is heading towards that kind of severity, though will never reach that point. There are still enough companies in the UK that can create genuine wealth, that are competitive in the world, but they are too few in comparison to the needs of the country. This has been evident for many years in the ongoing balance of trade deficits.
My comment:
Great post. Just one thing caught my attention:
You said “I do think that the UK is heading towards that kind of severity… (food shortages) though will never reach that point. There are still enough companies in the UK that can create genuine wealth, that are competitive in the world”
You believe we won’t see food shortages. I do.
The companies that are still competitive in the UK will flight as the situation deteriorates. No point in staying in a country with shrinking individual purchasing power, rising unemployment -so less people can buy your services- and a currency and hard assets -property, machinery- depreciating by the minute.
The capital will rapidly get out of here as things get tougher. This is already happening as yo u know.
Politicians will let the capital leave because they’ll be either pressured into doing so, or simply because wealthy politicians themselves will benefit of not impeding this massive and rapid capital flight.
There will also be “noise” by populist politicians and the masses on “spreading the wealth” more evenly, increasing taxes to the wealthy. This will only accelerate the capital flight process. End result: an economy that does not produce anything competitively exportable, where people can’t find jobs and small amounts of money change hands very slowly. If we add to this the fact that most western societies are not geared to producing their own food, why can you not see food shortages in the future?
We’ll be in Great Depression 2 by 2011 — here are 30 reasons why - MarketWatch
We pinpointed the dot-com crash at its peak, in a March 20, 2000 column: “Next crash? Sorry, you won’t see it coming.” Bulls-eye: The dot-com bubble popped. The economy went into a 30-month recession. The stock market lost $8 trillion. And today, over eight years later, the market is still roughly 40% below its 2000 peak. See previous Paul B. Farrell.
Factor in inflation and the average stock has lost well over 50% of its value. Stocks have proven to be a very big loser, a bad investment for Americans, thanks to Wall Street’s selfish greed, plus the complicity and naiveté of politicians, press and public.
Letters of Credit and The Disruption of International Trade: Systemic Risk, Contagion and Trade Finance
If cargo trade stops, the wheat doesn’t get exported. If the wheat doesn’t get exported, the mill has nothing to grind into flour. If there is no flour, the bakeries and food processors can’t produce bread and pasta and other foods. If there are no foods shipped from the bakeries and factories, there are no foods in the shops. If there are no foods in the shops, people go hungry. If people go hungry their children go hungry. When children go hungry, people riot and governments fall.
The Great Depression of the 21st Century: Collapse of the Real Economy
The Great Depression of the 21st Century: Collapse of the Real Economy
The November 15 G-20 Financial Summit in Washington upholds the Washington-Wall Street consensus.While formally presenting a project to restore financial stability, in practice, the hegemony of Wall Street remains unscathed. The tendency is towards a unipolar monetary system dominated by the United States and upheld by US military superiority.
The architects of financial disaster under the 1999 Gramm-Leach-Bliley Financial Services Modernization Act (FSMA) have been entrusted with the task of mitigating the crisis, which they themselves created. They are the cause of financial collapse.
The G20 Financial Summit doesn’t question the legitimacy of the hedge funds and the various instruments of derivative trade. The final communiqué includes an imprecise and blurred commitment “to better regulate hedge funds and create more transparency in mortgage-related securities in a bid to halt a global economic slide.”
A solution to this crisis can only be brought about through a process of “financial disarmament” as initially formulated by John Maynard Keynes, which forcefully challenges the hegemony of the Wall Street financial institutions including their control over the monetary policy.
Who is Thriving in the Credit Crisis?
Bucking the Trend: Who is Thriving in the Credit Crisis? | FastUpFront: Small Business Blog
Bucking the Trend: Who is Thriving in the Credit Crisis?By Gary Barzel on November 4, 2008 in Business Economy |
With concern growing over the health of the global economy, many consumers and businesses alike are doing whatever they can to ride out the impending storm- and that can spell growth and financial opportunity for those who can capitalize on it.
So which sectors should still thrive in the current credit crisis?…
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About Javier Marti
As an Independent Strategy Consultant, speaker and founder of HypnoticSales.co.uk and SunshineHypnosis.co.uk, Javier is dedicated to help organizations, small businesses and individuals to optimize systems, increase profits and make better choices in business and in life. He is the author of the book "Mobile, Domains & The Future"
Javier also shares his knowledge and experience through information-packed and entertaining presentations in English and Spanish.
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