Niemand
14th March 2009, 01:02
There are a number of startling factors for investors to consider when evaluating the possibility of a larger looming economic crises. A few authors have guessed that the majority of writedowns are now done and that the worst may be past us. From the most recent news, I believe we may extend losses past the most recent credit crises fueled by collateralized debt. We may soon face a banking crises larger than the Savings and Loan crises of the late 1980’s.
Here are a few factors to consider:
1) The Fed may increase interest rates in the near future. An increase in rates is bullish for the dollar and necessary to fight inflation. An increase would add tremendous pressure to an already fragile housing market by making payments on adjustable rate mortgages more expensive. Increases would also make borrowing more expensive and would restrict access to already tight credit. The potential impact of rate increases is unknown.
2) Any failure in the derivatives market would signal the beginning of an imminent crash. Estimates vary wildly over the total value of the derivatives market. The Financial Times recently estimated that the size of the derivatives markets stood at roughly $450 trillion dollars. As of December 2007, The Bank of International Settlements estimated that the amount of listed credit derivatives, i.e. tradable in some form through an exchange, stood at roughly $548 trillion. The amount of OTC derivatives (http://www.bis.org/statistics/derstats.htm) was estimated at $596 trillion notional value. This brings the total derivatives estimate by The Bank of International Settlements to 1,140 trillion.
http://www.rawgreed.com/a-possible-economic-crash
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Comrades, this is but further proof that capitalism itself is threatened with implosion. Surely, this will serve such a blow to every single human being alive that capitalism itself is unlikely to survive through the next decade. In fact, I'd be willing to say that a turning point will be made in 2012 as it will be our historical analogy to 1933 as both periods were four years after the Great Crashes.
I think this crisis has presented us with a unique situation in history. Not one period in history has come close to the collapse which we are currently experiencing. The only situation I could see mirroring this disaster would be that of the collapse of the Roman Empire.
While I may sound alarmist at the moment, which I may very well be, I don't think I'm the only one who can't comprehend one quadrillion dollars, much less a billion. I bring up a quadrillion as I believe that a quadrillion is 1,000 trillions, which is the only amount that comes close to how deep we're in this shit. Of course, we may all be surprised by the ruling class, as necessity is the mother of all invention, especially in times of life-threatening disaster.
However, it is of my opinion that even with the intervention of fascism by the ruling class, capitalism's fate has been sealed and our lives are heretofore damned to abject poverty. I just can't see how capitalism could possibly recover from this.
Here are a few factors to consider:
1) The Fed may increase interest rates in the near future. An increase in rates is bullish for the dollar and necessary to fight inflation. An increase would add tremendous pressure to an already fragile housing market by making payments on adjustable rate mortgages more expensive. Increases would also make borrowing more expensive and would restrict access to already tight credit. The potential impact of rate increases is unknown.
2) Any failure in the derivatives market would signal the beginning of an imminent crash. Estimates vary wildly over the total value of the derivatives market. The Financial Times recently estimated that the size of the derivatives markets stood at roughly $450 trillion dollars. As of December 2007, The Bank of International Settlements estimated that the amount of listed credit derivatives, i.e. tradable in some form through an exchange, stood at roughly $548 trillion. The amount of OTC derivatives (http://www.bis.org/statistics/derstats.htm) was estimated at $596 trillion notional value. This brings the total derivatives estimate by The Bank of International Settlements to 1,140 trillion.
http://www.rawgreed.com/a-possible-economic-crash
_________________________________
Comrades, this is but further proof that capitalism itself is threatened with implosion. Surely, this will serve such a blow to every single human being alive that capitalism itself is unlikely to survive through the next decade. In fact, I'd be willing to say that a turning point will be made in 2012 as it will be our historical analogy to 1933 as both periods were four years after the Great Crashes.
I think this crisis has presented us with a unique situation in history. Not one period in history has come close to the collapse which we are currently experiencing. The only situation I could see mirroring this disaster would be that of the collapse of the Roman Empire.
While I may sound alarmist at the moment, which I may very well be, I don't think I'm the only one who can't comprehend one quadrillion dollars, much less a billion. I bring up a quadrillion as I believe that a quadrillion is 1,000 trillions, which is the only amount that comes close to how deep we're in this shit. Of course, we may all be surprised by the ruling class, as necessity is the mother of all invention, especially in times of life-threatening disaster.
However, it is of my opinion that even with the intervention of fascism by the ruling class, capitalism's fate has been sealed and our lives are heretofore damned to abject poverty. I just can't see how capitalism could possibly recover from this.