"THE world is facing an avalanche of catastrophic bankruptcies and defaults that could lead to political and social upheaval, according to one leading global economist. William White, the chairman of the Organisation for Economic Co-operation and Development (OECD)'s review committee and former chief economist with the Bank of International Settlements made the dire predictions ... on the eve of the World Economic Forum in Davos. "The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up," Mr White said. "Debts have continued to build up over the last eight years and they have reached such levels in every part of the world that they have become a potent cause for mischief. "It will become obvious in the next recession that many of these debts will never be serviced or repaid, and this will be uncomfortable for a lot of people who think they own assets that are worth something. "The only question is whether we are able to look reality in the eye and face what is coming in an orderly fashion, or whether it will be disorderly. Debt jubilees have been going on for 5000 years, as far back as the Sumerians." Mr White said the European banking system already has about $US1 trillion in non-performing loans, many in emerging market economies, which have massive credit bubbles due to money printing policies enacted following the GFC." read more at: http://www.news.com.au/finance/econ...7/news-story/fdce76f0dff01a703227d4d6f6ac646c http://www.telegraph.co.uk/finance/...debt-defaults-fears-central-bank-veteran.html
It's more like GFC Chapter 2 http://forums.silverstackers.com/topic-71360-the-situation-is-worse-than-2007.html
Well I hope that GFC 2 is really actually happening right now. I'm sick of reading financial news everyday saying the end is upon us with nothing really happening at all. Its taken 8 full years for GFC2 to occur and at least now I can sit with my popcorn in hand and watch it all happen in front of me. During GFC 1 I was'nt aware of what was actually happening in the world and my internet skills wer'nt the sharpest. This time I will not miss out on all the action thats for sure!!!
To be honest I don't think you're sharper, because every week you make a post about how the economy is about to collapse and every week you don't have a job. Also, how many times have you said you're going to sit with your popcorn and watch? You wait on the edge of your seat for every Fed meeting because you're sure that everything is about to change... it's not. Stop waiting for the end of the economy and starting thinking about how a guy with no job is going to retire with no money and probably a smaller pension than people get now.
So you want thousands upon thousands of people to lose their jobs and homes just so you don't have to read about the economy/world reaching its nadir? It'll be even worse then as they'll actually have something to report on. Nobody will miss out on 'the action' but you could easily be waiting another 8 years.
Im calling it - The End is a clever troll perhaps. He comes on every now and again and drops a few lines that get a few people riled up and refrains from biting. Maybe he is sitting and watching whilst eating popcorn.....but its the responses he watches. I know they give me a smile every time. Either that or its a masochist.
You're not the first to lay claim that TheEnd is a troll, but it turns out the same people discovered they were just giving him too much credit. TheEnd, how is your LPG investment going? You were suppose to see some of that money by now
No sane person wants to see the economy crumble, people lose their jobs, businesses, houses, and possibly families. Unfortunately it looks like that is the way things are going to happen, it's now just a matter of when, not if. Personally, I hope it doesn't affect Australia too much, but I'm not sure that will be the case. Our economy is much weaker this time round, we haven't had a recession in a long time, and the housing bubble is ripe for a popping. The only thing we have going for us is that we have higher interest rates than other countries. I expect RBA rates to be lowered even more over the next five years. Possibly negative at some point.
We're a small debtor nation that relies on foreign capital to function. If we had negative interest rates, there would be no compensation for the risk foreign capital takes for investing in Australia. It would simply create a currency crisis in Australia. We're not Europe, Japan or even Sweden.
It's still possible for Australia to have negative rates and have higher interest rates than other countries. It would of course mean other nations were negative too.
Sovereign bond crisis which will push capital out of government bonds and into major economies such as US, German and UK corporate debt, real estate, blue chip stocks and commodities. Same thing happened in the 1930s during the depression
