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And therein lies the problem. It would help for the future but hurt at the present. Whats happening at the minute is akin to putting a plaster on a leper.
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Mr B,
Can I really be giving Chisel to hard a time? He consistently makes outrageous comments, attempts to flavour his arguments with macro economics of which he has very little grasp and then backtracks and squirms when these failings are pointed out, while simultaneously and hypocritically commenting on other threads that when wrong he is the first to admit his errors. With regard to Oil then I think there is a interesting discussion to be had as to the cause and effect of oil prices on the financial crisis but this is not what Chisel was suggesting, he stated that it was oil reaching $140 that had pushed fed rates up to 5.25% which is factually incorrect as rates had already fallen by the time that price was reached. I completely agree with you on the problems of cheap credit but what can we do now? We (the UK) collectively need to realise some economic pain but preferably not all at once, we've got a decade if not more of belt tightening and first we have to actually stop running up more debt whether that be public or private, we're in a huge mess. |
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The point is that cheap credit is what runds the global economy. It does not make it right!. But that is teh point. You can not all of a sudded decide it is wrong and be done with it.
It will take years to create a market /global economy that is not reliant on cheap credit. Mr B , it is not my opinion that Cheao Credit is right. I am just saying that it is here, and it is likely to stay here for teh forseeable future |
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more rumours , but there's speculation that france and italy could be downgraded. could me a big mess before the week is out.
a correction for chisel - it is not just cheap credit but constantly expanding levels of cheap credit |
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Mr B
That is the point my friend. I really do not disagree with you . What I am suggesting though is that the UK, US, Euro governments and Central bankers will NOT pull the rug out from underneath any economy. That is why I think it dangerous to base investment decisions on rumours and hearsay. I really believe the latest drop in stock markets is a prelude to a sustained rally! I note that the Aussies kept rates on hold, and there seems to be a little bit of concern about growth, jobs etc . What is teh feeling in Aus at the moment. Is there growing unrest that the interets rate hikes and taxes on antural resources are starting to adversely affect the growth potential of Asutralia? Do teh Australian Public believe that interst rates at 4.25% are too high? |
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chisel
situation in aust has changed quite a bit in 2010.We now have a fake prime minister who basically promises the world but delivers little.Also the govt is on an out of cotrol spending binge, most of which is totally wasted.The most recent example is a school tuck shop re built for 600,000$ which is no bigger than a single garage.Read ripp off/gravy train. The resources tax at 40% has knocked confidence here as the penny is starting to drop that all this reckless spending is to be financed with tax and charges hikes.Also everyone knows that aust is riding off the resouces industry and igf that reverses we are cactus.So people are worried that the govt is a total dud.Cost of living goes up and up with eletricity rising 60% over the last 4 years.Less discretionary $$$ to go around so each interest rate hike hurts more than it would say 4 yrs ago. Further rate hikes are I think reasonably unlikely for a while, at least until after the election. You know I think that the reality is that democratic govt worldwide is out of control with its spending in order to vote buy.Sooner or later those chickens just have to come home to roost. |
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10,000 broken
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see you Monday when they realise the news is actually better than expected!! More scare mongering and panic fro absolutely no reason. Things are moving in the right direction!
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who do we owe money to ?
and can't we just bump them and pay them nothing ? |
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we owe other countries .. who owe other countries ......
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In humour, truth.
http://www.youtube.com/watch?v=5D0VhS8qXT0 |