Le site Bellaciao: coloré, multiple, ou le meilleur cotoie fort heureusement le pire, mélangé, bizarre, picabien et dadaîste, explorant toutes sortes de registres et de régimes rhétoriques, drole et polémiqueur, surréaliste: rencontre d'un parapluie et d'une machine à coudre sur une table de dissection, têtes de Lénine sur le clavier d'un piano Steinway ou Bosendorfer...
FR
ES
Senal en Vivo
VIDEO
RADIO
FRIENDS SITES
with Bellaciao
Bellaciao hosted by
To rebel is right, to disobey is a duty, to act is necessary !
Bellaciao  mobile version   |   Home  |   About us   |   Donation  |   Links  |   Contact  |   Search
Time To Bunker Down - Global Panic Spreads

by : Solve et Coagula
Sunday November 2, 2008 - 21:26
1 comment

Joe Average
November 2008

The largest debt bubble in the history of mankind is on the verge of deflating and collapsing as world leaders and central bankers fly around the globe to one crisis meeting after another. No sooner is one panic quelled or some hasty band-aid fix slapped into place to stop a financial collapse, then another breaks out somewhere else. The bad news just keeps on coming;

ICELAND...Bankrupt...Oct.2008 nationalises banks; turns to International Monetary Fund for help.
BALTIC DRY INDEX...Down 90%... a leading indicator of shipping rates & global trade.
JAPAN (NIKKEI)...Down 81%... from all time high of 38,957 on December 29th 1989.
RUSSIA (RTS & MICEX)...Down 77%... exchanges shut down several days to stem panic.
CHINA (SSE)...Down 72%... from all time high of 6,029 0n October 16th 2007.
KOREA (KSE)...Down 68%... from high in May 2007.
ARGENTINA (MERVAL)...Down 64%... moves to take over $30 billion in private pension funds.
INDIA (BSE)...Down 60%... since January 2008.
TURKEY (ISE)...Down 59%... from high in November 2007.
HONG KONG (HANG SENG)...Down 55%... past 12 months.
ITALY...Down 53%... past 12 months.
BRAZIL (BOVESPA)...Down 52%... from May 2008 peak. Trading suspended 5 times in 3 weeks.
FRANCE (CAC)...Down 50%... from June 2007.
GERMANY (DAX)...Down 50%... year to date.
GREAT BRITAIN (FTSE)...Down 47%...from all time high of 6,930; now “officially” in recession.
MEXICO (IPC)...Down 47%...since June this year.
AUSTRALIA (ASX)...Down 45%... from all time high of 6,829 on November 1st 2007.
U.S.A (DJIA)... Down 46%... to 8154 on Oct.10th 2008 from 14,198 on Oct.11th 2007. Interesting that the American market (where this crisis all began) is down less than so many others...but not surprising really with the U.S. Fed prepared to monetise as much debt as necessary to avert a Financial Armageddon.
OIL...Down 54%... after peaking at $139 in June 2008. OPEC Nations hastily cut supply.
COPPER...Down 50% from July 2008 high.
NICKEL...Down 62% year to date.
GOLD...Down 26% +... from high of $1,010 on March 17th 2008.

The statistics speak for themselves. The world is undoubtedly experiencing what Alan “I made a mistake” Greenspan described as a “once in a century event”... thanks for that Mr. Greenspan.

The only question now is how long might it last?

Most observers have now resigned themselves to the realisation that we are most unlikely to have a “V” shaped recovery (i.e. a short, sharp recession lasting only six months or so). Many believe the extent of damage that has been inflicted on world markets ensures that we will have to endure at least a “U shaped recovery” that will not see an end to hard times for at least two years (i.e. a recovery sometime in 2010). Some arch-bears (like NYU Professor Nouriel Roubini) are warning that what may be coming our way is an “L shaped recovery” meaning we will flat-line along the bottom in a recession/depression for many years to come before we emerge out the other end.

A Dash to Cash...and Unintended Consequences

Following the lead of other world banks, the Australian Government acted quickly to guarantee the savings deposited in its banks (even though the top four Australian banks are included in the top safest 20 banks world-wide with a AA+ rating).

Rather than ensuring calm among nervous investors it triggered a mad scramble for the safety of government-guaranteed deposits that resulted in a deluge of withdrawal requests from investors outside this safety umbrella. The unintended consequence of this was that mortgage trusts and other non-bank funds were swamped with withdrawal requests and were forced to freeze all withdrawals.

So this nation of just under 22 million found itself with more than 250,000 Australians with their funds frozen in accounts valued at $25 billion.

Many of these investors are retirees. One distressed elderly gent, in tears, was featured on the T.V. news complaining that he didn’t even have enough cash at hand to take his wife out to lunch at the local seniors club. Another retiree described how he couldn’t sleep nights and kept waking at three in the morning worrying about how he and his wife would manage in the future.

The only consolation and advice forthcoming from Australia’s Treasurer was for them to head down to their local welfare office to find out if they might be eligible for a government handout until this problem was sorted out... not exactly what they had planned for and counted on in their retirement!

Similar concerns have been raised by Martin Weiss Ph.D. of Weiss Research Inc who goes so far as to suggest that massive, erratic flows of “Hot Money” from deposits around the globe may result in some kind of international bank holiday having to be declared. Meanwhile, Prof. Roubini predicts hundreds of hedge funds will go bust and that many more stock markets will be forced to shut...perhaps for up to a week. Also, Charles Wendel (Financial Institutions Consulting) fears that of the 8,000 plus banks in America’s fragmented banking system...up to 1,000 will disappear within two years.

The message seems to be... have some cash on hand...ideally enough to cover your living expenses for a couple of months or three if possible.

Australians certainly seem to be doing so according to Alexander Symonds (Australian Financial Review October 29th 2008)... “ CASH IS BACK UNDER BEDS...There’s a run on $100 notes but the Reserve Bank of Australia’s message is...don’t panic. Armaguard had advised small businesses it was short of $100 bills and expected to be for some time...wealthy people (are blamed for) walking into bank branches and withdrawing all their cash ‘to the point where we now have a $100 note shortage in Australia”.

Killed by Debt

As the world economies stumble from one crisis to another, it is sobering to hear how horribly the global debt bubble is destroying the lives of some poor, naive, unsophisticated individuals in emerging countries. The credit implosion in India, where the masses were recently introduced to freely-handed-out-money and a new-found consumerism, has resulted in a recent tragedy that is sickening.

Indian police were this month called to a suburban apartment where they discovered four bodies. The father (70 years of age) and his wife (60 years old) had committed suicide by swallowing poison. Nearby, their middle aged daughter and son had hanged themselves. 73 credit cards were found in the apartment as well as evidence of the overwhelming debts they had gotten themselves into. Not understanding how the interest charges would compound, the family had dug themselves so deep into a hole that in the end shame and despair led them to kill themselves. No walking away from their obligations and declaring bankruptcy for them.

Greed is NOT Good!

“We’ve seen the triumph of greed over integrity... The triumph of speculation over value creation... The triumph of the short term over long-term sustainable growth. It is perhaps time now to admit that we did not learn the full lessons of the greed-is-good ideology. And today we are still cleaning up the mess of the 21st-century children of Gordon Gekko.”

Kevin Rudd, Prime Minister Australia.

Adding another slant to the recent behaviour of “The Masters of the Universe” on Wall Street and their outrageous remuneration packages.

“I am old enough to have known both the CEO’s of 20 years ago and those today. I can assure you that we CEO’s of today are NOT 10 times better than those 20 years ago.”

William McDonough, Former New York Federal Reserve Governor.

Simple the New “Chic”

The times for conspicuous consumption, trying to overtake the Joneses, piling on more debt, leveraging up, and big risk taking are over.

Simple is the new “chic”. Frugal is good...greed and overindulgence is bad. Working to rebuild savings is good. Paying down credit card debt is good. Entering into new credit arrangements, especially for expensive discretionary items you don’t really need...is unwise.

Savings deposits should be with banks that are rated A+ and preferably have government guarantees. Real estate investments where mortgage repayments might prove crippling if tenants move out, interest rates rise or your income is reduced (Heaven forbid you lose your job) should be disposed of where possible. Down-size if necessary.

Baby Boomers should be prepared to help their kids out if they’re able (some kids might even have to move back in with the old folks to save rent). If Boomers have suffered serious losses to retirement nest eggs they may need to consider working longer before retiring, going back to work if already retired (at least part-time), and not get spooked into taking risky gambles to try and “get it all back”.

Being in denial won’t cut it. Nor will the old clichés about “it’s not a real loss if you don’t sell...it’s only a loss on paper...it’ll come back...it always does”, “I’m in for the long haul...I’ll dollar-cost-average-down”, etc. Good financial advice is essential...preferably from someone who has been through tough times before and can come up with a sound survival strategy.

Personal safety for you and your family may become more of an issue in the turbulent, uncertain times that lie ahead because unemployment looks certain to rise as will unruly behaviour.

The tough times will pass...but in the mean time it’s time to bunker down.

All the best, Joe.

www.lifetoday.com.au

Disclaimer: This newsletter is written for educational purposes only. It should not be construed as advice to buy, hold or sell any financial instrument whatsoever. The author is merely expressing his own personal opinion and will not assume any responsibility whatsoever for the actions of the reader. Always consult a licensed investment professional before making any investment decision.

http://www.gold-eagle.com/editorial...



Leave a comment
Print this article


Commentaires de l'article
 

Time To Bunker Down - Global Panic Spreads
Thursday November 20 - 02:08 - Posted by e2a14f709bd7576e...

Australians certainly seem to be doing so according to Alexander Symonds (Australian Financial Review October 29th 2008)... “ CASH IS BACK UNDER BEDS...There’s a run on $100 notes but the Reserve Bank of Australia’s message is...don’t panic. Armaguard had advised small businesses it was short of $100 bills and expected to be for some time...wealthy people (are blamed for) walking into bank branches and withdrawing all their cash ‘to the point where we now have a $100 note shortage in Australia”.

The money was never there. Its the old Sabbatean entourage method... Money as Debt in a fractional Reserve system, meaning a bank can have 1 billion on deposit accounts and only have 100 Million in actual physical reserves.

http://video.google.com/videoplay?d...

That is why there are bank holidays... to give time to print some more... banks can and do create money OUT OF NOTHING having as collateral the borrower promise to pay... money that circulates as not cashable checks or transfers, that the borrower deposits on his account... and those can be derivative contracts with other banks...







Public Apology to Women of the World from The American Republic (Hypatia of Alex
Monday 31 - 15:21
by Willam Morgan
YES, THERE WILL BE ELECTION FRAUD, AND ON A GRAND SCALE
Sunday 23 - 18:32
by JOHN CHUCKMAN
Hillary Clinton will be first female President 2017
Monday 10 - 17:21
by Willam Morgan
Police Shootings: Law, Policy, and Accountability
Thursday 6 - 14:22
by William John Cox
AMERICA DESERVES BETTER, BUT EVEN MORE IMPORTANTLY, THE WORLD DESERVES BETTER
Thursday 29 - 18:02
by JOHN CHUCKMAN
Back to School for Fascist Dupont-Aignan
Thursday 15 - 11:32
by Nouveau Comité de Vigilance des Intellectuels Antifascistes
The Presidency: Character Matters
Friday 9 - 15:06
by William John Cox
WHY HILLARY IS THE PERFECT PERSON TO SECURE OBAMA’S LEGACY
Tuesday 30 - 18:08
by JOHN CHUCKMAN
Remake of Ben Hur in 2020 planned by new motion picture studio
Friday 26 - 15:50
by Wallace
THE CASE FOR DONALD TRUMP
Monday 22 - 19:32
by JOHN CHUCKMAN
THE CONSTITUTION OF THE UNITED STATES IS DEAD
Thursday 11 - 06:42
by David R. Hoffman, Legal Editor of Pravda.Ru
DONALD TRUMP AND THE GENIUS OF IDIOCY
Friday 5 - 00:47
by David R. Hoffman, Legal Editor of Pravda.Ru
FOOLING MOST OF THE PEOPLE MOST OF THE TIME IS WHAT AMERICAN POLITICS ARE ABOUT,
Friday 29 - 18:13
by JOHN CHUCKMAN
A message of your fellow striking workers from France
Tuesday 12 - 20:49
by Info’Com-CGT
The Right to Vote, Effectively
Friday 8 - 22:20
by William John Cox
Fourth of July Lies
Sunday 3 - 19:41
by June C. Terpstra
Who Should Make Political Policy, the People or the Politicians?
Friday 24 - 15:14
by William John Cox
Hollow Women of the Hegemon Part II: Atrocity Enabling Harpies
Tuesday 21 - 18:49
by Dr. June Terpstra
The American Republic Manifestum book is being made into a Movie
Saturday 11 - 15:54
by William Morgan
Write-in Voting and Political Protest
Wednesday 1 - 15:05
by William John Cox
Yves Bouvier art battle plays out in online and social media arena
Tuesday 31 - 21:12
by Dean Bagley
Damaged Candidate Clinton Can’t Call Out Trump
Friday 27 - 13:53
by Daniel Patrick Welch
PLEDGE OF THE NEW REPUBLICAN PARTY
Tuesday 24 - 21:53
by David R. Hoffman, Legal Editor of Pravda.Ru
LET TEXAS SECEDE
Thursday 19 - 00:53
by David R. Hoffman, Legal Editor of Pravda.Ru
LAS TRES ERRES A LA ENÉSIMA POTENCIA.-
Monday 16 - 15:35
by FREDDY SUBDIAGA
DEMAGOGIA POPULISTA...
Monday 16 - 15:26
by FREDDY SUBDIAGA
Oligarchs Won’t Let You Vote Their Wars Away
Wednesday 11 - 20:24
by Daniel Patrick Welch
AN AMERICAN ORIGINAL: JOHN KERRY - FROM HIS REMARKABLE RECENT COMMENCEMENT ADDR
Monday 9 - 20:40
by JOHN CHUCKMAN
Donald Trump and Hillary Clinton support the American Republic Manifestum
Monday 9 - 16:37
by William Morgan
Transformation: A Student-Led Mass Political Movement
Monday 25 - 19:28
by William John Cox
Algerian Feminists react to ’Hijab Day’ in Paris 2016
Monday 25 - 01:13
THE ILLUSION OF RIGHTS
Friday 22 - 18:45
by JOHN CHUCKMAN
US is real superpredator pretending to be victim
Monday 18 - 22:23
by Daniel Patrick Welch
Gaiacomm International has accidently created a fusion reaction/ignition.
Sunday 17 - 17:01
by William Morgan
Clinton’s Campaign Continues to Highlight Horrible Hillary
Saturday 9 - 00:57
by Daniel Patrick Welch
Armoiries racistes à Harvard : Plaidoyer pour la réflexion socio-historique
Thursday 7 - 18:56
by Samuel Beaudoin Guzzo
THANK YOU MISSISSIPPI FOR YOUR HATE
Wednesday 6 - 02:02
by David R. Hoffman, Legal Editor of Pravda.Ru
The PKK in Iraq: “We are ready to fight ISIS everywhere in the world”
Monday 4 - 14:33
by InfoAut
Clinton Crashes and Burns, Sanders Will Win (But hold off on the applause)
Friday 1 - 22:33
by Daniel Patrick Welch
Confirming Supreme Court Justices and Electing Presidents
Friday 1 - 20:59
by William John Cox

home | webmaster



Follow-up of the site's activity
RSS Bellaciao En


rss FR / rss IT / rss ES



Bellaciao hosted by DRI

Organize, agitate, educate, must be our war cry. Susan B. Anthony
Facebook Twitter Google+
DAZIBAO
I, European citizen, won’t let refugees be rejected in my name
Thursday 10 March
©Olivier Jobard/Myop I, European citizen, won’t let refugees be rejected in my name THE RIGHT TO ASYLUM IS A RIGHT In the phrase « right to asylum », every word matters. Under the law, every person who is persecuted because of his or her political opinions or because of his or her identity, every person that is endangered by violence, war or misery has a RIGHT to seek asylum in another country The aim of this petition is to collect (...)
read more...
Neo-Nazis and far-right protesters in Ukraine 3 live-stream
Friday 24 January
2 comments
The far-right in Ukraine are acting as the vanguard of a protest movement that is being reported as pro-democracy. The situation on the ground is not as simple as pro-EU and trade versus pro-Putin and Russian hegemony in the region. When US Senator John McCain dined with Ukraine’s opposition leaders in December, he shared a table and later a stage with the leader of the extreme far-right Svoboda party Oleh Tyahnybok. This is Oleh Tyahnybok, he has claimed a "Moscow-Jewish mafia" (...)
read more...
Hugo Chavez is dead (video live)
Wednesday 6 March
by : Collective BELLACIAO
1 comment
President Hugo Chavez companeros venezueliano died after a long battle with cancer.
read more...
International initiative to stop the war in Syria Yes to democracy, no to foreign intervention!
Thursday 13 December
Your support here: http://www.peaceinsyria.org/support.php We, the undersigned, who are part of an international civil society increasingly worried about the awful bloodshed of the Syrian people, are supporting a political initiative based on the results of a fact-finding mission which some of our colleagues undertook to Beirut and Damascus in September 2012. This initiative consists in calling for a delegation of highranking personalities and public figures to go to Syria in order to (...)
read more...
THE KU KLUX KLAN ONCE AGAIN CONTROLS INDIANA
Monday 12 November
by : David R. Hoffman, Legal Editor of Pravda.Ru
7 comments
At first glance, the results of America’s 2012 election appear to be a triumph for social, racial, and economic justice and progress in the United States: California voters passed a proposition requiring the rich to shoulder their fair share of the tax burden; Two states, Colorado and Washington, legalized the recreational use of marijuana, while Massachusetts approved the use of marijuana for medical purposes; Washington and two other states, Maine and Maryland, legalized same-sex (...)
read more...
I’VE DECIDED TO "WASTE" MY VOTE
Sunday 28 October
by : David R. Hoffman, Legal Editor of Pravda.Ru
In a 2004 episode of Comedy Central’s animated series South Park, an election was held to determine whether the new mascot for the town’s elementary school would be a “giant douche” or a “turd sandwich.” Confronted with these two equally unpalatable choices, one child, Stan Marsh, refused to vote at all, which resulted in his ostracization and subsequent banishment from the town. Although this satirical vulgarity was intended as a commentary on the two (...)
read more...
HIGHER EDUCATION IN AMERICA: DREAM OR NIGHTMARE? PART IV
Friday 28 September
by : David R. Hoffman, Legal Editor of Pravda.Ru
PART I PART II PART III If there is one major inconsistency in life, it is that young people who know little more than family, friends and school are suddenly, at the age of eighteen, supposed to decide what they want to do for the rest of their lives. Unfortunately, because of their limited life experiences, the illusions they have about certain occupations do not always comport to the realities. I discovered this the first time I went to college. About a year into my studies, I (...)
read more...
HIGHER EDUCATION IN AMERICA: DREAM OR NIGHTMARE? PART III
Friday 28 September
by : David R. Hoffman, Legal Editor of Pravda.Ru
PART I PART II PART IV Disillusioned with the machinations of so-called “traditional” colleges, I became an adjunct instructor at several “for-profit” colleges. Thanks largely to the power and pervasiveness of the Internet, “for-profit” colleges (hereinafter for-profits) have become a growing phenomenon in America. They have also been the subject of much political debate and the focus of a Frontline special entitled College Inc. Unlike traditional (...)
read more...
HIGHER EDUCATION IN AMERICA: DREAM OR NIGHTMARE? PART II
Friday 28 September
by : David R. Hoffman, Legal Editor of Pravda.Ru
PART I PART III PART IV Several years ago, a young lady came into the college where I was teaching to inquire about a full-time instructor’s position in the sociology department. She was advised that only adjunct positions were available. Her response was, “No thanks. Once an adjunct, always an adjunct.” Her words still echo in my mind. Even as colleges and universities raise their tuition costs, they are relying more and more on adjunct instructors. Adjuncts are (...)
read more...
HIGHER EDUCATION IN AMERICA: DREAM OR NIGHTMARE? PART I
Friday 28 September
by : David R. Hoffman, Legal Editor of Pravda.Ru
PART II PART III PART IV When The Bill of Rights was added to the United States Constitution over two hundred years ago, Americans were blessed with many rights considered to be “fundamental.” One conspicuously missing, however, was the right to an education. This was not surprising given the tenor of the times. America was primarily an agrarian culture, and education, especially higher education, was viewed as a privilege reserved for the children of the rich and (...)
read more...
ONE SOLITARY LIFE, PART TWO
Monday 30 July
by : David R. Hoffman, Legal Editor of Pravda.Ru
3 comments
If there is one universal question that haunts all human beings at some point in their lives, it is, “Why do we die?” Death, after all, is the great illogic. It ultimately claims all, the rich and the poor, the mighty and the small, the good and the evil. Death also has the capability to make most human pursuits—such as the quest for wealth, fame and power—vacuous and fleeting. Given this reality, I have often wondered why so many people are still willing to (...)
read more...
HOW MUCH CORRUPTION CAN DEMOCRACY ENDURE?
Thursday 28 June
by : David R. Hoffman, Legal Editor of Pravda.Ru
6 comments
How much corruption can a “democracy” endure before it ceases to be a democracy? If five venal, mendacious, duplicitous, amoral, biased and (dare I say it) satanic Supreme Court “justices”—John Roberts, Samuel Alito, Antonin Scalia, Clarence Thomas and Anthony Kennedy—have their way, America will soon find out. In several previous articles for Pravda.Ru, I have consistently warned how the Supreme Court’s 2010 Citizens United decision is one of the (...)
read more...
DEMOCRACY IN THE HANDS OF IDIOTS, PART TWO
Tuesday 12 June
by : David R. Hoffman, Legal Editor of Pravda.Ru
1 comment
Imagine, if you will, that the United States government passes a law banning advertisers from sponsoring commercials on Rush Limbaugh’s radio show or Rupert Murdoch’s Fox (Faux) “News” Network. On one hand, there would be two decided advantages to this ban: The National IQ would undoubtedly increase several percentage points, and manipulative pseudo-journalists would no longer be able to appeal to the basest instincts in human nature for ratings and profit while (...)
read more...
DEMOCRACY IN THE HANDS OF IDIOTS
Thursday 7 June
by : David R. Hoffman, Pravda.Ru Legal Editor
4 comments
LIVE, from the State that brought you Senator Joseph McCarthy, Wisconsin voters now proudly present, fresh from his recall election victory, Governor Scott Walker! At first glance, it is almost unfathomable that anyone with a modicum of intelligence would have voted to retain Scott Walker as Wisconsin’s governor. This, after all, is a man who openly declared he is trying to destroy the rights of workers through a “divide and conquer” strategy; who received 61% of the (...)
read more...
PEOPLE WITHOUT SOULS
Tuesday 13 March
by : David R. Hoffman, Legal Editor of Pravda.Ru
2 comments
A question I’ve frequently been asked since I began writing for Pravda.Ru in 2003 is, “Why did you become disillusioned with the practice of law?” This question is understandable, particularly since, in most people’s minds, being an attorney is synonymous with wealth and political power. I’ve always been reluctant to answer this question for fear it will discourage conscientious and ethical people from pursuing careers in the legal profession—a (...)
read more...