posted on May, 10 2010 @ 01:33 AM
The problem with all of this from our perspective(Canada) is that we have to borrow/print this money to give to Europe. We don't have Billions
sitting around. We used to have surpluses until the fiscally responsible Conservatives took power.
The US can't afford to have the US dollar go any higher as the cost to service your debt increases and whoa
you guys are raking up the debt like
Any further bailouts to any country is similar to throwing money into a fire. Totally pointless from now on except for short term gains but the long
run outlook for most of the EU and the US is not looking good.
So where and how much are the bailouts for Ireland, Spain, Portugal, Italy, France. Where is the UK going to go for bailouts when they need them in
the next few months.
For the UK if the electoral situation doesn't settle down the GBP is going to trend down since the UK is broke also and may have to finance a
squirmish in the Falklands.
Canada can't do it. China's bubble is about to burst so they're usual lending will shrink considerably and if China shrinks the rest of Asia will
So in my personal, non-professional opinion we'd be stupid as people in the world who are going to be shouldered with these massive gambles that
haven't worked previously. The previous stimulus packages were only bandaids on a slashed jugular.
The world economies need major surgery. These complex derivatives and the notion that it's ethically possible to sell a package to investors telling
them it's "GOLD" and then betting heavily against it behind their backs. These need to be eliminated. There so complex that people don't really
know what they're getting into.
To me the derivatives market is like a street hustler and the 3 card trick. Follow your card each time he moves them around and bet that at the end
you tracked it right. However, in the derivatives market each movement of a card generated a transaction fee for someone. It's shuffling paper and
charging money to do it, but in the end their not worth the paper they are printed on.
The world needs to go back to basics. Solid assets to back up your riskier ventures and not leverage yoursleves to the nines.