Wazua
»
Investor
»
Economy
»
Investors Lounge
Rank: Chief Joined: 8/4/2010 Posts: 8,977
|
murchr wrote:hisah wrote:webish wrote:Perfect place to go for holiday right now. Four months ago I was there, things were 'dirty' cheap and I couldn't resist to 'overshop'. Tourism at the major Greek Islands also very affordable. I agree with this comment from that article; QUOTE: " I feel bad for the ordinary Greeks, but can someone explain why, in today's economy, deflation (falling prices) is a bad thing? Shouldn't that be a good thing?" Deflation is bad if your economy is 70% powered by consumerism. Deflation shrinks credit supply. This shrinks purchasing power (austerity by gubberment, consumer spending cuts, bankruptcy, jobs destroyed etc). The economy tanks since the blood (credit) is no longer sufficient to power it up. Since most economies these days have taken to consumerism esp in euroland and US, deflation is a nightmare for the central banks and treasury heads in gubberment. Thus the endless QE to stimulate and defeat by all means necessary that ugly deflation monster.
Well this QE thing has introduced other cancers which are going to worsen the deflation nightmare in future, but that is another topic.
Does this mean goods are sold at a loss? Surely the cost of production cannot be the same as that of 1960 That's how deflation works. Take a loss for a while and hope for the best (recovery). $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
hisah wrote:murchr wrote:hisah wrote:webish wrote:Perfect place to go for holiday right now. Four months ago I was there, things were 'dirty' cheap and I couldn't resist to 'overshop'. Tourism at the major Greek Islands also very affordable. I agree with this comment from that article; QUOTE: " I feel bad for the ordinary Greeks, but can someone explain why, in today's economy, deflation (falling prices) is a bad thing? Shouldn't that be a good thing?" Deflation is bad if your economy is 70% powered by consumerism. Deflation shrinks credit supply. This shrinks purchasing power (austerity by gubberment, consumer spending cuts, bankruptcy, jobs destroyed etc). The economy tanks since the blood (credit) is no longer sufficient to power it up. Since most economies these days have taken to consumerism esp in euroland and US, deflation is a nightmare for the central banks and treasury heads in gubberment. Thus the endless QE to stimulate and defeat by all means necessary that ugly deflation monster.
Well this QE thing has introduced other cancers which are going to worsen the deflation nightmare in future, but that is another topic.
Does this mean goods are sold at a loss? Surely the cost of production cannot be the same as that of 1960 That's how deflation works. Take a loss for a while and hope for the best (recovery). Wao! No one want to be like the greeks at this moment. Terrible. I'd rather close shop "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
|
|
|
Rank: Veteran Joined: 9/4/2009 Posts: 700 Location: Nairobi
|
Confessions of a Quantitative Easer Read more: http://www.zerohedge.com...nly-say-im-sorry-america“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
|
|
|
Rank: Chief Joined: 8/4/2010 Posts: 8,977
|
Quote:I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.
Markets hate confessions...
Today's POMO is $6B. Volatility is about to make a come back in global markets...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
|
|
|
Rank: Veteran Joined: 7/22/2011 Posts: 1,325
|
Money is about to be made!! So Bruce Berkowitz has offered to buy FNMA & FMCC outright, in response to the government trying to shut them down. This is good news to a small investor coz it means the two ( or several) big giants will fight over these cash cows, while we just sit and watch the stocks grow! And on top of that Bill Ackman has revealed he owns 10% of the two stocks. Oh my gosh, this is about to get real interesting, if the activist fights the government with the zeal he usually has, and Berkowitz's reputation makes other fund managers buy the stocks, lemme stop thinking, coz these stocks are about to heat up! http://www.forbes.com/si...buyout/?partner=yahootix
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
France's Big brother speed trap - If only Kidero and the govt would take a cue http://www.businessweek....ons-in-speeding-tickets
Another interesting read about Abenomics http://www.businessweek....-widen-japans-income-gap"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
Switzerland’s Proposal to Pay People for Being Alive.Quote: Every month, every Swiss person would receive a check from the government, no matter how rich or poor, how hardworking or lazy, how old or young. Poverty would disappear. Economists, needless to say, are sharply divided on what would reappear in its place — and whether such a basic-income scheme might have some appeal for other, less socialist countries too. Will we ever get there? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
|
|
|
Rank: Member Joined: 11/13/2006 Posts: 551 Location: Nairobi
|
China is growing increasingly militaristic and is setting off tensions in the East China Sea. The Yen is curiously resonating to the dispute. Read more: http://www.scribd.com/do...-East-China-Sea-Dispute
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
Do they use Yen or Yuan? The opposite of courage is not cowardice, it's conformity.
|
|
|
Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
|
@Jerry by Yen,he meant Japan which feels threatened by China's increasing military might. The East China sea separates the 2 nations as well as the Koreans. @SufficientlyP
|
|
|
Wazua
»
Investor
»
Economy
»
Investors Lounge
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|