Last Chance

[MrBurns]

If this does not restore confidence, nothing will: everything but the kitchen sink has been thrown at the crisis - and here, the kitchen sink is now also being lobbed, in the form of accelerated government spending on the economy itself.

I agree with this from -

http://www.businessday.com.au/business/a-bold-move-from-rudd-20081014-50f7.html

If this doesnt work it's all over rover. There's nothing else to give, this is the end of the road.

 

[Stan 101]

There will be another commodity cycle in time. During the next cycle, the pain people feel now will be a distant memory and the fever will overcome the masses again; cab drivers will begin to give advice again and we will come full circle.

To say that if the current rounds of world initiatives doesn't work, all is lost is absurd. There has been a long term support around the 4000 all ords mark and that line held. In time we may look back and be know this was the the bottom of the market and the start of a turn around. Hindsight is a terrific tool for this sort of commentry.
Common sense was going to kick in eventually and the opportunities for quality underpriced business would pull traders back into the fray.

Panic and "the world's economic end is nigh" catch cries does nothing but instill more irrational thinking. I'd like your views, if you may, Mr Burns on why this is the end of the road. It would be nice to know your interpretation of what or where the end of the road is.

I'm looking toward the next upward cycle and trading my plan with hopefully a better understanding of both the share and real estate markets.


Cheers,

 

[Kauri]

50 year treasuries anyone???

Cheers
...........Kauri

 

[MrBurns]

There will be another commodity cycle in time. During the next cycle, the pain people feel now will be a distant memory and the fever will overcome the masses again; cab drivers will begin to give advice again and we will come full circle.

To say that if the current rounds of world initiatives doesn't work, all is lost is absurd. There has been a long term support around the 4000 all ords mark and that line held. In time we may look back and be know this was the the bottom of the market and the start of a turn around. Hindsight is a terrific tool for this sort of commentry.
Common sense was going to kick in eventually and the opportunities for quality underpriced business would pull traders back into the fray.

Panic and "the world's economic end is nigh" catch cries does nothing but instill more irrational thinking. I'd like your views, if you may, Mr Burns on why this is the end of the road. It would be nice to know your interpretation of what or where the end of the road is.

I'm looking toward the next upward cycle and trading my plan with hopefully a better understanding of both the share and real estate markets.


Cheers,

The end of the road for NOW what did you think I meant ?

You cant solve a debt problem with more debt.

Handing money to pensioners wont solve anything and trying to "kickstart" an already bloated property market is sheer valdalism, it's going to crash anyway and now it will take more unsuspecting first home buyers with it.

I'm sure Rudd enjoyed his "address to the Nation" he is such a drama Queen but these measures wont work and only exacerbate the problem by depleting taxpayers dollars.

Nice to see you looking forward to the next property boom Stan 101 , I hope you're under 20 because it will be a long time coming.

Panic ????? when the market was booming were the people who particiapated in that called reckless ??? it looks like they were now and they were the ones thinking irrationally.

This is logic not panic, but there will be plenty of panic when all the wankers out there finally realise they weren't financial geniuses after all.

 

[Ageo]

The end of the road for NOW

You cant solve a debt problem with more debt.

I think the answers the whole problem, and as we site here the whole world is doing the exact opposite (i.e flooding the market with massive amounts of money it cant afford, so it has to be printed...... in turn more debt into the country's economy")

The question im interested in is: how long will this bubble grow? before it melts the whole system? i mean this sudden influx of paper will hold the markets to a certain point but then?

 

[MrBurns]

I think the answers the whole problem, and as we site here the whole world is doing the exact opposite (i.e flooding the market with massive amounts of money it cant afford, so it has to be printed...... in turn more debt into the country's economy")

The question im interested in is: how long will this bubble grow? before it melts the whole system? i mean this sudden influx of paper will hold the markets to a certain point but then?

I dont think it will be very long at all, perhaps weeks perhaps 6 months tops.

 

[treefrog]

The end of the road for NOW what did you think I meant ?

You cant solve a debt problem with more debt.

Handing money to pensioners wont solve anything and trying to "kickstart" an already bloated property market is sheer valdalism, it's going to crash anyway and now it will take more unsuspecting first home buyers with it.

here in the hill we are generally regarded as fairly backward but sometimes (through no fault of our own) we are ahead of the pack.
a few months ago we were second on some property whizz's best housing investment locations because of rental returns - buy a "house" for $120k and get $240/wk rent return yarda yarda, then:
oh crap! zinc and lead prices still falling so PEM dumps 60% of the workforce.
talking to my next door neighbour a couple of days ago (one of the 60% without a job) bemoaning he will have to sell his house (paid 160k) as a consequence (no job likely, partner and 4yo girl) - bought in 12 months ago because of the first home starter $$$ - needs to get what he paid then (property booming time) but can afford to drop the $7k govvy gift - didn't have the heart to add to his woes and say property down 40% so far.
so why are we ahead? we lead Oz in the lost jobs = housing specials areana.
::
I guess quite a few who shouldn't, bought houses because of the free money.
hey, don't the yanks have a huge financial problem - something to do with making houses affordable to the punters by lowering interest rates, but then offering Ozzies more free money to take on debt wouldn't do that, would it?
Nar, not unless you lost your job, but hey, we could simply employ more public servants to boost employment - i wonder if Kev has that one up his sleeve for next month.

 

[Indie]

I think the answers the whole problem, and as we site here the whole world is doing the exact opposite (i.e flooding the market with massive amounts of money it cant afford, so it has to be printed...... in turn more debt into the country's economy")

The question im interested in is: how long will this bubble grow? before it melts the whole system? i mean this sudden influx of paper will hold the markets to a certain point but then?

This is the bubble collapsing not growing.

Central bank printing is tiny compared to the implosion of debt. Besides, they can print all they want but the banking system is broken so the dollars won't reach the economy. There is a mad rush for dollars right now and there aren't enough around. Banks and big corporations will use tax payer money to re-capitalise, sit tight, watch their smaller competitors go under and buy them up for cents in the dollar. That's the name of the game. This is how the elite rob the masses through the inflation/ deflation cycle.

Central banks can replace the real money that is lost in the market but they can't replace the leverage, and the leverage is many, many multiples higher than the real money supply.