I don't know why you are making a big deal out of this (unless it is
just part of your anti-US propaganda), everyone has been talking about
the economy for at least a year. "Now the bad news pops up
everywhere"? I've been reading it everywhere for at least a year.
On Sat, 1 Mar 2008 20:06:43 -0800 (PST), indiaBPOking
<indiabpoking@[EMAIL PROTECTED]
> wrote:
>http://www.intelligencer.ca/ArticleDisplay.aspx?e=918803
>
>And you thought that I had a gloomy outlook on the economy. Now the
>bad news pops up everywhere.
>
>Harry Koza in the Globe and Mail quotes Bernard Connelly, the global
>strategist at Banque AIG in London, who claims that the likelihood of
>a Great Depression is growing by the day.
>
>Martin Wolf, celebrated columnist of the U.K.-based Financial Times,
>cites Dr. Nouriel Roubini of the New York University's Stern School of
>Business, who, in 12 steps, outlines how the losses of the American
>financial system will grow to more than $1 trillion - that's one
>million times $1 million. That amount is equal to all the assets of
>all American banks.
>
>Every day now, thousands of people all over the U.S. and Great Britain
>are walking away from their homes - simply mailing their house keys to
>the banks - as housing bailout plans fail.
>
>With unemployment growing, the next phase will hit commercial real
>estate making the financial institutions the unwilling owners not only
>of quickly depreciating houses, but also of empty strip malls and even
>larger shopping centres.
>
>The next domino to fall will be credit card defaults, and after
>that... who knows? There are so many exotic funds out there, with
>trillions of dollars in paper - or rather computer-screen money - all
>carrying assorted acronyms, and all about to disintegrate into
>nothingness. Over the next couple of years, scores of banks that have
>thrived on these devices, based on quickly disappearing equities, will
>fail.
>
>The most frightening forecast so far comes from the Global Europe
>Anticipation Bulletin (GEAB), available for 200 euros - about $300 -
>for 16 issues annually. Its prediction is quite specific.
>
>Where my warnings never spelled out an exact date, this think tank has
>it pegged precisely. Here are its very words:
>
>"The end of the third quarter of 2008 (thus late September, a mere
>seven months from now) will be marked by a new tipping point in the
>unfolding of the global systemic crisis.
>
>"At that time indeed, the ***ulated impact of the various sequences of
>the crisis will reach its maximum strength and affect decisively the
>very heart of the systems concerned, on the front line of which (is)
>the United States, epicentre of the current crisis.
>
>"In the United States, this new tipping point will translate into -
>get this - a collapse of the real economy, (the) final socio-economic
>stage of the serial bursting of the housing and financial bubbles and
>of the pursuance of the U.S. dollar fall. The collapse of U.S. real
>economy means the virtual freeze of the American economic machinery:
>private and public bankruptcies in large numbers, companies and public
>services closing down."
>
>The re****t goes on to say that we are entering a period for which
>there is no historic precedent. Any comparisons with previous
>situations in our modern economy are invalid.
>
>We are not experiencing a "remake" of the 1929 crisis nor a repetition
>of the 1970s oil crises or 1987 stock market crisis.
>
>What we will have, instead, is truly a global momentous threat - a
>true turning point affecting the entire planet and questioning the
>very foundations of the international system upon which the world was
>organized in the last decades.
>
>The re****t emphasizes that it is, first and foremost, in the United
>States where this historic happening is taking an unprecedented shape
>(the authors call it "Very Great U.S. Depression").
>
>It continues to predict that, although this crucial event is global,
>it will be the beginning of an economic 'decoupling' between the U.S.
>and the rest of the world. However, non 'decoupled' economies will be
>dragged down the U.S. negative spiral.
>
>Concerning stock markets, the GEAB anticipates that international
>stocks would plummet by 40 to 80 per cent depending where in the world
>they are located, all affected in the course of the year 2008 by the
>collapse of the real economy in the U.S. by the end of summer.
>
>The European authors of this re****t - it appears simultaneously in
>French, German and English - state that they simply and without
>prejudice try to describe in advance the consequences of the ominous
>trends at play in this 21st-century world, and to share these with
>their readers, so that they can take the proper means to protect
>themselves from the most negative effects.
>
>So there you have it. Three re****ts from three different sources, all
>well regarded, and all pointing to a disastrous fall-out from our
>monetary moves.
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