Sunday, Feb 15, 2009
Twilight of the Gods
Telegraph: Failure to save East Europe will lead to worldwide meltdown
Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400bn this year, equal to a third of the region's GDP. Good luck. The credit window has slammed shut.
Posted by gardeniadotnet @ 12:18 AM (1046 views) Add Comment
16 Comments
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1. paul said...
So should I move all my money to a safer country's currency - Japanese Yen?
2. goweresque said...
I knew big wave was going to hit eventually. Now I know what. And it won't be long now......
3. plato said...
Fancy lending like that to regions whose whole economies run on black and dirty money..... Surprised?
4. Eternal Sceptic said...
Armegeddon and the four horses in your garden sometime soon. We live in interestinng times.
5. Peterwarsaw said...
Polish goverment is totaly ignorant and oblivious to the crisis. Half of the home owners are in negative equity and to make matters worse PLN has fallen to CHF from 2.10 to 3.10 thats 50% over last 6 months. Anybody who took out CHF mortgage last year of say 100K now must repay 150K, add to that 20% fall in house prices and the loses are spiralling out of control. In meantime unemployment has risen in Jan by 160K , thats 10.5% of workforce. The Premier and the President are squabling who looks best on TV.
6. P. Riddy@hotmail. Com said...
Didn't take long for EU membership to be a burden. Its like the son, drawing debts on promised inheritance that never came. How will E Europeans respond to more false promises after the total failure of Communism?
7. Baudot said...
Stupid foreign governments. I'll wager they've trashed their banking systems, borrowed to the hilt, cashed in their gold reserves, and squandered away money taken from their own pension funds. Oh boy, oh boy, are they in trouble.
8. greytornado said...
If Paul wants to move his money - there is only one kind of money to go into and that's gold. Anything involving paper will probably turn to rats. There still seems to be a little time left.
9. Greytornado said...
Oh - don't buy ETF's by the way - another accident about to unfold. Buy real gold and bury it in your garden or similar.
10. Greytornado said...
If Paul wants to move his money - there is only one kind of money to go into and that's gold. Anything involving paper will probably turn to rats. There still seems to be a little time left.
11. mountain goat said...
European banks are amongst the most highly leveraged.
12. mountain goat said...
Sourace of the above Fortune Magazine
13. paul said...
@Greytornado
Gold has not been the hedge it is made out to be. If it plummets significantly (and will if deflation takes a hold), it will be almost as bad a bet as property.
14. P. Riddy@hotmail. Com said...
Gold is great during deflation, because the usual interest bearing benefits of paper reverse. Silver can do badly during deflation because its an industrial metal.
15. This comment has been removed as it was found to be in breach of our Blog Policies.
16. mountain goat said...
I suppose we are all guessing what will happen in deflation, although we are arguably in deflation now. Gold is doing very well, silver too since the commodity bubble values got blown off in October (other non-precious metal commodites like copper are still near their lows). Without government meddling cash would be the sure thing to hold. Since gov are meddling and seem set to do more rather than less I think we will see less confidence in currencies and move more to a barter economy (as is happening to a growing extent in international food trade already) and also a greater role for gold and silver as money.