Tuesday, July 15, 2014

Deja Vu

Daily Telegraph

"The world economy is just as vulnerable to a financial crisis as it was in 2007, with the added danger that debt ratios are now far higher and emerging markets have been drawn into the fire as well, the Bank for International Settlements has warned." Does anyone disagree that more debt has been created in the world economy in the last 6 years and it was risky debt that created the crisis in the first place that led to to the great recession? If in agreement, then predicting the future really boils down into two camps: Camp 1, That feel that the solution to fight debt with debt is working and that's the new model for the future and it can go in indefinately. Camp 2. That believe that the easy money, bubble stoking has merely created an even bigger problem for the future.

Posted by britishblue @ 08:57 AM (4179 views)
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2 thoughts on “Deja Vu

  • i remember the 90`s says:

    i am in the second camp .!!!!!!

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  • britishblue says:

    Funnily enough so am I. I just saw a guy to day who sold the council house he bought for 38k for 400k. He is moving in with a girlfriend. He has paid of his debts and the first thing he is going to do is spend 40k on a car, the second thing he is going to do is to book a holiday, the third thing he is going to do is to buy a complete new wardrobe. Amazing what a housing bubble can do for GDP when a rotten 1930’s council house that would be bulldozed in some parts of the world unlocks a spending spree. Car sales wouldn’t be up this year by any chance would they?

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