In late January I already posted a short pessimistic note about the huge decrease of the stock market. At this time, the trend was already very unpredictable but the concrete state of the CAC index in Paris got me think that recession was somewhere around. But this index was at 4800. Yesterday afternoon's level was 3800. How to loose more than 20% of your investments ? Buy stocks and wait for 9 months ! Crash !It (just) took 25 years (and a world war) to retrieve the stock level of 1929 before the crash !
In addition to these huge losses in stock markets, now people are afraid of loosing their savings at banks. Which bank can we really trust after the last 10 days ? This crisis that started in USA has now intensively contaminated Europe, and confidence of people in the system is at the lowest level ever reached I think. My forecasts, which are guesses, are not good: the financial system will continue purging until all rotten roots (unfortunately not brains) are removed. And this will be painfull.
Thank you "subprimes" !
Every generation has its crash ! (link)
Now, the next level will affect the employment rate and the industrial capacities of our western countries. The globalization started the work and I predict that this financial crisis is the second step of the deindustrialization here. Unless the currency value decreases much more than expected (€uro has started an important one, $ is coming) with all this money invested by governments to turn us on to "Low cost countries". Without clear success today !
After energy power, real estate market, stocks, savings, what is next ?
Basically, it is time to "move" (I guess some will use "change"). There are surely reasons to keep on hoping on a better world in the coming years, but as this speech is so fragile now, it is maybe better time to shut up. But re-act with keeping one's cool: "buy when buyable and sell when sellable" would one say. At least try, but not too hard !
A worrying absence of vision...
Let's see, pray Confucius and discover our new coming world...
Ciao
MfS
Thank you "subprimes" !
Every generation has its crash ! (link)
Now, the next level will affect the employment rate and the industrial capacities of our western countries. The globalization started the work and I predict that this financial crisis is the second step of the deindustrialization here. Unless the currency value decreases much more than expected (€uro has started an important one, $ is coming) with all this money invested by governments to turn us on to "Low cost countries". Without clear success today !
After energy power, real estate market, stocks, savings, what is next ?
Basically, it is time to "move" (I guess some will use "change"). There are surely reasons to keep on hoping on a better world in the coming years, but as this speech is so fragile now, it is maybe better time to shut up. But re-act with keeping one's cool: "buy when buyable and sell when sellable" would one say. At least try, but not too hard !
A worrying absence of vision...
Let's see, pray Confucius and discover our new coming world...
Ciao
MfS
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