USA debt is about USD10 trillion, GDP about USD13.5trillion, Derivatives of about USD350 trillion (US portion only), mortgate market about USD20 trillion, USA debt + commitment for social welfare & medicare in 20 years from no is about USD60 trillion. Consumption is USD9.5trillion or about 70% and mainly driven by debt. The myth of housing prices will continue to rise and make profits from it ended. 65% Americans are invested in the equities & bonds.
MyView
- Stimulus package - is like dropping an iceberg into the Pacific Ocean, the water will not be any much colder in the long run. The problem is bigger than expected.
- The Stimulus package or spending plan is unlikely to work, because, spending and debt is the problems, one cannot solve a gambling habit by giving the gambler more capital to gamble.
- The continuous interventions by the government will prevent efficient distribution of capital and resources, it only prolong the matter.
Europe
Effected by the mortgage and derivatives problems as well. Damage is as huge as USA. East Europe has a debt of around USD4.9 trillion. It is collapsing one by one. Latvia, Ukraine, Greece, Poland etc. The west is similarly the same, which finance 75% of East Europe. The derivatives for Europe is expected at least USD200 trillion.
Russia
Ruble is history. The stocks market is history.
Asia
Over production for the Europe and USA consumptions. Japan 4th quarter GDP shrunked about 13%. Singapore shrunked about 17%.
Latin America
Never contribute much to the world economy other than Brazil. Brazil also badly impacted as it concentrated on commodities, which is badly hit this round.
MyView
BELIEVE, HOPE & CHANGE we can, is all political talks, no substance in them. US has about say 8,000 stocks, only about 4 or 5 stocks goes up, and 7,995 down, probability tell us to short, you have 90% chances of profiting.
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