Martin Weiss, http://www.moneyandmarkets.com/, on 30 July 2009, said the full impact of deflationary depression is postponed due to the stimulus plan, but he insist his call on deflationary depression did not change an iota. It may be delay to the next fall or early 2010, the second tsunami.
Have we forgotten the size of the bubble!
- consumption bubble - USD9.8 trillion
- mortgate bubble - USD20 trillion
- derivatives bubble - USD200 trillion (credit default swap USD60 trillion, MGS, CDO, CLO etc)
- bailout bubble - USD24.7 trillion
- social and medicare commitment bubble - USD58 trillion
The only different between US and Japan is, the size of bailout is bigger, the gearing is bigger, and the derivatives is definitely a lot bigger and the consumption bubble is also bigger.
MyView
US and EU is doomed, doubt there is a way out other than bite the bullet. The bailouts and stimulus manage to win back the confidence or buy time, so to speak, but, the fundametal did not change i.e. bubble problems is not solved, the second tsunami will be back with a vengence. It would be far bigger than the first one.
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