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Global financial system implosion begins

Kaka Tim said:
When does this offcially become a second great depression then?

Or do we all need to start wearing flat caps and listening to George Formby first?
Click to expand...

I don't know. It was kind of interesting how quickly the media started using the term depression a few years ago, and then just as quickly stopped using the term. I don't know what will happen this time around.
 
I see that Roubini is now asking whether capitalism is doomed:
Nouriel Roubini said:
... we need to return to the right balance between markets and provision of public goods. That means moving away from both the Anglo-Saxon model of laissez-faire and voodoo economics and the continental European model of deficit-driven welfare states. Both are broken.
Click to expand...

He says we need more fiscal stimulus and investment in human capital & safety nets. He doesn't explain how we sustain such a system though.
:confused:

It's obvious that we need to abandon an economic system based on converting finite resources into garbage for a start...
 
Dr Jon said:
Who Killed Economic Growth? (ABCs of Dow Jones Implosion)

http://www.growthbusters.org
Click to expand...

Yeah, Growth is bad, so here's a new organization called Growthbusters to spread the word about how Growth is bad, hopefully it will get large enough to make sure everyone knows (maybe consider volunteering some of your time, in addition to your other commitments of course, or maybe Growthbusters will get big enough to employ you full time) and it's made a new film too which hopefully everyone will watch and add to their collections of other really good and informative films... so give generously, obviously not from the money you use already to feed and house yerself, give surplus money instead, to help growthbusters bust growth.

:facepalm:
 
I just noticed this Spiegel interview with Paul Woolley, head of the LSE's center for Capital Market Dysfunctionality, in which he claims that "the market isn't reaching equilibrium - it's falling into chaos." I was wondering about this and Roubini's earlier comments.
Onset of chaos? Hmmm - probably looks something like this...
LogisticMap_BifurcationDiagram.png
Woolley compares financial markets to cancer:
SPIEGEL: You've compared the finance markets to a cancer. What do you mean by that?
Woolley: The finance sector can -- and is -- growing until it overwhelms the economy. In good years the US finance industry cashes in on more than 40 percent of all corporate profits. In bad years they are saved by the taxpayers. The agents are doing a devilishly good job of developing innovative, complicated new products that people can't understand. It gives them the opportunity to earn excess returns and attract the best talent. While they are acting rationally, the result is a catastrophe.
Click to expand...


Also see:
Growth is not sustainable

ETA
Edited to shrink image but still appears massive when saved - grrr!
:mad: :confused:
 
Prof. Michael Greenberger explains how the financial markets became infected by money juggling parasites:

​
 
Aye, was just reading Boss' bonuses boosted by 187% since 2002.

I am also not surprised by much of the stuff leaking out about Alistair Darlings book about greedy, incompetent bankers and Gordon Brown's mismanagement of the economic crisis - which Brown's deregulatory reforms helped to create.
:rolleyes:
 
The swift Swiss move to control the value of their currency seems to have caused some shock, with some analysts thinking that this is the start of full-on currency wars.
 
Those graphs are a nice summary of what a heck of a lot of people have long realised has been happening.
 
wouldn't be surprising if the graphs were very similar for over here though, especially post '79...
 
Divisive Cotton said:
wow check this graph out, ever feel you've been had?
Click to expand...

Fantastic data visualisation. For a compelling narrative that explains this, see http://charleshughsmith.blogspot.co...d&utm_campaign=Feed:+google/RzFQ+(oftwominds)

> If we put all these pieces together, we have a clearer understanding of the long-term historical forces at work: the global consumer society funded by credit is in its end-game, and is the "Central State as guarantor of private consumption" model in which governments borrow/print vast sums of fiat currency to distribute to their citizenry to prop up consumption.
 
Interesting graphs above - I'd like to know the differentiator between 'hourly wage'and 'hourly comp' and equally who it refers to
I also have a problem with the idea of increasing productivity - 80% in the US of all places
I suspect this is a combi of US domestic data - ref pay and debt - and the productivity of their major corporations who moved production overseas
If US productivity had been so vital over that time Detroit would not be as it now is
As for the other link to some rating agency twat doing some Oprah style mea culpa - well not impressed really
Its a good idea to look at the base data rather than swallowing someone elses conclusions whole
 
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