Global Property Bubble
It is amazing how long the US (and World) economy has been in Bubbletopia.
Back in the late 90's when the US dotcom bubble was at its height, a recession seemed inevitable. I don't think any observer, astute or otherwise, expected to be where we are now at the beginning of the 2005/06 financial year.
We should have had a solid recession and right now be in a bear market. Instead we are in a "conundrum". The US Federal Reserves' monetisation of the dotcom recession has both delayed and amplified the effect of the inevitable downturn.
I called this blog the Great Recession because I believe Depression will be the last word that government's will use to describe the coming economic implosion. The ramifications will most likely extend beyond 2010.
Since this blog commenced, sentiment has begun to shift, with bearish commentary moving from the "outsiders" like Stephen Roach, Peter Schiff, and Jim Puplava to mainstream commentators. The linked article: http://rismedia.com/index.php/article/articleview/10818/1/1/ is an example of this continuing and progressive shift in sentiment.
Certainly get your own personal expert financial advice on how to protect yourself. My own views are to:
Back in the late 90's when the US dotcom bubble was at its height, a recession seemed inevitable. I don't think any observer, astute or otherwise, expected to be where we are now at the beginning of the 2005/06 financial year.
We should have had a solid recession and right now be in a bear market. Instead we are in a "conundrum". The US Federal Reserves' monetisation of the dotcom recession has both delayed and amplified the effect of the inevitable downturn.
I called this blog the Great Recession because I believe Depression will be the last word that government's will use to describe the coming economic implosion. The ramifications will most likely extend beyond 2010.
Since this blog commenced, sentiment has begun to shift, with bearish commentary moving from the "outsiders" like Stephen Roach, Peter Schiff, and Jim Puplava to mainstream commentators. The linked article: http://rismedia.com/index.php/article/articleview/10818/1/1/ is an example of this continuing and progressive shift in sentiment.
Certainly get your own personal expert financial advice on how to protect yourself. My own views are to:
- stay out of leverage property,
- minimise debt,
- cash out equity including superannuation,
- and consider gold to protect against currency devaluation.
posted by Peter at 11:44 am
2 Comments:
A very effective succinct article that gets right to the heart of the matter.
The author's view about the impact on China is one I share. The outcome of a world economic re-alignment is unpredictable but could have a destabilisaing effect on China.
http://www.brookesnews.com/050407greenspancad.html
ANOTHER RECESSION
Well I agree with almost everything in this article apart from the title. This isn't going to be "another" recession, this is going to be "the" recession.
http://www.americanchronicle.com/articles/viewArticle.asp?articleID=1094
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