A new world order is upon us. A seismic shift. An inside out process that is redefining the brokerage intermediary.There are two ways we can react to this--run from it or embrace it. It's happening either way and the onus is on us to adapt.
The greatest opportunities are bred from the biggest obstacles. The world will look vastly different when we pass through this period but that's the way the world works. From pain will come pleasure, not for all but most certainly for some.
If you look back at the Great Depression, a multitude of multi-billion dollar corporations found their footing.- eg . Disney, Fannie Mae, HP etc..
I'm not a bandwagon guy and I'm won't pile on to the doom and gloom at these levels. Our foresight was well documented and there are no "victory laps" in this market.
And I won't presume that something "entirely more depressing than a recession" is a foregone conclusion, although social mood is seemingly shifting in that direction.
Remember, the stock market crash didn't cause the Great Depression--the Great Depression caused the stock market crash. I offer this as a reminder rather than a prediction and with the best interest of ye faithful in mind.
Lets all see what is happening and prepare for it in kind.
When we discuss societal acrimony, we often say that if you're not part of the solution, you're part of the problem.
When it comes to the future face of finance, the same dynamic will again prove true.
May the force be with you!
4 comments:
Hey pirate,
Have been following your blog for some time and i have to say your are absolutely correct about the economy now.
"the stock market crash didn't cause the Great Depression--the Great Depression caused the stock market crash" I like this quote!
Here's my thought:money can't fix anything! The problem that US face now is more than stock market crash.It's more of the fundamental of the economy itself. an economy of a nation can't be saved by just printing money and pump it in the system. It is much more complicated than that.
Yesterday was 18 september 2008, exactly one year anniversary of the first rate cut(50 basis point) by federal reserve and look what happen, at least 5 companies about to bankrupt! and economy is sinking to hell!!!
Some may say if fed didn't intervene it would be worse, well, if fed didn't intervene in the first place, the us economy would be much better. They created the dot com bubble and it burst in 2001. Then to "stimulus" the economy fed(led by Greenspan) encourage US people to spend money and cut the interest rate all the way til 1.00% and created the housing and credit card bubble(about to burst). Now the housing bubble is bursting and fed inject even more money! They repeated the mistake they done in 2001 by creating more and bigger economy bubble. The last thing you wanna do when you in a hole is dig deeper and that's exactly what the fed is doing.
This is what gonna happen to US if they keep doing the same thing:Their inflation rate will shoot up as the money supply increased heavily.(yesterday gold price up 80 dollar per ounce is the prove), their dollar will depreciate and their debt will be so huge they won't be there to control the world economy(US change from the world biggest creditor in the '70s to the world biggest debtor now) and by that time, the economy of the world will collapse just like what happen to the great depression 1929.
Well just give some of the investor a taste of what gonna happen. You can ignore me but that is gonna happen. Like the MasterCard ad we use to watch on TV: there are really something money can't buy and that's sound economy that the US and rest of the world really need!
So some might ask how? how to save the economy now? First fed should stop acting like this. Let the economy recover itself. The economy have to take the painful medicine to cure and heal itself. Let all the bubble created by the fed and people of America burst and start all over again. It is the only way like it or not.
Here's a video interview by don harrold with peter schiff. They both predicted the stock market correctly so here's their thought
http://www.youtube.com/watch?v=wNxrGWlZptw
Hi PoB,
With the recent fallout in US financial markets, do you think that we are somewhat nearing the bottom?
"Big Guy in Laos" Friend
Hi PoB,
With the recent fallout in US financial markets, do you think that we are somewhat nearing the bottom?
"Big Guy in Laos" Friend
How r u, "Big Guy in Laos"?
As for "the bottom" u have asked - the answr is "no". We've not seen any evidence of an "ending-pattern" developing.. The tide always receeds b4 the tsunami arrives!
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