Unfortunately this is the attitude of the masses across the pond. Denial isn't just a river in Egypt. I guess they don't realize that almost every country is practically on the brink, especially those with massive unsecured loans to Eastern Europe. Countries like Sweden, Switzerland and the U.K. have huge chunks of their GDP in loans to Eastern Europe, Austria alone has 70% of their GDP in loans there. What happens when they default? It's coming. The housing boom in countries like Italy and Ireland makes the U.S. boom look like a teeny tiny blip. The underpinnings that are collapsing in that area are coming home to roost, and in a huge way.
In my opinion the G-20 is like the United Nations but with checkbooks, equally inept and irrelevant. George Soros, whether you agree with him or not, said the other day that if things don't work out at G-20 we will fall into a Depression. Think he's short?
Lot's of opinions for sure on this topic, the market will be the final arbiter.
Wednesday, April 1, 2009
G-20
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About Me
- upsidetrader
- I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.
4 comments:
Love your blog upsidetrader. Gotta say as a Londoner, I feel the perception in the UK that this is a US driven problem is because our politicians have tried very hard to promote that opinion. Every Prime Minister's questions - even today - it is reiterated as a "Global Problem" and that the UK's finances are better than every other major state.
I don't believe this for a minute of course, however you can see why it is favorable to suggest that the US is the culprit.
Also, many like me believe the UK housing boom is still largely overinflated. Additionally, our lenders are still irresponsible - recently RBS disclosed it was still offering 100% mortgages.
For UK specific financial opinions, I recommend the BBC's Robert Peston,
http://www.bbc.co.uk/blogs/thereporters/robertpeston/
Just like the guy that smokes, gets cancer, and blames it on the tobacco companies, these countries that are blaming the US for their problems need to remember that it was themselves that were buying that bad debt that put them where they are. Look to your leaders. Viva Iceland. Remember the good ole days in Ireland.
ABANDON fISH
THANKS-WHAT ARE UR THOUGHTS ON TODAYS G20 AFTER GLOW?
ELDITTO
Denmark is scary
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