Wednesday, 17 December 2008

US is in the eye of the storm. More financial shocks to come.

This piece from 60 Minutes shows that things are far from rosy in the United States.

If a $700 billion bailout is required to deal with the problems so far then how much is needed to cope with the next wave of financial shocks?



Will Obama be able to navigate the correct course in order to get the economy back on its feet in the shortest possible time?

It seems unlikely given the Keynesian instincts of the economic team he has appointed.

That said, I think that a McCain presidency would have also taken the wrong decisions.

(Nothing Follows)

4 comments:

Kaboom said...

It is not going to be pretty.

This is a process that was starting in mid-2001, and if not for 11th September, would have been done and dusted. A normal economic cycle was underway, getting rid of the excesses of the failed dot.bomb era of the March 2000 top.

I am positive that 9/11 was timed to assist with the economic problems then, in order to destroy the Great Satan.

Instead, the Great Satan has destroyed itself, by spending itself into utter oblivion. A recession is a necessary and good cleansing regimen for an economy that goes batshit crazy and mis-allocates valuable capital to really, really stupid things. Pets.com, anyone?

I provide one of my rare prophecies, so that you can laugh at me when it fails. The prophecy involves a date, and a value, so it will be easy to check:

The price of an ounce of gold will have exceeded $1,700 USD by the end of February, 2009.

If my prophecy fails, I will never again comment upon matters economic on Jack's Blog.

Jack Lacton said...

Kaboom,

I reckon gold will top US$2000 so I'm as bearish as you are though I'm not too sure about February 2009 being the timing. Maybe a few months down the track.

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