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sean5
Suspended User
Registered: Nov 2005
Location: United States
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you can take your economist theories and 10000 excel calcualtors (that all happen to be wrong) and shove them right up your ass. then in a few years when you get done shitting them out you will be able to wipe with benjamin franklin's chubby face because that will be the only use for that piece of clothe you call the dollar. nothing but a tool for the jews to maintain control over the world.
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Apr-12-2009 04:56
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atbell
Supreme tranceaddict

Registered: May 2007
Location: Toronto, Canada
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I've got myself to the point that I can throw down some more predictions and kind of go over what I'd expected to happen since about December.
First off, the polar bear dip that I expected didn't play out as I'd though. I expected a sharper + shorter drop late around the start of Feb. Instead there was a rather constant drop from about mid-December to early March. This isn't too surprising seeing as there have been holidays around the world for almost two months straight.
I'm also surprised at the relative strength of the US dollar. I'd expected it to at least slowly loose some value over the past four months or so.
What I think is going on right now, the source of the market optimisim in the face of a steady stream of bad news, is that things apear to have picked up because there is more economic activity than when large parts of the world were on holidays. The fact that business is getting back on line after takeing some time off is being mistaken as a recovery or at least a bottom.
I don't think it is.
For the most part I stick by my past prediction that another drop is on the horrizon. I am pushing back the time though. I think it might hit in late August or early September, with a posibility that it could happen later.
On the negative side there are lots of housing problems still to be sorted out. The banks don't seem to have finished cleaning the bad loans off the books and I don't think the bad loans have finished apearing. This spring / summer I expect to see more deliquencies pushed in to forclosure along with forclosures that had been held off until now finally getting resolved. As a bit of a lame, one example type thing, a co-worker of mine owns a house in Pensilvania. He's over 5 months delinquent on his mortgage and the bank hasn't even officially forclosed yet. All they do is send him flyers that say 'having trouble with your payments? Call this number!' He doesn't want the house, the bank doesn't want the house, it continues to sit vacant. I suspect the banks are either backlogged or trying to hold off as long as possible so they can keep thier books looking good for longer.
Then you've got the mark-to-market accounting changes. These are nothing but smoke and mirrors surfrace changes. Now it's harder to tell how healthy a company is because the value of thier assests isn't know. This means that any company that is in trouble won't show signs until it miraculously files for chapter 11. I don't know the exact extent of this problem because I've yet to read the changes but I'm certain that it is a problem.
Retail side things look grim. GDP numbers have been held down, so the papers say, because inventories are being cleared. These are inventories that had built up pre-Nov and they are clearing at near deflationary prices. I think that a number of firms will end up in a position where, come summer, they want to re-stock inventories but they are already in debt, didn't make much profit off of thier last inventory clearing because of the depressed prices, and can't get loans to re-stock because of the credit crisis. A firm in this position finds it might just be easier and more profitable to close the doors then to try and figure out how to re-stock the inventory. Especially if infletion sets in and re-stocking will be more costly then it has been in the past.
So, late summer, a number of firms (how many? I don't know, that's my big question right now) close doors because they didn't make money off of clearing thier inventory before and inflation has made it more costly to do.
Less firms, with fewer goods = a decrease in supply of goods.
A decrease in the supply of goods = an increase in prices.
Massive government debts = increased supply of money printed
increased supply of money printed = decrease in the value of money (increase in prices)
Need to find another reserve currency = decrease in demand for US$
Decrease in demand for US$ = decrease in value of US$ (increase in prices)
Inflation seems imminent, how much things will inflate is questionable.
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Apr-13-2009 15:30
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