I think it is peculiary to see the Man's work falling. It is something you see often, but what we are seeing now is an event of - hopefully - once in a lifetime. It really is scary.
Lehman has filed for Chapter 11, Merrill is now BofA properties. AIG is expected to fall. If that happens all the CDS (credit default swap) which are insuring all the bad-loan based securities which are in the hand of the Fed and of the remaining banks, will be not only worthless, also the banks still holding the poisonous CDOs will get hit severely. And the casualties will increase dramatically. The only solution available to the regulators is to print more money. That will eventually hamper the dollar strength and hit even more dramatically the €/$ exchange rate. That might be helpful for a while: US exports will benefit from such a movement. But if, as it is happening now, the dollar is weakining against the YEN, also all the Japanese manufacturer in the US will suffer, as they will see the absolute value in YEN of dollar earned decrease.
Italy is safe. Banks suffered little, if any, financial damage deriving from subprime write-offs.
As a friend pointed out to me, this crisis might end US supremacy. And some might even rejoice of this. (I don't; I regard the United States of America as my own home.)
If one has read the Esopus fairy-tale about the "wooden-stick king" knows that, in a way, is never a good idea to complain about the status quo when you don't know what is gonna come if you change it. Maybe somebody would prefer to have India or China as the ruling country of the world. I don't.
God Bless Americans, and everybody who lost his job these days and may He grant them safety and peace to all of us.
Will we go back to the Real Economy? Will it be the turning point of our civilization? God knows.
Let's hope.
Lehman has filed for Chapter 11, Merrill is now BofA properties. AIG is expected to fall. If that happens all the CDS (credit default swap) which are insuring all the bad-loan based securities which are in the hand of the Fed and of the remaining banks, will be not only worthless, also the banks still holding the poisonous CDOs will get hit severely. And the casualties will increase dramatically. The only solution available to the regulators is to print more money. That will eventually hamper the dollar strength and hit even more dramatically the €/$ exchange rate. That might be helpful for a while: US exports will benefit from such a movement. But if, as it is happening now, the dollar is weakining against the YEN, also all the Japanese manufacturer in the US will suffer, as they will see the absolute value in YEN of dollar earned decrease.
Italy is safe. Banks suffered little, if any, financial damage deriving from subprime write-offs.
As a friend pointed out to me, this crisis might end US supremacy. And some might even rejoice of this. (I don't; I regard the United States of America as my own home.)
If one has read the Esopus fairy-tale about the "wooden-stick king" knows that, in a way, is never a good idea to complain about the status quo when you don't know what is gonna come if you change it. Maybe somebody would prefer to have India or China as the ruling country of the world. I don't.
God Bless Americans, and everybody who lost his job these days and may He grant them safety and peace to all of us.
Will we go back to the Real Economy? Will it be the turning point of our civilization? God knows.
Let's hope.
1 commento:
this crisis might end US supremacy? Yes this one or the next one... or next decade... This doesn't scares me...history flows... I think that the next ruling country of the world will be Europe (but it has to grow and gae more compact)...China and India has not enoght cultural strengh..That's what I think...
Will we go back to the Real Economy? No. Because all the guys all over the world wants to be brokers, managers, lawyer...nobody wants to sell peaches or fix woodentables..
Accio
Posta un commento