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WTF?_2

kennyboy66 wrote: »

How can they all suffer the same fate.

:rotfl:There are more currencies in the world than the pound, the dollar and the Euro.

It's just a crapshoot as to what order the above mentioned ones end up in after tumbling. The real power is moving East.

PasturesNew

I get paid in $, I noticed yesterday the exchange rate was 1.70, so I now get 15% extra. On the downside, the turnover of that income stream dropped by 30%. And today I lose a £ client worth 25% of turnover. So earnings from next week are down by 50%.

Woe is me... more wine gums needed.

neverdespairgirl

!!!!!!? wrote: »

At first, it's irrational to take your money out. But as the run gathers pace it becomes perfectly rational to get your cash out. Even Mervyn King admitted as much:

Like Generali's comnent - don't panic, but if you are going to panic, do it first.

abaxas

amcluesent wrote: »

has signalled that the usual socialist approach of letting inflation rip to erode public sector debt obligations is now in play.

Where is this 'inflation' going to come from? By the time it's trickled through to wages people will have already defaulted.

So we get deflation is assets and inflation in day to day commodities (food/oil etc).

That would be a right f*cker.

baileysbattlebus

!!!!!!? wrote: »

This is just blind panic and as more and more people capitulate, the market is being dragged down to crazy lows.

At some point, the 'big boys' will feel it's the right time to pile in and you'll see an almighty 'bounce'.

The problem is of course predicting the timing of all this. Irrational behaviour can't be predicted. And given the fact that the banking system is so screwed there is a chance, small but perceptible, of a complete financial collapse a la Argentina. So in time the selling could in fact become rational.

Think of a bank run started by a rumour. At first, it's irrational to take your money out. But as the run gathers pace it becomes perfectly rational to get your cash out. Even Mervyn King admitted as much:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2817746.ece



Right now - are we seeing the queue of people to take their money out of the stock market?

Interestingly, earlier this week I watched an tv investment show host on tv (one of the American news channels), called Jim Cramer, who advised that: if you needed cash during the next 5 years and your money was in the stock exchange, get it out now.

Perhaps we are seeing queues of people taking their money out of the stock market

http://www.redlandsdailyfacts.com/ci_10668362

WTF?_2

abaxas wrote: »

Where is this 'inflation' going to come from? By the time it's trickled through to wages people will have already defaulted.

So we get deflation is assets and inflation in day to day commodities (food/oil etc).

That would be a right f*cker.

There's going to be strong upward pressure on CPI if the pound doesn't recover.

On the plus side, food and energy price increases should slacken off, which I'd take over cheaper iPods any day of the week. I wouldn't expect much in the way of actual meaningful drops in the price of living though. A lot of the $146bbl oil hadn't fed through to the system anyway before it started to fall back.


The way I see it is that there will be a lot less money around in the economy in general because people won't have access to large amounts of credit like they used to. Also, unemployment will take a lot of spending power away. At the same time with weak sterling, imported goods will cost more. In real terms, food and fuel might cost a bit less but they'll still account for a large chunk of what disposable income people have.

Stagflation, basically.

House prices should tumble. It's clear that there wasn't a housing shortage or anything like that - just a shortage of 'investment properties' to meet the demand fuelled by cheap, lax credit. Take away that credit and much of the market demand to buy a property goes away.

Combine that with a massive oversupply of 'luxury executive apartments' (cheap and nasty shoebox city centre flats, in other words) and it doesn't look too good for property.