I'm talking about the most powerful(?) country trying to revive the financial market that went into complete freeze last week. It's terrifying when the "patient" doesn't respond to any drug administered...
They have to act fast, any days if not minutes are crucial. Any wrong decision will have a lasting impact.
Finland can only watch and hope that they will do the right thing. "Thing" is the appropriate word as nobody knows, what it is. How to cure a patient that should have been treated a decade ago, but was let unchecked due to "stimulus" that pushed its system to the extreme.
2009 will be a terrible year no doubt. To be franc, I knew for long that 2009 would be a difficult year, but not to this degree... I was thinking that we would get something in between the 1990 and 2001 recession. Noticeably not as bad as the 90's but far worse than 2001. Today it seems that we are in an uncharted territory. Nobody knows how bad it will be and how long it will last...
"Mr Katainen added that he did not see the Finnish domestic market stalling provided consumers carried on spending."
They were excesses, no country has not had excesses. During those excesses you start to get erratic behaviours - ecological deterioration , destruction of vital resources, corruption rising, violence getting extreme. "We got it"... Somehow the economic woes, we are experiencing are somehow part of readjusting unsustainable growth amid increased greed and a massive wealth gap difference.
"The banks are largely responsible for the mess we're in, they have to be responsible for getting us out of it", Bini Smaghi, European Central Bank executive board member, told a group of businessmen in Washington today.
On top of that, you have banks, ran by ex-crooks, that need to deleverage. They need money. Nobody want to lend to them. So the only alternative for those banks to get the money is from the most liquid place: the Stock Market...
"The Finnish branch of Icelandic bank Kaupþing has asked the Finnish government to borrow it some cash to help pay back depositors, Mari Kiviniemi (centre), the Finnish minister in charge of financial supervision, said Friday."
4 comments:
The answer is no. We are doomed. We should spend all our saving as if there is no torrmow. Then the economy might recover ???
Sarkozy asked help from all European prime ministers and result was that they copied model from GB. We are pretty close global disaster if regulators are so weak on Banking sector that they get together with prime minsters to announce some irrelavant things.
"Oct. 13 (Bloomberg) -- Microsoft Corp. co-founder Bill Gates said the U.S. economy is headed for a ``fairly significant recession,'' and that the unemployment rate may peak at more than 9 percent."
I suppose the "recession" train has left th station...
-Anton
Guys hold on your horses. It's not because the stock market gain 16% After losing 20% that we are out of the wood.
I agree as many commentators predicted, the financial crisis has ended...since banks are now nationalized or backed by government almost unlimited guaranty. They can lend again.
Next is the economical slowdown, that will come to picture in the month to come.
Personnaly, i had said that in few months (18?) it will be good to invest in the stock market. Obviously after, having seen, the stock market pluging in a straight line, losing more than 30%...one had to invest, so did I. It was just crazy, I bought as much as I could last Friday...
I'm just planning to stay in the market for a short period i.e 2 weeks or until december, depending how things unfold. The bear market is still intact and most probably we will revisit the low sometime in 2009.
If one thing you have to learn is that when fear is very high, then you should invest when euphoria is back then you should cash in your postion.
Same apply for the housing market. Euphoria was in late 2006-2007...
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