Going Down a Financial Black Hole: When Markets go Crazy
by gamblerman (Member) - published: September 29, 2008
Word Count: 247 Word Bytes: 1544 Viewed: 183 times
Category - Essays
© Copyright by gamblerman

0.00

(0 votes)

You must login to vote

Well, markets are tumbling and the Dow will probably fall another 2000 points. The 2002 low looks like the best support for a bottom on the technical charts. The financial cannibalism also continues on Wall St.

Wachovia bank was gobbled up by Citicorp. Wachovia almost ate up Goldman Sachs just a few weeks ago. The concentration of more wealth in fewer and fewer hands continues.

Congress revolted today because it has lost a lot of political power since Bush took office. First with limits on foreign policy and judicial oversight. Now with even more limits in the financial sphere.

Bush, McCain and Palin are now seen by many Americans as a joke. But Obama will have a hard time governing when he wins in November because he will inherit a nation in serious decline.

The US is saddled with huge amounts of debt and most of it is owned by foreigners. It was a nice party while it lasted. Americans are now going to wake up in a world where they are no longer number one.

It's nothing to cry about. Usually one single power has a hard time running the world. When there are multiple powers its hard to run things too, but it forces nations into international cooperation. It's an unstable system, but history shows these two options are the only ones in town.

We are in the middle of a historic shake-out.

See you on the other side of the historical black hole....

Related Items

The World Crisis for Dummies

LBJ to Obama

Game OVER in Afghanistan

Facebook Cyber B-party and TDM

TDM and the Distributive Web

The TDM Cyber Universe: Welcome to the Distributed Web

The Daily Minute Makes In roads....

TDM Goes Global....

TDM Twitter Site Operational

First Blog on TDM site

More by gamblerman »

Comments

The following comments are for "Going Down a Financial Black Hole: When Markets go Crazy"
by gamblerman

Financial Chaos
Yes. It was a nice party while it lasted.

But I am afraid there are going to be many chaotic reprecussions until things settle again ...

Our global financial system is seriously flawed ... fundamentally screwed up ... simply because it is built on rewarding speculation not hard work ...

Brokers, rather than producers or service providers, making the bucks .... this is good in a gambling casino for a weekend in vegas, but can not be the basis for a solid financial system to govern the lives of 6 billion people and many trillions of dollars ...

On capital gains, achieved by inflatting stocks rather dividends coming from actual operations ... on P/E ratios in the hundreds or throusands when they should be should be 5, 10, 20 or even 30.

That kind of correction requires major major change of mind ... I do not think that it is even going to happen this time ... but it is going to be painful as hell ...

( Posted by: waelnawara [Member] On: September 30, 2008 )

Well....

This happens in cycles. The empire starts running on acts of financial hocus pocus rather than real and self-generating invention and production. Spain, Holland, England got hit by this and now the US....

...the ponzi scheme has reached its mathematical limits and now everyone is fighting about who gets screwed the least. Many rich are falling, but the survivors of this rich spat will always come out on top....

I hope you have cash.

( Posted by: gamblerman [Member] On: September 30, 2008 )

can i blog this?
Michael,

with your permission, can i blog this?

weekite dot blogspot dot com

thanks

Wael

( Posted by: waelnawara [Member] On: September 30, 2008 )

YES
Go ahead....

M

( Posted by: gamblerman [Member] On: September 30, 2008 )

Uh....

All is digital illusion. Just like paper illusion in days gone by, but the effects on economies are REAL...

I see someday a totally automated society with only digital cash and no big bureaucracies....this transcends left/right arguments.

It's sci-fi right now....but it won't be for long. This current economic creative destruction will get us there.

Who will rule this new world is not clear.

Also the demographic bubble that has been building since the 1400's will pop in 30 years. China and India are the last to have a baby bust. Less people less green problems....

Russia, Europe, and Japan cannot even replace their populations....without immigration neither could the US.

M

( Posted by: gamblerman [Member] On: September 30, 2008 )

thanks!
Done ... see it on my blog

weekite dot blogspot dot com

:)

Thanks Michael ...

BTW, if you allow me, I can add your last name since I just posted it under your first name: Michael

( Posted by: waelnawara [Member] On: September 30, 2008 )

yeah
You can refer people to my blog here...at lit.org.

My website www.spiritualscifi.com

M

( Posted by: gamblerman [Member] On: September 30, 2008 )

Interesting ..Eric et al
What if ( and a very big if at that ) it had all turned out right viz. Bush and his gang of four had ( counter intuitively ) pulled off the Iraq obscenity . And everything was tickety-boo. Would most Americans have been ,as always , scrambling to get a piece of the pie .

In our Third World country ,its hard not to be cynical about Americans in general . Over the years they've proved to be superb fair weather friends.Time and again ,they've come and made hay while the going was good . And then yanked the carpet from under our feet the moment things got rough.

Yet ,incredibly enough, we folks keep going back , groveling for more of this treatment.

The most telling example of this. My country has been having an 8 % growth rate for the past 4 years or so. Yet ,over the past 8 months or so ,the appreciation in the Yankee Dullar has been nearly @ 40 % p.a. The main reason :the Hedge Funds etc. are pulling out their billions and scurrying back to their home turf . Faster than rats from a sinking ship.

Yes we do have our Gooroos and our Boodas. But they're hardly likely to be of very much help in such a situation.

Eric did make the point that : "everyone knows the money will come from "The Man (or Woman) in the street) at the end of the day.....'.

Not necessarily so . Given her awesome might ( and ruthlessness), America does have one option that none of the others has . The ability to raise a good part of this 700 plus billion from the Saudis and the other "Aye-rabs' . By simply leaning very hard on them . And getting them to come up with the wherewithal.

( Posted by: RJKT [Member] On: October 2, 2008 )

Nope...
The Americans have about 20 years left before all tricks are exhausted....but it's getting rougher and rougher....

( Posted by: gamblerman [Member] On: October 2, 2008 )

Tricks up their sleeves
One shudders to think of it. 20 years more of our continuing to be marionettes to our American puppet-masters. Never before have the years seem to stretch so interminably ahead ( certainly for us out here.)

Personally though ,i'd never make the mistake of underestimating Americans - particularly when it comes to perpetuating their hegemony .

Few can match their talent,nay genius, for pulling rabbits out of the hat .. and victory from the jaws of defeat etc.

( Posted by: RJKT [Member] On: October 2, 2008 )

well....

As an American who has traveled to over sixty countries in less than forty nine years and who has also lived abroad for over six years. The situation has been clear for a long time.

My grandfather was also a historian. Cycles come and go. Why should it be different for America?

Yes, Americans are smart, but they can also be pretty dumb in many areas....

I propose to transcend this debate completely with tonight's post.

Check in....

I promise surprises.

M

( Posted by: gamblerman [Member] On: October 2, 2008 )

Good for you
"American who has traveled to over sixty countries in less than forty nine years and who has also lived abroad for over six years"

If you'll pardon my speaking frankly.It is precisely because you are an American that you've been able to travel the world ,get exposed to different cultures and hopefully broaden your horizons.

Of course most other Westerners now share in this kind of 'entitlement '.

In contrast ,for as long as I can remember, this has been a luxury few Third Worlders could dream of -much less aspire to.

For one it's always been way beyond the means of most of us .

Even more crucially -few things can be more daunting than the getting that all-important visa . Jumping through hoops , being at the receiving end of intense and often humiliating grilling by Western consular offcials , and having to endure invasive medical examinations etc. are about par for the course. (The basic consular approach being : the applicant is 'guilty until he or she is proved innocent'.)

Believe you me ,had the average Westerner been subjected to even a fraction of such treatment he or she ,would long ago have been up in arms.

So the upshot is many of us remain where we are - unenlightened as ever.

Cycles : I have no doubt you're right about the essential cyclicality of history . Though I suspect the Western Empire is far from being anywhere near the end of its cycle.

( Posted by: RJKT [Member] On: October 3, 2008 )

It's Karma....
You surly understand this and rich third worlders travel a lot too....I believe things are more complex than cycles....read my post on level-hopping...

( Posted by: gamblerman [Member] On: October 3, 2008 )

Add Your Comment

You Must be a member to post comments and ratings. If you are NOT already a member, signup now it only takes a few seconds!

All Fields are required

Login:
Password:

Staff Blogs: