The state of the economy.....

[eton97]

http://dailybail.com/home/brilliant-satire-clarke-dawes-on-the-insanity-of-european-de.html

Re government debt, may I draw your attention to the link above, from my earlier post, that in a very funny way explains why without MAJOR asset and debt write-downs, all we are doing is hiding one massive hole in sovereign balance sheets.

Well worth a look

And you'd be surprised how much daily trading volume is created purely by computers trading via complex algorithms that spot trends and arbitrages rather than humans making informed and calculated bets.

Some of the most aggressive market shifts in stock volatility have been caused by computers incorrectly analysing market anomalies and trading with massive volume and lightening speed on the back of this information. We have seen stock exchanges closed on the back on this and billions of $ lost.....

[Lane]

great link, will check it out when I have time to fully absorb. Also, yah, now we pretty much "print" money via computers everytime we need another liquidity injection

[quiet noise]

Thank you, eton. You are the man :)

[ImaPro]

I found this read really interesting, and pardon for my lack of knowledge but what is €1,914"bn".

[eton97]

€1,914bn = €2trillion a big bloody number.

[theconsumer]

I see little chance for that, unless one of them comes from outer space and establishes benign dictatorship.

Call me crazy if you want, but personally i think the global economy should be calculated and managed by some kind of super-AI, programmed to maintain stability, welfare and equality among people and nations. I believe people are to 1, too greedy to handle that amount of power without exploiting it for personal gain, and 2, unable to manage all the advanced equations and take action in time.

[Faust]

Besides, no machine is capable of dealing with nuanced situations.

[sam_tem]

so hould we bump this, or all go silently sob in the corner?

that isn't the sound of stock prices hitting the floor you're hearing today, it's consumers wallets being sealed shut. the double-dip is coming.

[Faust]

nobody with an economics degree ever doubted this, no? and i think this whole double-deep is bullshit talk for the masses. it's a continuing recession and it will only get worse now that Obama rolled over for Republicans yet again.

[mingrui]

Ok... as far as the luxury market is concerned, China is still hungry for everything foreign(or perceived as foreign). Besides, the US is still the biggest market. I know SZ is a community separating fashion from consumerism, but to be honest, some brands we love, such as Rick Owens, are very good business. I don't like conspicuous consumption but designers need to get their stuff sold to be able to bring out more and better designs.

It's both exciting and frustrating to be an economics student at a time such as this. You have all your assumptions about the market and the theories that have been tested based on historical data. But you are still can't explain the future.

A good read on economics leading to the mess that we have now is Too Big to Fail. It's a movie as well. In my opinion it is the best documentary about the housing crash. A good read on the Fed and the Governments response , i.e. QE1 & QE2 etc. is In Fed We Trust. The writing is a bit messy with all the names and terms but still very insightful.

[darkbydesign]

so hould we bump this, or all go silently sob in the corner?

that isn't the sound of stock prices hitting the floor you're hearing today, it's consumers wallets being sealed shut. the double-dip is coming.

Yeah-That's the truth! I have options that dropped 29% in one day and we didn't even make the "top 10 biggest losses of the day" chart. LOL Then they swing up, then down with HUGE HUGE volumes since of course anyone with cash is having a serious field day with this market. You can day trade and make 10%+ without even knowing what you are doing when the markets are this low. It's so sick.

I lost approx. 80 Rick Owen's leather jackets (let's call it every leather jacket from every RO collection) worth of cash on some options that day, but that's the market and it'll recover with time in stable ventures. Needless to say, that's indeed the sound of my M.A+ wallet being clasped shut for the time being.

[Faust]

Europe is falling apart according to everyone, but the currency markets are unimpressed. What do currency traders know that we don't?

[uL7iMa]

Europe is falling apart according to everyone, but the currency markets are unimpressed. What do currency traders know that we don't?

Could it be that there is a time lag in terms of the effects on the currency market?

Would like to hear opinions on the survival of the Euro as well!

In the event of a dissolved EU, what's gonna happen?

[michael_kard]

The EU won't dissolve anytime soon. If it ever did, it would take the rest of the world with it and nobody wants that.

[Patroklus]

The Euro isn't currently in any jeopardy, although several Southern European economies sticking to the Euro in the coming years will be enough to put it there.

As for the EU itself, dissolution wouldn't be a huge deal. Most member economies would probably do better in the long run.