The world economy is heading towards a black hole unless bold action taken
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Re: The world economy is heading towards a black hole unless bold action taken
#2Bold action might help us.
This "bold action" depends on politicians. -> Forget about it!
Strap in, change is opportunity, get ready for an exciting ride.
Re: The world economy is heading towards a black hole unless bold action taken
#3Bold action might help us. This "bold action" depends on politicians. -> Forget about it! Strap in, change is opportunity, get ready for an exciting ride.
I don't think all the new homeless people, or whoever is going to get very poor are going to find the ride all that exciting.
The guys who make money, the rich, however, certainly will. These recessions and all are always a pretty good opportunity to make more money.
Re: The world economy is heading towards a black hole unless bold action taken
#4They almost made it the entire article without throwing in a bit of Both Sides Do It nonsense.
"In America the Republicans are guilty of outrageous obstructionism and misleading simplification, while Mr Obama has favoured class warfare over fiscal leadership."
Re: The world economy is heading towards a black hole unless bold action taken
#5Bold action might help us. This "bold action" depends on politicians. -> Forget about it! Strap in, change is opportunity, get ready for an exciting ride.
I don't think all the new homeless people, or whoever is going to get very poor are going to find the ride all that exciting. The guys who make money, the rich, however, certainly will. These recessions and all are always a pretty good opportunity to make more money.
Right, so with a deeper recession looming, those of us with the wherewithal to foresee it should be asking ourselves how best we can benefit from it.
Look, it's shitty that it's going to hurt a lot of people. I wish it didn't. But, the fact that it will doesn't mean that it should hurt me.
Re: The world economy is heading towards a black hole unless bold action taken
#6Although the Economist tends to oscillate between sanguinity and (mild) hyperbole, this is as close to panicked as I have seen it in a decade. Situation downgraded from 'worrying' to 'grave.'
Re: The world economy is heading towards a black hole unless bold action taken
#7building a firewall around illiquid but solvent countries like Italy
I'm not entirely sure I understand the distinction being made between illiquidity and insolvency here, could someone please explain it? It seems to me that if you are in a state in which a high enough interest rate on your debt will put you in a death spiral from which you cannot feasibly recover, then your problem is bigger than liquidity.
Re: The world economy is heading towards a black hole unless bold action taken
#8"Bold" action by the politicians and the central banks created much of the current mess. If we'd just cleared the pipes by letting the banks fail, recapitalizing new banks, and basically rebooting the financial system, we'd be much further along.
Instead, we got bailouts and crony capitalism and ad hoc intervention, and today the global system is in many ways in worse shape now than in 2008. (Banking is more concentrated and national balance sheets are a mess from the bailouts)
Re: The world economy is heading towards a black hole unless bold action taken
#9That article has almost zero factual content to back up it's assertions. This kind of nonsensical ravings really grate me. Don't write something like 'witness the increasingly dark economic backdrop' or 'America’s economy is still limping along' without some hard numbers. This article attempts to support those statements with broad general commentary like 'summer slump in share prices and consumer confidence suggest future spending will weaken further'...that's not proof, that's an interpretation of data that the author isn't sharing.
The worst part about that article is that the meatiest statement 'That could change if Congress came to its senses, passed Barack Obama’s jobs plan and agreed on a medium-term deficit-reduction deal by November' is dead on, but delivered in such a clumsy manner it's almost a throwaway piece.
Re: The world economy is heading towards a black hole unless bold action taken
#10That article has almost zero factual content to back up it's assertions. This kind of nonsensical ravings really grate me. Don't write something like 'witness the increasingly dark economic backdrop' or 'America’s economy is still limping along' without some hard numbers. This article attempts to support those statements with broad general commentary like 'summer slump in share prices and consumer confidence suggest…
This is an online version of an article in the Leaders section of the Economist magazine. The articles in that section are mostly short summaries of topics discussed in greater detail in the relevant subsections of the issue.
For instance, the same print issue as this 'nonsensical raving' has a much more detailed summary of the euro crisis in the Briefings section if you're looking for the gory details alluded to in the leader[1].