Crisis: Don't we care? - page 3
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It was almost the same situation in the 70s and 80s.
And nothing :-)
The Fed got its head kicked in and immediately announced :
1.e. a 1% point increase in interest rates.
2.e. Large-scale intervention.
The Fed entered into a series of swap agreements (then they negotiated with Germany and the pound.) And for the first time in history, the Fed sold assets denominated in foreign notes. A number of loans to the IMF and started pulling the market on themselves.
By the way it was leaked that the americans and japan and EEC agreed to provide swap agreements.
The dollar also started jumping after the war between Russia and Georgia (they did not share a spatula in a sandbox):
They started dumping the FR. RF. and to take out everything into quid! Bonds were even sold!!! Even at the MICEX (foreign exchange section, brokers yelled about low liquidity) our Central Bank said action would be taken... no action was taken because when our market was closed, all trade in our bonds migrated to the UK...
The CBR was not present at the foreign exchange trading (it widened its bid corridor...) the ruble was bouncing around like crazy.
What I do not understand is this. Oil is still priced ok (before the war between the Americans and Iraq), the dollar is going up and the oil is falling.
In my town, a large factory is laying off 10% of workers. They say it's not profitable. And steel costs more than before the crisis, which makes up for expensive energy carriers. But they do not... the net profit increases year after year, and you do not need to say anything about salaries.
I am not even talking about Ukroine, constant intrigue in parliament. I even read that there is no money to hold elections again (they were stolen before...).
It seems to me that the market is simply rearranging the corridors. The quid used to race normally:
pound quid for example 1.7 to 2...
because a high quid is bad, a low quid is bad. So they must have agreed to raise the poor quid... IMHO : The market will bounce around... They will find some acceptable limits (example: EUR/USD 1,3-1,5 ) and the market will not jump around like that.
Our corporate debt should be another concern!!! It has already increased to the size of the Stabilization Fund. ( That's where mortgages are choking ... with flat prices ) that's really the problem.
P.s. The americans have oil reserves that they are saving.
I do not need to say what would happen if they re-conserve all of them :-)
There should be another concern: our corporate debt!!! has already swelled to the size of the stabilisation fund. (That's where mortgages are choking ... with flat prices) that's really the problem.
I for one don't have a clear understanding of what the economy ministry is even doing here (as if it doesn't exist at all).
I, for example, don't have a clear understanding of what the economy ministry is doing in general (as if it doesn't exist at all).
How can I put it...
They seem to be doing something, judging by the new reform... >> (pension).
http://www.finam.ru/analysis/forecasts00C63/default.asp
The crisis, plain and simple. banking.
started a couple of years ago when money holders discovered that bank interest was worse than business investment.
as a result the banks and the system as a whole have fallen below acceptable levels.
i.e. everything is working, but there are not enough chips to live up to tomorrow.
This is a very unique phenomenon, comparable to the times when there was no paper money and great powers
suffered from a shortage of settlement metal)))
the crisis is simply and clearly called a banking crisis .
started a couple of years ago when money-holders discovered that bank interest rates were worse than business investments.
as a result the banks and the system as a whole have fallen below acceptable levels.
i.e. everything is working, but there are not enough chips to live up to tomorrow.
This is a very unique phenomenon, comparable to the times when there was no paper money and great powers
suffered from lack of calculated metal))))
+ capital flowed to china to india where labour is cheaper and production is more profitable.
yusa was losing jobs, so here they come, he who does not work does not eat
The crisis is simply and clearly called a banking crisis .
started a couple of years ago, when savers discovered that bank interest was worse than investing in business.
as a result the banks and the system as a whole have fallen below acceptable levels.
i.e. everything is working, but there are not enough chips to live up to tomorrow.
This is a very unique phenomenon, comparable to the times when there was no paper money and great powers
suffered from a shortage of settlement metal)))
I am certainly no expert and do not claim to be one, but investing money in business has always been more profitable, albeit riskier than in a bank. Banks also do nothing else than to invest money in business but guarantee a relatively low interest rate to depositors and leave the risk and profit to themselves...
yes, the bank is "investing", but what interest (?) everyone was reaching up for a better life and couldn't resist.
i.e. higher interest rates - more excitement, everyone was like drunk.
prices are overheated))) especially in construction.
look at how much a sack of plaster or a sack of cement costs and compare it with the price of metal))))
.... and now those who have taken hold are no longer willing to fall and are saving again their money, but not production.
___
P.S. i.e. a PIRAMID happened in construction.
who invented it?
yes, the bank is "investing", but what interest (?) everyone was reaching up for a better life and couldn't resist.
i.e. higher interest rates - more excitement, everyone was like drunk.
prices are overheated))) especially in construction.
look at how much a sack of plaster or a sack of cement costs and compare it with the price of metal))))
.... and now those who have grabbed hold of it no longer want to fall and are saving again their money, but not the prize.
___
P.S. i.e. a PIRAMID happened in construction.
>> who invented it?
Must be self-organised. I don't see an evil genius. Everyone is/is badly off....
Construction is an industry that has always been planned.
For example under the communists the decision "Continue to curb the growth of large cities" was passed from congress to congress
Market planning is about credit availability.
Credit availability is politics, i.e. the VIP's field.
and the rest of us just buy it.
In our kz, the good economist Marchenko said long before today that the hype with new jobs in residential construction
and the supposedly economic growth from the promotion of housing will end in failure.
I can explain it this way:
housing construction does not create public profits ....
residential construction is the transfer of capital to private ownership.
that's probably a good thing, everyone can have what they want in their property
But here's the catch, this hotly desired private ownership is being borrowed from the future, against a mortgage.
i.e. the economy is straining to give away, to withdraw large funds against a mortgage obligation.
i.e. by fair pioneer to pay back in 20 years
Multiply by millions....))))
would have built with real money earned - there would have been no crisis.
and who allowed it? Who bought into the idea that housing is supposedly the engine of the economy))))))
___
P.S. I think this is an indirect economic sabotage