Post by Steve Gardner on Jun 11, 2008 22:46:54 GMT
It's doom and gloom.
As I type this, I look at the data being displayed in the header above. The FTSE fell 104 today to close at 5,723.30. The Dow closed down 205.99 today at 12,083.77. Oil sits at $136.34.
The reality for most people is that, regardless of the 'official' figure, inflation is skyrocketing. On the flip side, again regardless of the 'official' figures, house prices (at least those in some areas) are plummeting.
With warnings today from Gazprom's CEO that oil could hit $250 per barrel, it's hard to see anything but higher rates of inflation and lower house prices, leading to considerable long-term hardship for a great many people.
Source: Banking Times
As I type this, I look at the data being displayed in the header above. The FTSE fell 104 today to close at 5,723.30. The Dow closed down 205.99 today at 12,083.77. Oil sits at $136.34.
The reality for most people is that, regardless of the 'official' figure, inflation is skyrocketing. On the flip side, again regardless of the 'official' figures, house prices (at least those in some areas) are plummeting.
With warnings today from Gazprom's CEO that oil could hit $250 per barrel, it's hard to see anything but higher rates of inflation and lower house prices, leading to considerable long-term hardship for a great many people.
Source: Banking Times
The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s.
In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.
According to the BIS, complex credit instruments, a strong appetite for risk, rising levels of household debt and long-term imbalances in the world currency system, all form part of the loose monetarist policy that could result in another Great Depression.
The report points out that between March and May of this year, interbank lending continued to show signs of extreme stress and that this could be set to continue well into the future.
It also raises concerns about the Chinese economy and questions whether China may be repeating mistakes made by Japan, with its so called bubble economy of the late 1980s.
