No bottom in sight: Soros and Volcker

[Martha]

Soros sees no bottom for world financial collapse | Reuters

"It was placed on life support, and it's still on life support. There's no sign that we are anywhere near a bottom." His {Soros}comments echoed those made earlier at the same conference by Paul Volcker, a former Federal Reserve chairman who is now a top adviser to President Barack Obama.
Volcker said industrial production around the world was declining even more rapidly than in the United States, which is itself under severe strain.
"I don't remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniforml

How do you evaluate this stuff? And why do they say this things? It will only make it worse, won't it?

[Purron]

Quote:

Originally Posted by Martha How do you evaluate this stuff? And why do they say this things? It will only make it worse, won't it?

It does make it worse. This explains why Bill Clinton advised Obama to come across less pessimistic. Clinton understands some of what is happening is psychological. I agree with him on this point and think some guarded optimism from our political leaders might help. If people believe our economy is headed for bigger trouble, their behavior actually makes things worse - a self fulfilling prophesy.

I must admit the "gloom and doom" has impacted DH and I. We are holding off on planned purchases of items such as an upgraded computer and hanging onto cash. Multiply DH and I by millions of people and it's no surprise retailers and car companies are in such bad shape.

[REWahoo]

Martha, OAG started a thread on this earlier today: http://www.early-retirement.org/foru...oom-42636.html

[Martha]

Quote:

Originally Posted by REWahoo Martha, OAG started a thread on this earlier today: http://www.early-retirement.org/foru...oom-42636.html

Great minds worry alike.

[Rich_by_the_Bay]

It always strikes me that the more people say this is unprecedented, the less we can know about how it will end. The same factors that made it drop so uniformly may allow it to correct much faster than anyone knows.

Instead of doom and gloom why don't they just admit they don't have a clue?

[Bikerdude]

Quote:

Originally Posted by Martha Soros sees no bottom for world financial collapse | Reuters "It was placed on life support, and it's still on life support. There's no sign that we are anywhere near a bottom." His {Soros}comments echoed those made earlier at the same conference by Paul Volcker, a former Federal Reserve chairman who is now a top adviser to President Barack Obama. Volcker said industrial production around the world was declining even more rapidly than in the United States, which is itself under severe strain. "I don't remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniforml How do you evaluate this stuff? And why do they say this things? It will only make it worse, won't it?

I can only assume they have a motive and its not just to scare the common folk. What that motive is I can only guess.

[Pilm]

Until foreign governments quit supporting America's spending addiction by giving us easy credit (buying T-bills/bonds), we'll keep trying to prop up an unsustainable economy. What the government really wants is to return to the housing bubble years when everyone was fat, dumb and happy (except Volker, he knew Greenspan had ruined the finance system before Greenspan even had a clue what he did). Still a bit queer [sic] that no one on the senate banking committee has a clue about the financial disaster they created along with Greenspan.

[clifp]

Quote:

Originally Posted by Rich_in_Tampa It always strikes me that the more people say this is unprecedented, the less we can know about how it will end. The same factors that made it drop so uniformly may allow it to correct much faster than anyone knows. Instead of doom and gloom why don't they just admit they don't have a clue?

Exactly Rich.

For the last month, I've argue with who have said the stimulus is horrible as well as those who said it is the magic bullet cure. We are in uncharted, unknown, unprecedented situation. People who claim with confidence that XYZ will or won't work are either liars or idiots. It is often exceedingly difficult to tell one from the other, but as general rule I classified bankers in the former, and Congress critters in the latter.

[Helen]

Quote:

Originally Posted by Pilm Until foreign governments quit supporting America's spending addiction by giving us easy credit (buying T-bills/bonds), we'll keep trying to prop up an unsustainable economy.

I still can not understand why they put such a low cap on Ibond purchases by US citizens. It seemed to come out of no where and I never heard a good explanation.

[Nords]

Quote:

Originally Posted by Bikerdude I can only assume they have a motive and its not just to scare the common folk. What that motive is I can only guess.

Like Cramer & Gross, it's quite possible that Soros is just talking his book.

I also wonder how many people call up him or his followers and beg them to manage their money.

[Gotadimple]

What Nords said.

-- Rita

[unclemick]

Mardi Gras is Tuesday - 2/24.

heh heh heh - party up! You can gloom down on Ash Wednesday. .

[Free To Canoe]

Quote:

Originally Posted by unclemick Mardi Gras is Tuesday - 2/24. heh heh heh - party up! You can gloom down on Ash Wednesday. .

Marti Gras,

Now your talking

Free

[Dennis]

"How do you evaluate this stuff? And why do they say this things? It will only make it worse, won't it?"

Re: Yes and have to consider the sources..
>Volker is a Dem Man and he has to follow his Bosses agenda..Gloom and Doom to get his Spending bills and bail outs passed.. and maybe alittle Ego , since this is His Last ride at his age..He will share in the glory of being Superman and saving the day if it works..and go down in History..
> Soros' has a Hidden agenda as well..Just Consider what he does for a liviing..
> and maybe also have the Agenda of Driving a few more Nails in the Republicans Coffin....LOL

[Meadbh]

I think there's a time for doom and gloom if it gets things done. As soon as things are in place and there are some positive leading indicators, then the positivity should start.

Up here in Canada, the government came out with an unrealistically smug economic update in November. We came pretty close to throwing the bums out.

[daloanboy]

Quote:

I can only assume they have a motive and its not just to scare the common folk. What that motive is I can only guess.

Oh that's easy. The guy's way short on the market with 10s of billions betting DOWN.

Like he's going to say, "wow, the market's cheap - the only way is up".

[deserat]

Yup self-fulfilling prophecies - I try not to allow myself to think so negatively as I find it does affect all around me.

[shotgunner]

It would have been nice if I had been thinking this negatively a year ago!