Good points.
I can't see buying stocks of any car manufacturer stock from ANY country as a smart move.
Buying any stock right now I don't see being a wise decision. I have some friends that are normally the staunchest bulls when it comes to the economy telling me they are 'frightened' by what they currently see.
I am reading a book called '
The Coming Dollar Crisis' by Richard Duncan. Although it was written in 2004, he predicted today's economy and tomorrow's as well. He predicted the dollar crisis taking place right 'after the mortgage crisis begins.' He said the USA has followed a model Japan had in the 1980's and 1990's that led to the crisis of the Yen. Bottom line: its a good book and I recommend it.
The point I was trying to make about the book is just how bad things are going to get.
He called the American recession of 1982 a 'U' shaped recession. That is, things got bad, didn't really stay bad for a long time, then began climbing back up. The recessions of 1991 and 2000 were described as a 'V' shaped recession, where the economy tanked....then bounced right back.
Most people really didn't feel those two.
The scary part is the predictions for this one:
Its not predicted to be a 'V' shape......
Its not predicted to be a 'U' shape......
Its predicted to be an 'L' shape......
That is. Things will get bad....fast...and STAY that way for a while. He predicts about 3 years of hard times at the bottom of the L.
Economics are changing. With basic necessities (such as food and fuel) rising, this will put pressure on industries that require disposable income (travel, movies, music, leisure). Even the online casino industry can not be immune to this. Our industry needs disposable capital.
He also said the US will get out of this 'L' shaped depression/recession by borrowing more money. Astounding, because that is the problem that got the country into trouble in the first place. But he said that the US has one more 'shot' at getting onto its feet. If the USA messes their economy up again after this one, then that's it. Lights out.
He also talks about Europe. He sees the world economy changing. But he also sees that the wave of a strong US recession/depression will hit Europe and Asia. He predicts both will be affected as well, with a latent hit of 6-18 months.
One thing he was certainly clear about: The US Dollar is not a good investment in today's economy. In my travels overseas I created Euro and GBP accounts. I moved US capital into those accounts to preserve my equity. It was not for the sake of profit,
just keep what I have at the same value.
I opened a small bank account in the USA the other day. I looked at what the
FDIC sign says at the bankers desk. "$100,000 -
Backed by the full faith and credit of the United States government." Those words meant alot when I was young, and both my Grandfather and my Father taught me about banking. I remember the words "Rock solid." Now, how far does "full faith and credit" go?
In today's economy, cash is king, but not US Dollars. This brings me back to the original point about the next President. The USA is in such a mess, it doesn't matter who the next president is. We are in for a very rough ride.
Edited 3 times. Last edit at 08/04/08 05:10AM by yorktown.
