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'Red warning lights' flashing for global economy

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'Red warning lights' flashing for global economy


LONDON (AP) — The global economy's problems seem to be multiplying.

Hours after the leaders of the world's 20 most developed economies sought to boost confidence by promising to increase global output by $2 trillion over five years, Japan said it had fallen into recession.

That leaves the country — the world's third-largest economy — on a long and growing list of troubled economies. China is slowing as well, and Europe can't seem to take off.

Among major economies, only the United States and Britain are growing at decent rates, and how long that lasts depends on how much trouble their trading partners are in.

British Prime Minister David Cameron warned in an opinion piece in the Guardian newspaper on Monday that the "red warning lights are flashing" for the world economy.


We keep hearing nothing but good news for the US and British economies, but the rest of the world is slowing, which can ultimately impact us negatively. Makes me wonder what scenario is correct, and will the FED raising interest rates set off a decline or give it a boost? The Markets are higher than ever, gas is cheap, and the long drawn out mortgage crisis is in sight of ending. So what is it, sunny sailing ahead, dark skies or a mixed bag depending on certain key factors? Anyone's guess right now, and probably only a few major crises from another bailout? Pouring financial support into the top corporate structure of the world does not seem to be generating any real growth.
 
We keep hearing nothing but good news for the US and British economies, but the rest of the world is slowing, which can ultimately impact us negatively. Makes me wonder what scenario is correct, and will the FED raising interest rates set off a decline or give it a boost? The Markets are higher than ever, gas is cheap, and the long drawn out mortgage crisis is in sight of ending. So what is it, sunny sailing ahead, dark skies or a mixed bag depending on certain key factors? Anyone's guess right now, and probably only a few major crises from another bailout? Pouring financial support into the top corporate structure of the world does not seem to be generating any real growth.

Gas is NOT cheap, it's just less expensive than it was. We should be paying around $1.50 - 2.00.
 
Gas is NOT cheap, it's just less expensive than it was. We should be paying around $1.50 - 2.00.

Good point, it's cheaper than in recent years. If they ever push the Keystone Pipeline thru, it should help a little more.
 
Cameron blamed the last world recession on the government, now he's the government this recession's down to the world, not him.....

As for petrol prices, what were you paying four years ago?

1416079452331_Image_galleryImage_brent_crude_graph_JPG.JPG
 
We keep hearing nothing but good news for the US and British economies, but the rest of the world is slowing, which can ultimately impact us negatively. Makes me wonder what scenario is correct, and will the FED raising interest rates set off a decline or give it a boost? The Markets are higher than ever, gas is cheap, and the long drawn out mortgage crisis is in sight of ending. So what is it, sunny sailing ahead, dark skies or a mixed bag depending on certain key factors? Anyone's guess right now, and probably only a few major crises from another bailout? Pouring financial support into the top corporate structure of the world does not seem to be generating any real growth.

The OP is wrong. Canada, Germany, Norway are all growing above 2%

After seeing the economic forecasts produced by the independent Bank of Canada, I will allow that Britain and the US are in for hard times again, but as with the '08 crach, some of us were exempt
 
Good point, it's cheaper than in recent years. If they ever push the Keystone Pipeline thru, it should help a little more.

The thing is that Keystone will have little impact on either supply or demand, since it's oil that is going to get produced and processed no matter if runs through the US or Canada. What it will do however is drive the market price down as investors react to it. Kind of the reverse of how a civil uprising in a nation that has little to do with our oil supplies can drive up gas/oil prices. I support building Keystone, but I'm also smart enough to know that while there will be some impact ongas/oil prices, it will be minimal
 
The OP is wrong. Canada, Germany, Norway are all growing above 2%

After seeing the economic forecasts produced by the independent Bank of Canada, I will allow that Britain and the US are in for hard times again, but as with the '08 crach, some of us were exempt

I think the gov's are lying so much about economic data that they wouldn't know the true figures if they were sitting on them. That's kind of my point in the OP. ;)
 
The thing is that Keystone will have little impact on either supply or demand, since it's oil that is going to get produced and processed no matter if runs through the US or Canada. What it will do however is drive the market price down as investors react to it. Kind of the reverse of how a civil uprising in a nation that has little to do with our oil supplies can drive up gas/oil prices. I support building Keystone, but I'm also smart enough to know that while there will be some impact ongas/oil prices, it will be minimal

Not completely true, when the markets saw the unrest developing in oil producing nations they reacted negatively. All commodities are subject to the short term pressure of News about perceived availability, investing and future production.
 
Gas prices are falling because the Saudi's are trying to drive their competitors out of bussiness.

Lowering their prices on their product to make exploration unprofitable.

Their competitors of-course would be the US fracking industry

If they can get it down to around 60 bucks a barrel for a extended amount of time they might just succeed.

As for Global economic data that shows things are " improving " ? I don't trust it one bit.

Especially ANYTHING out of the US Government.

If we're in the midst of such a great economic recovery then why are interest rates still down next to nothing ?
 
I think the gov's are lying so much about economic data that they wouldn't know the true figures if they were sitting on them. That's kind of my point in the OP. ;)


I wonder if it isn't part of FUD, fear, uncertainty and doubt...when created the populace, like in war, rally behind the government out of fear.
 
I wonder if it isn't part of FUD, fear, uncertainty and doubt...when created the populace, like in war, rally behind the government out of fear.

The gov't has always tried to define the narrative of current events and history to put them in a favorable light. It's how they handle PR for popularity and public faith.
 
Good point, it's cheaper than in recent years. If they ever push the Keystone Pipeline thru, it should help a little more.

No it won't. The oil companies have already said that all of it would be exported overseas. The US won't see a single drop of it.
 
No it won't. The oil companies have already said that all of it would be exported overseas. The US won't see a single drop of it.


That's not how it works.

The Keysstone pipeline WILL be great for Cities like Houston ( Pasadena )
 
Yep, they've been kicking that can down the road for the last 6 years.

Ignoring the inevitable.

From what I understand it's what cause the near collapse of the world economy in 2008 and they never even slowed down since then.
 
No it won't. The oil companies have already said that all of it would be exported overseas. The US won't see a single drop of it.

Though certain amounts of oil are targeted for particular areas, it is often priced by markets from the total aggregate available. That's why the average amount of oil is priced by the barrel.

oil chart.jpg
 
From what I understand it's what cause the near collapse of the world economy in 2008 and they never even slowed down since then.

It was never addressed.

How could it be ? It would have implicated the Democrats.

The GSEs were the primary consumer of Securities backed by Subprime loans and they committed unprecedented securities fraud when they lied on their 2006 SEC quarterly filings about the actual amount of worthless debt they held.

They only reported 1/10 of their lousy worthless toxic debt.

They drove the market. They created demand for these toxic securities and they were run and defended by the Democrats until they were declared insolvent in 2008.

The derivatives markets exploded as these worthless securities spread out into capital markets all over the world.
 
It was never addressed.

How could it be ? It would have implicated the Democrats.

The GSEs were the primary consumer of Securities backed by Subprime loans and they committed unprecedented securities fraud when they lied on their 2006 SEC quarterly filings about the actual amount of worthless debt they held.

They only reported 1/10 of their lousy worthless toxic debt.

They drove the market. They created demand for these toxic securities and they were run and defended by the Democrats until they were declared insolvent in 2008.

The derivatives markets exploded as these worthless securities spread out into capital markets all over the world.

Explains why trillions 'disappeared' from the world economy.

If those banks had declared 100% of their risk, We wouldn't have the same world economy

This is pre. 2008: It's only gotten worse.

Total_world_wealth_vs_total_world_derivatives_1998-2007.gif
 
Beware the third of March.
 
We keep hearing nothing but good news for the US and British economies, but the rest of the world is slowing, which can ultimately impact us negatively. Makes me wonder what scenario is correct, and will the FED raising interest rates set off a decline or give it a boost? The Markets are higher than ever, gas is cheap, and the long drawn out mortgage crisis is in sight of ending. So what is it, sunny sailing ahead, dark skies or a mixed bag depending on certain key factors? Anyone's guess right now, and probably only a few major crises from another bailout? Pouring financial support into the top corporate structure of the world does not seem to be generating any real growth.

Same bad loans are being made as were made prior to 2008. American dependence upon credit and credit spending is also growing. An economy based upon credit spending, especially bad credit, will always fall eventually. It's not a matter of if, it's a matter of when.
 
We keep hearing nothing but good news for the US and British economies, but the rest of the world is slowing, which can ultimately impact us negatively. Makes me wonder what scenario is correct, and will the FED raising interest rates set off a decline or give it a boost? The Markets are higher than ever, gas is cheap, and the long drawn out mortgage crisis is in sight of ending. So what is it, sunny sailing ahead, dark skies or a mixed bag depending on certain key factors? Anyone's guess right now, and probably only a few major crises from another bailout? Pouring financial support into the top corporate structure of the world does not seem to be generating any real growth.

To be honest I think it is all a scam. QE is gone and ECB refuses to do QE, so cheap money is gone.. the very thing that has been giving massive profits for the top investment banks in the world which are almost all situated in the US and UK.. the two economies that are supposedly doing "well". These same investment banks and their pet economists are the ones promoting doom and gloom and have for a while on financial news outlets. They are pissed that they are actually going to have to work for a living instead of just making money out of nothing.

This doom and gloom will always result in a slow down with consumers, especially in Europe where a fart can lead to a slowdown in consumer spending because they are afraid of a gas explosion.. Add to that the Ukraine/Russia cluster**** and you have a major problem on consumer confidence while exports are also falling. Why go out and buy a new car when you dont know if your job is there tomorrow or even if the country is still around..

Like it or not the root causes of the economic collapse of 2007-9 have not been fixed and they will cause another crisis if they are not fixed. It is time to rethink the banking sectors of all major economies.. reinstall a barrier between investment banks and real banks and break up the biggest banks in all nations. The whole financial system is out of wack.
 
To be honest I think it is all a scam. QE is gone and ECB refuses to do QE, so cheap money is gone.. the very thing that has been giving massive profits for the top investment banks in the world which are almost all situated in the US and UK.. the two economies that are supposedly doing "well". These same investment banks and their pet economists are the ones promoting doom and gloom and have for a while on financial news outlets. They are pissed that they are actually going to have to work for a living instead of just making money out of nothing.

This doom and gloom will always result in a slow down with consumers, especially in Europe where a fart can lead to a slowdown in consumer spending because they are afraid of a gas explosion.. Add to that the Ukraine/Russia cluster**** and you have a major problem on consumer confidence while exports are also falling. Why go out and buy a new car when you dont know if your job is there tomorrow or even if the country is still around..

Like it or not the root causes of the economic collapse of 2007-9 have not been fixed and they will cause another crisis if they are not fixed. It is time to rethink the banking sectors of all major economies.. reinstall a barrier between investment banks and real banks and break up the biggest banks in all nations. The whole financial system is out of wack.


The root causes of the 2007-2009 economic collapse in America was in fact Government intervention into the private sector for the purpose of addressing the massive false narrative of discriminatory lending practices

That was the ROOT cause. Government mandated lowered standards on lenders and the GSEs

In Europe it was just a bunch of corruption and Socialist policies gone bust.
 
The root causes of the 2007-2009 economic collapse in America was in fact Government intervention into the private sector for the purpose of addressing the massive false narrative of discriminatory lending practices

Holy **** that falsehood has taken hold. NO, no no no no. No one forced US banks in selling sub-prime mortgages that not even Fannie and Freddy would touch.. which in 2006 was a huge majority of all mortgages.

That was the ROOT cause. Government mandated lowered standards on lenders and the GSEs

Again NO. False, Fox News bull****. The only thing the government "mandated" was allowing banks to sell mortgages aka securitize them to Fannie and Freddie Mac and these loans had lower requirements than what the normal market would give out.

However the mortgages that caused the crisis were so ****ty and outside any regulation, that they could not even be securitize through Fannie and Freddie. You had freaking pizza delivery people selling mortgages to out of work people for **** sake.. because banks were allowed to do so as there was no rules against it.

Private sector loans, not Fannie or Freddie, triggered crisis | Economics | McClatchy DC

Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics.

More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.

Now the irony is, that without Fannie and Freddie... most American home owners would NEVER QUALIFY for a freaking mortgage!

In Europe it was just a bunch of corruption and Socialist policies gone bust.

What "socialist policies" and corruption? You right wingers keep throwing that crap out and never back it up with actual facts.
 
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