Here’s the daily factoid about the world economy:
“Governments around the world have promised $3.3 trillion to guarantee bank deposits and bank-to-bank lending, and in many cases have taken stakes in struggling banks.
“With honesty on bank balance sheets and enough government bucks, private investors will come back in,” said Lawrence J. White, professor of economics at New York University’s Stern School of Business, who helped oversee the liquidation of savings and loan assets in the late 1980s and early 1990s.”
http://news.yahoo.com/s/nm/20081021/bs_nm/us_financial5_100
okay.. so what is the daily churn of money world wide? in 2007 the world gdp was estimated at $54.3 trillion so we end up with about 22 days worth of activity… another way to look at this is that the whole world got 3 weeks late on a payment. and thus ground to a compleat halt? no, but certainly heading that way, economically.
the question in my mind is, ok, why was the payment late? where did it get spent? answers like “corruption and politics” will always be correct, so they don’t count. Look for where it got spent, and stay away from there. look for where it didn’t get spent, and get in now. Kerkorian likes gambling and hospitality–more than he likes industry. gee, maybe industry has a chance now.
the noise about this emergency is politically driven. the question is what political solutions will become the next noise factor.
got an idea? drop it by.
Posted under business
This post was written by admin on October 22, 2008
