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How far down can world markets go? A little background reading about falling markets and suggests that average falls are pretty big. Of course, as we all keep reading, the current situation is ‘unprecedented’ and ‘impossible to predict’. That is all well and good, but what about previous down markets, how big were they? According… » read more

Posted by financialguy

If we all make it through this financial nightmare, and lets hope that the financial system does not collapse completely sending society instantly into the Middle Ages, (no money equals no food, transport, utilities and who knows what else, leading to social unrest and mass disorder) can we survive the next big problem? This story,… » read more

Posted by financialguy

The news that the interest rate in Iceland has jumped to 18% (from 16%) is going to have a major impact on such a small economy. BBC NEWS | Business | Iceland’s interest rate up to 18% How the need to make such a move would have been handled should Iceland have been inside the… » read more

Posted by financialguy

So how much government borrowing can one economy take? Really? Imagine, hypothetically, that a country had banking problems and that this was in large part due to excessive borrowing within corporations and by individuals, how much sense can it make for the government to borrow to bail out the borrowers? So we all know that… » read more

Posted by financialguy

Egads!! Will there be anything left in a few more trading days?? It didn’t seem very many days ago that I was surprised to see the FTSE below 5,000 points. Suddenly it is below 4,000!! I have long expected these days to come and the signs have been there for several years that the world… » read more

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Can You Say Hyperinflation?

Guess where I think the world financial system is heading? And if you want a good reason for my thoughts, take a look at this link: BBC NEWS | Business | US debt clock runs out of digits How big a clock will the American system need? And, if it happens to the US, how… » read more

Posted by financialguy