BIg BIg BIG Trouble in Britian!!!!

[Mega]

http://www.telegraph.co.uk/finance/f...n-turmoil.html

Hbos-Llyods TSB resue deal OFF!

Start those printing presses!
mike

[Starving Steve]

Re: BIg BIg BIG Trouble in Britian!!!!

Banking collapses and bankruptcies are DE-flationary because the broader money supply SHRINKS. The world might just be repeating something like the deflationary experience in the 1930s.

So long as the central banks do NOT run their printing-presses, everything will work-out fine, at least for those with income and with savings. And for now, Saudi Arabia is pumping plenty of oil, at least at current price levels.....So far, so good.

The next step is to wean America and the Western nations off of their addiction to foreign oil. This would mean more atomic power, more wind farms on the Great Plains, more drilling and exploration; this would mean replacing oil with natural gas, converting coal to synthetic oil, constructing more hydro-electric dams, and it would mean more fuel efficient motor vehicles.

If we all use our heads, and if we get new thinking in the central banks, things just could work-out well.

[grapejelly]

Re: BIg BIg BIG Trouble in Britian!!!!

Banking collapses and bankruptcies are DE-flationary because the broader money supply SHRINKS. The world might just be repeating something like the deflationary experience in the 1930s.

No they are not deflationary. They are DIS inflationary. The money that they created out of thin air is still there. Assets, stocks and note values, decline, representing a diminished supply of collateral on which to make fresh loans. That is DIS-inflation.

So long as the central banks do NOT run their printing-presses, everything will work-out fine, at least for those with income and with savings. And for now, Saudi Arabia is pumping plenty of oil, at least at current price levels.....So far, so good.

The next step is to wean America and the Western nations off of their addiction to foreign oil. This would mean more atomic power, more wind farms on the Great Plains, more drilling and exploration; this would mean replacing oil with natural gas, converting coal to synthetic oil, constructing more hydro-electric dams, and it would mean more fuel efficient motor vehicles.

If we all use our heads, and if we get new thinking in the central banks, things just could work-out well.

We don't have to do anything. Just let the market takes its course. Let most of the big banks go belly up. Let a sharp depression set in. Let assets fall in value. That is all what is supposed to happen. Then out of that, will come many bargains and a new and improved economy built upon real savings and investment. How wonderful is that, the self correcting marketplace?

[*T*]

Re: BIg BIg BIG Trouble in Britian!!!!

So long as the central banks do NOT run their printing-presses, everything will work-out fine, at least for those with income and with savings.

Assuming your deposits are not amongst those vapourised...