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Demaxie

Listed below are comments made by Demaxie between Monday, 20th October 2008 and Monday, 19th January 2009.

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Rescuing the economy, not banks 10:37am on 19 Jan 2009 Surely, this Treasury action will prolong the agony until all the toxic crap is either brought out and defaulted from the books, or transferred to a BadBank for similar winding up procedures.

If the banks involved in 'The Plan' resume lending to unfreeze the economy, then - fine.

But if they just sit on the capital as in the past, what then?

It doesn't look promising.
The rising taxpayer burden 2:18pm on 11 Nov 2008 @88

And your intellect indicates that you are such a masterful genius that you don't need to turn on your spellchecker.

Keep up the good wurck!
The rising taxpayer burden 11:22am on 11 Nov 2008 Regarding VWs utter cheek,

After the ECB stop laughing, surely they'll refer VW to that new chimera hedge fund called Porsche.

Or are VW trying to unload crappy debt for a war chest to fend off a Porsche takeover?

Can't see that flying either.
Hedge funds and VW: what a pile up! 12:42pm on 29 Oct 2008 It's taken me until now to quell the laughter!!
Not all financial centers have consistent rules, and it seems that Porsche's "loan-and-buyback" , whilst shady from an ethical pov WAS allowed by the system.

With luck, many HFs are mortally wounded! Outstanding news indeed!

If they were unaware of the systemic risks that short-selling could result in, then they have demonstrated their unfitness to survive.

Financial Darwinism rules!
Sterling shunned 09:53am on 25 Oct 2008 Charlie Bean's comments cheered me up!

After 15+ months of Credit Crunch mutation, with banks not lending and effectively pushing the rest of the global economy off the cliff, it's refreshing to hear someone tell it like it IS.

I doubt if the hedge funds are finished deleveraging yet, but we can do without them. Every other financial entity seems set on a deleveraging flight to safety ($ Yen) at the moment and this looks to be feeding upon and re-enforcing the process.

That weaker nations run to the IMF for help is a further symptom of the malaise.

Yes, the borrowing projections for GB Ltd are huge, but they're likely wide of the mark as unemployment rockets and revenues shrink. Even if enough could be borrowed to prop the system up, it probably couldn't be repaid over an eco-cycle anyway.

Since ALL governments will be trying to borrow, that pushes int rates up and the economy down further.

Before we get there though, we probably can look forward to CDS joining the party and undermining the financial sector in the grandest manner. No chance of bailing that little boondoggle out with taxpayer dough - the sums are just too VAST.

Charlie Bean seems to be cognizant of this unfolding scenario as are many contributors here. The question then becomes:

"What are the best strategies for survival?"

Cash will be King for quite a while, which FORM of cash - Ah! that's the rub isn't it?

Currently Sterling is in the doghouse (the Euro is NOT doing as well as some writers think, either), yes, the Greenback (and Yen) are pushed by flight and deleveraged capital, but nothing is forever.

There are dark fundamentals ahead for the USA with that CDS overhang and as everyone now knows - bubbles burst.
Break in service 02:14am on 23 Oct 2008 Well, they do say that 90% of network failures happen at the Physical layer....

Glad it's all sorted then.
Why power prices aren't falling 4:44pm on 20 Oct 2008 @124

Read 129 and refer back!
Why power prices aren't falling 4:42pm on 20 Oct 2008 @ 82

Think it through, #82,

Gas is eventually linked to the price of oil.

Russia doesn't depend on manufacturing or service sector exports, but on primary extractive industry (oil + gas).

The oil reserves are in decline, the price has more than halved in a quarter, gas contracts have much more inertia but will eventually be renegotiated anyway.

The biter bit though, is that IF Russia tries 'gas warfare', they know that the counterparties could (depending on contractual details of course) sue for breach of existing contract, and attempt to make up deficiencies through the Eurasian gas network.

And THEN renegotiate with Russia (much earlier) at a far lower price.

Very little rhetoric has been heard from Moskow recently - this is a surprise now?
Why power prices aren't falling 1:38pm on 20 Oct 2008 Come to think of it.

WHEN lower gas prices feed through with a global 'downturn' and various gas contracts lapse and get renegotiated at lower rates, this will be a real positive for:

Russia.

(Joking of course).

With the RTS down some 70% since the Summer, they'll really be throwing their economic might around won't they?

Seems we can expect NO 'gas supply warfare' - they'll be desperate for the revenue.
Why power prices aren't falling 1:25pm on 20 Oct 2008 Robert,

Not only is the economic news getting worse, but the the RATE at which it does so is accelerating...

Bearing in mind that the 'downturn' is now reaching the Far East and will affect (not impact) their previously exempt economies and that this is happening 15 months after sub-prime kicked all of this off, what prognoses may any of us reasonably expect?

Here's an example:

http://www.actionforex.com/fundamental-analysis/weekly-forex-fundamentals/economics-weekly%3a-uncertain-outlook-for-uk-economy-2008102065012/

Despite ministrations from the IMF, World Bank, The Fed, UK Treasury that those in power know what's happening, the data just may not be good enough or reliable enough or relevant enough!

Recession Hell!

We're all headed into a Perfect Economic Storm.
Destination - unknown..

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