World Economy Collapsing?

14Aug2007

Has anyone else noticed the World Economy collapsing over the past week or so? I mean the markets aren't great in the US, but the ECB has also injected 7.7 billion euros into the world money market today following a whopping 61bn last Friday.

The US Federal Reserve... $38billion Friday, more today.

Is this normal? It can't be.

The culprit? The US mortgage market and credit cards.

Here's a rule, 'money' doesn't exist without 'collateral'. I'm sure some higher level economists would disagree with me, but stick to that and its hard to go wrong. Start inventing money, Refinancing against outdated property values, charging credit cards against potential income... it gets shakey.

This is actually a pretty scary move. Japan $8.5 bn, Aus. 4.95billion.

Injecting money into the money market, as I understand it, please correct me if you know better, is a practice that came about after the last world collapse (The Great Depression anyone?). The idea being if the government banks keep enough money back to offset to prospective money that evaporates when there is a scare they can prevent a run on normal banks.

All that, of course, implies that a crash *should* have happened this week, of large proportions, and didn't cause we had safeguards. But that stikes me as a safeguard that shouldn't be used often.

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13 Jan23:37

I have been crying and praying for two years

By Anonymous (not verified)

I hope it not only crashes but smashes

the rich have ingored the poor and judged them READ LUKE SIX

the rich are to be commanded to care and share and all they do is snear and judge

what will your money do for you when its not worth anything ???????

you can afford oil so you spend your three grand a year to heat your house

when the oil stops flowing my three wood stoves will keep me warm what about you?

and you judged me for being lazy having woodstoves is an excuse so he doesnt have to work

i have pairs of geese and chickens and ducks pairs breed babies hatch and more food

what are you going to eat when Zehrs is empty

I hope and pray and hope and pray with all my heart

that every rich prick in the country that has horded and not shared and not cared

and bought seventy five thousand dollar suvs and bmws and benz

and never would consider helping a single mom buy a little car or van for her children to be safe it

I cant wait until your starving to death I cant wait until windstorms destroy your million dollar mansions

you deserve everything you get rich selfish self centered judgemental pricks that you have been

since the greed of the late 80s

boo hoo you have stored up for yourselfs riches in the DAY OF SLAUGHTER

and i hope your blood runs over the whole dam world

10 Feb12:31

Well

By Tresler

That's one way to look at it, I suppose.

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