Thursday, January 29, 2009

Reality check - Dating A Banker Anonymous !

Here's a link I came across at Naked Capitalism .
http://www.nytimes.com/2009/01/28/nyregion/28daba.html?_r=2&ref=business
The Blog: http://dabagirls.wordpress.com/

Just in case the FED didn't notice, this is one party that has indeed ended!!

Meanwhile, """The U.S. Treasury Secretary is considering a “range of options” for its financial rescue plan, with the goal of preserving the private banking system. """
Other headlines include this one on Bloomberg:
'''Obama Leaves `Sober' Meeting With CEOs Confident of an Economic Turnaround'''

The Financial Gurus at Davos are perplexed, and its gradually becoming clear that no one has a clue how to get us out of this financial mess.
As the experts debate inflation vs deflation, I think a bigger worry is going to be UNEMPLOYMENT!
As companies continue to cut jobs to bolster bottomlines, mortgage and credit card defaults are going to increase.
In the developing world this situation is going to be particularly difficult to tackle as factories shut down or run reduced shifts, and governments could be faced with breakdown of law and order.
An example: try explaining to factory workers in China or India, that the American Consumer is tapped out & no longer needs automobile components or textiles manufactured locally!!

While bankers may have to learn to live without their bonuses, for many people in the developing world, its going to be a struggle for survival as government stimulus packages struggle to work their way through the endless bureaucracy and red tape, to meet the needs of the poor in the rural areas of the developing world.

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