Depressions spreading around the World
The generally accepted definition of a Depression is a 10% decline in GDP. Alstrynomic's chief prognosticator Alstry has been calling for a world wide depression for some time. It appears that more and more nations around the world are officially entering into a Depression.
NEW YORK (MarketWatch) -- Latvia's gross domestic product contracted by 10.5% year-on-year in the fourth quarter of 2008, the country's central statistical bureau reported Monday. The data was much worse than market expectations of a 7% decline. "This is more bad news for Latvia and we maintain that the situation is extremely critical," said analysts at Danske Bank. "Caution is still very much advised in the Latvian markets. We might also see negative spillover to the Swedish markets."
As the depression contagion spreads, expect oil prices to crash, the dollar to strengthen, and who knows what gold will do? I know there are a lot of really smart people that don't agree with Alstrynomics, you know the type, guys who brag that their IQs are a few standard deviatioins beyond the rest of us regular folk, or others that went to Harvard or some other pedigree school that are so full of themselves that they can't see what is going on around them.
For us regular folk, it is easy to see....when too many people, business, and cities borrow too much money to keep themselves going....when they can't borrow any more, they can't buy much more and things crash if too many did it. Guess what......much of America and the rest of the world enjoyed the party........Its OK, after the crash, we level out and stabilize...and those with cash who didn't over leverage can take advantage of deals.
You don't need to be really smart or have a Harvard degree to see it....actually any Fool can.....My suggestion....sit back, relax, keep on doing what you are doing, play with your family, party hard, keep the faith if the faith is what you keep, and stop looking for Heros to get you out of this....it too will pass and all will be fine.