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alstry (36.53)

Worldwide Depression??????

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April 24, 2009 – Comments (5)

Germany's slump risks 'explosive' mood as second banking crisis looms

A clutch of political and labour leaders in Germany have raised the spectre of civil unrest after the country's leading institutes forecast a 6pc contraction of gross domestic product this year, a slump reminiscent of 1931 and bad enough to drive unemployment to 4.7m by 2010.

Michael Sommer, leader of the DGB trade union federation, called the latest wave of sackings a "declaration of war" against Germany's workers. "Social unrest can no longer be ruled out," he said.

Gesine Swann, presidential candidate for the Social Democrats, said "the mood could turn explosive" over the next three months unless the government takes drastic action.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5209033/Germanys-slump-risks-explosive-mood-as-second-banking-crisis-looms.html

MOSCOW -- The ranks of Russia's jobless swelled by 400,000 in March and are likely to keep growing, according to new estimates from Russia's government statistics agency, Rosstat.

The data for March put the unemployment rate at 10%, the highest in eight years, up from a revised 9.5% rate in February.

The figures have already exceeded official estimates for the 2009 average unemployment rate of 8.2% and seem to belie official statements that the growth of joblessness is slowing. Rosstat Tuesday revised its jobless total for February to 7.1 million from the previous 6.4 million.

http://online.wsj.com/article/SB124050098002148365.html

The U.K.'s economy took its worst dive in 30 years and Spain's jobless rate soared to nearly one in five, underscoring the pain sweeping across Europe as repercussions of the global financial crisis take hold.

http://online.wsj.com/article/SB124056263257252451.html

We know about Japans exports being DOWN almost 50%and paying people to leave the country because of lack of jobs!!!!!!!!!!!!!!!!!!!!!!!!

......and Iceland, Bulgaria, Latvia, Lithuania, Georgia, rioting in Greece, Italy and millions protesting in France.....over 20,000,000 losing jobs in China in one quarter......

And now this is what Mr. Geithner tells us this evening??????

We meet in the context of a severe downturn in the global economy. Without underestimating the challenges we still face, there are signs that the pace of deterioration in economic activity and trade flows has eased

......but we would be wrong to conclude that we are close to emerging from the darkness that descended on the global economy early last fall.

The origins of this crisis were a long period of increased borrowing and leverage and the breakdowns in many financial markets and institutions around the world. Crises that follow credit booms and originate in the collapse of financial systems tend to be more virulent and longer lasting. We do not have much experience with them on a global scale because such crises are once-in-several-generational events.

http://www.marketwatch.com/news/story/Statement-Treasury-Secretary-Geithner/story.aspx?guid=%7BE59E52A3%2D9F99%2D440F%2D9E55%2D9800974D598B%7D

WHAT DO YOU THINK ALSTRY HAS BEEN BLOGGING ABOUT FOR THE PAST YEAR......

Prepare....Don't Fear...............It is about to get a lot worse!!!!!!!!!

5 Comments – Post Your Own

#1) On April 24, 2009 at 9:17 PM, DemonDoug (32.57) wrote:

how the hell did the stock markets gain in price appreciation this week?  I shake my head at the insanity of it all.  I just red-thumbed a company today (MHK) that has a trailing 12 month eps of -21, and it was up 30% today!  Like.... are people that stupid?  Or are 99.9% of the people buying a stock like that simply traders gaming the market?  I tend to think the latter, but the fundamentals always catch up.

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#2) On April 24, 2009 at 11:01 PM, alstry (36.53) wrote:

Demon,

Few in CAPs know MHK like Alstry....you might score way more points out of your pick then you currently think.

As far as conditions....when I project a lot worse....if we stay on this trajectory...30-50% unemployment may be the least of our issues.  How people even question the projection is frankly utterly fantastic at this point.  I am amazed how controlled the media is toward the reporting current environment.

SAN FRANCISCO (MarketWatch) -- Four banks in Georgia, Michigan, California and Idaho were closed by regulators Friday, costing the Federal Deposit Insurance Corp.'s deposit insurance fund nearly $700 million as the effects of the credit crisis continued rippling throughout the U.S. economy.

Actually, MarketWatch forgot a the fifth and BIGGEST financial failure...

The National Credit Union Administration (NCUA) today assumed control of the operations of Eastern Financial Florida Credit Union, a state-chartered, federally insured credit union headquartered in Miramar, Florida.
...
Eastern Financial Florida Credit Union was originally chartered in 1937 and today serves Broward, Miami-Dade, Palm Beach, Hillsborough, Pinellas counties and the Jacksonville area. The credit union has approximately $1.6 billion in assets and just over 200,000 members.

We are already over 16% unemployment...if my analysis is correct, we should be approaching 18% when the monthly numbers come out in a few weeks.

And the Fed is using a 10.3% adverse unemployment sensitivity for the stress test???.....

how stupid does the Fed think the Gardner Bros and their CAPs players really are????

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#3) On April 25, 2009 at 9:09 AM, alstry (36.53) wrote:

KINGSTON, April 23 (Reuters) - Jamaica's government put police and the army on alert to prevent violent demonstrations as it prepared to announce tax increases on gasoline, cigarettes and other consumer items on Thursday.

Police and soldiers were deployed at what the government called "strategic" locations across the Caribbean island to quell any violent protests. Finance and Planning Minister Audley Shaw was expected to announce the tax increases during a budget debate later on Thursday.

Nation after nation....debt is suffocating ecnomies and fewer and fewer can afford to pay back debt.  Revenues are evaporating and governments are struggling to make up the shortfall.

Rioting in Europe, Southeast Asia, Africa, and now the Carribean.

Based on my estimates....if this trend continues much longer....even with a 100% marginal tax rate.....it will not be enough to offset the revenue decline.

Zombie banks create zombie nations....can you feel the beat??

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#4) On April 27, 2009 at 11:28 PM, motleyanimal (55.09) wrote:

I'm collecting recipes for brains.

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#5) On April 28, 2009 at 12:00 AM, catoismymotor (< 20) wrote:

MotleyAnimal,

Brain Helper Meals has Cerbelum Lemon Bake, Manchurian Petuitary Stir Fry and Cerebrial Cortex and Veggies. Prepare and freeze any of these before the zombie apocolypse.  Heat in the microwave should you find youself under attack. While they are distracted by the sweet smell of hot synapses you should be able to make your escape.

Cato

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