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Let me say this as simply as I can.
As some of us who knows, who read the news and watches them, the world situation is not good at the moment. Previously there was the whole middle east revolution which is still taking place, which has lead to more deeper problems in the financial world. We are also facing the greek crisis, where their is still an uncertainty of the euro to lose its stability and collapse. The greece crisis has not only affected them, but all the neighboring countries aswell. The eastern world faced a major crisis which was the tsunami hit which devasted japans productivity. Now by coming tuesday if the U.S goverment doesnt come up with a solution about their debt crisis, where all the world markets are speculating for some relieved solution to take place, where even they are not uncertain, as I saw in CNN and other various news today U.S markets and other financial markets will take a 30% dip futher for the next 6 months or more, and the GDP of the U.S.A will dip to more than 5%. Global Unemployemnt rates are rising high. Global inflation and food scarcity.
At them moment, as I have understood, U.S cannot borrow money form the the treasury anymore until upcomings tuesdays decision. if they dont raise the debt limit, financial markets in the world will collapse deeply and it will take much more longer time to settle things and recover, because the first financial crisis hasnt been solved yet, with the collapse of the lehman brothers. This will be worse than that, and this time the FED reserves are not, or unable to bail it out. Rating companys have degraded so many banks and governments aswell .
Due to the pressure and the fear in all parts of the world mainly because of the european and the U.S debt crisis, ordinary investors are calling their brokers and moving their money out of stocks and mutual funds for fear of a plunge in the market in the coming weeks. As many have also feared that the stock markets are going to crash dramatically.
Gold prices have surged drastically, and they have expected it to rise $2000 per ounce in the coming months. the gold just flew up more than $100 for the fear of the global castostrophy as they believe gold is the safe haven at the present. Many investors have asked that all their stocks to be sold and the proceeds to be invested in gold, silver and Swiss francs.
Its lke 1929, but it will go faster, money markets and banks will dry up round the world, interest rates will spike highfed deposit insuarances will collapse, investors and mobs will panic.
It is like a moral hazzard, where they take your money and they are not responsible for the actions.
You may wonder how this is affecting the eastern world or more specifically, us. Our country Srilanka.
Every situation what happens in one part of the world spreads like wild fire with the wind. For example, the japan nuclear radiation , it will take time to rwach its destiantion, and before you know, it has already affected. SrI lanka GDP depends on the EU and the US and other countriesin parts of the world. When people start to panic, they lose confidence and they start to save money without investing in such dark times, because, their is uncertainty. Tourist will come, but the spending will drop, and they too suffer from economical crisis. Exports and imports will be affected, where business depends on them.
We have been going thru the bear phase for 7 months, and this will continue to be for many as well. The factors such as what we have been debating such as the credit periods, manupliations insider trading all does affect. But this bugger pricture is that there is no garuntee of what will ahppen tommorow. Observing the outflow of foreing investors could give you and idea how the situation is. People talk about the channel 4 affects on our country, where that also have to be in to consideration but investors has bigger things to worry about, and it is not our so called war crimes commited comments.
I feel, we are going thur propaganda. Our goverment is trying its level best to make the icing look better and delicious where the cake inside, its rotten waiting to break apart. We hear news in our local televisons of fact about the economicla data, been manupilated so it deosnt look bad for the normal ordianry investors or blue collar person.
I thought of writing this long article so you could just open your eyes and see the reality of whats happening around, see out side the box ,where some of us in this forum are panicking and blaming for unneccasry things.
Every Crisis brings great oppurtunites, told by Mark Mobius, thats where we should also enter, but at the moment, this is not even the beggining of it. We are just getting warmed up. So be careful when you invest in the markets nowadays, specially in colombo bourse. We recovered slighly form a huge collapse, but is it in steady moment? What rises up fast, comes down fast, what takes time, takes time to fall.
Everyone one of us our fisherman, trying to have a biog catch at the end of the day, we are like fishmonegers on stilts waiting to catch fish on a rough sea. But the similar fact is, A fisherman always sees another fisherman from afar.
As some of us who knows, who read the news and watches them, the world situation is not good at the moment. Previously there was the whole middle east revolution which is still taking place, which has lead to more deeper problems in the financial world. We are also facing the greek crisis, where their is still an uncertainty of the euro to lose its stability and collapse. The greece crisis has not only affected them, but all the neighboring countries aswell. The eastern world faced a major crisis which was the tsunami hit which devasted japans productivity. Now by coming tuesday if the U.S goverment doesnt come up with a solution about their debt crisis, where all the world markets are speculating for some relieved solution to take place, where even they are not uncertain, as I saw in CNN and other various news today U.S markets and other financial markets will take a 30% dip futher for the next 6 months or more, and the GDP of the U.S.A will dip to more than 5%. Global Unemployemnt rates are rising high. Global inflation and food scarcity.
At them moment, as I have understood, U.S cannot borrow money form the the treasury anymore until upcomings tuesdays decision. if they dont raise the debt limit, financial markets in the world will collapse deeply and it will take much more longer time to settle things and recover, because the first financial crisis hasnt been solved yet, with the collapse of the lehman brothers. This will be worse than that, and this time the FED reserves are not, or unable to bail it out. Rating companys have degraded so many banks and governments aswell .
Due to the pressure and the fear in all parts of the world mainly because of the european and the U.S debt crisis, ordinary investors are calling their brokers and moving their money out of stocks and mutual funds for fear of a plunge in the market in the coming weeks. As many have also feared that the stock markets are going to crash dramatically.
Gold prices have surged drastically, and they have expected it to rise $2000 per ounce in the coming months. the gold just flew up more than $100 for the fear of the global castostrophy as they believe gold is the safe haven at the present. Many investors have asked that all their stocks to be sold and the proceeds to be invested in gold, silver and Swiss francs.
Its lke 1929, but it will go faster, money markets and banks will dry up round the world, interest rates will spike highfed deposit insuarances will collapse, investors and mobs will panic.
It is like a moral hazzard, where they take your money and they are not responsible for the actions.
You may wonder how this is affecting the eastern world or more specifically, us. Our country Srilanka.
Every situation what happens in one part of the world spreads like wild fire with the wind. For example, the japan nuclear radiation , it will take time to rwach its destiantion, and before you know, it has already affected. SrI lanka GDP depends on the EU and the US and other countriesin parts of the world. When people start to panic, they lose confidence and they start to save money without investing in such dark times, because, their is uncertainty. Tourist will come, but the spending will drop, and they too suffer from economical crisis. Exports and imports will be affected, where business depends on them.
We have been going thru the bear phase for 7 months, and this will continue to be for many as well. The factors such as what we have been debating such as the credit periods, manupliations insider trading all does affect. But this bugger pricture is that there is no garuntee of what will ahppen tommorow. Observing the outflow of foreing investors could give you and idea how the situation is. People talk about the channel 4 affects on our country, where that also have to be in to consideration but investors has bigger things to worry about, and it is not our so called war crimes commited comments.
I feel, we are going thur propaganda. Our goverment is trying its level best to make the icing look better and delicious where the cake inside, its rotten waiting to break apart. We hear news in our local televisons of fact about the economicla data, been manupilated so it deosnt look bad for the normal ordianry investors or blue collar person.
I thought of writing this long article so you could just open your eyes and see the reality of whats happening around, see out side the box ,where some of us in this forum are panicking and blaming for unneccasry things.
Every Crisis brings great oppurtunites, told by Mark Mobius, thats where we should also enter, but at the moment, this is not even the beggining of it. We are just getting warmed up. So be careful when you invest in the markets nowadays, specially in colombo bourse. We recovered slighly form a huge collapse, but is it in steady moment? What rises up fast, comes down fast, what takes time, takes time to fall.
Everyone one of us our fisherman, trying to have a biog catch at the end of the day, we are like fishmonegers on stilts waiting to catch fish on a rough sea. But the similar fact is, A fisherman always sees another fisherman from afar.
