[MichiganDriver]

Ever since the start of "The Great Recession", I've been noticing that oil prices have been where people "put there money where their mouth is" about our economic future. When things are looking up, oil is sitting there at over $105 a barrel, after some bad news, oil gets driven down into the $80s.

Lately I've been watching this:

Two Year Government Bond Acting as Benchmark Greece (GGGB2YR:IND) Index Performance - Bloomberg

Holy omgRweallfcked Batman! (the % stuff is how much it went up or down today, the number after "value" is the current interest rate)


Got your pantry stocked with goodies?

[One]

? Whats does a greek government bond have to do with our economy? Plus i wouldnt use oil trading as an indicator since the deregulation of commodities markets.

[MichiganDriver]

Originally Posted by One

? Whats does a greek government bond have to do with our economy? Plus i wouldnt use oil trading as an indicator since the deregulation of commodities markets.

It's all dominos. French, Italian, Spanish and German banks are heavily into Greece and if Greece tumbles they all get hurt. Our banking system is interconnected with Europe so we take the hit too. They say it might play out just like Lehman Brothers in 2008 but maybe a little worse. There we just had a wall street bank/brokerage house go under, here it's a minor country's bonds/credit/government going kaput.

I read a really sad story today. If Greece goes under and has to withdraw from the EU, they'll be printing drachmas and nobody will want them. They run a huge trade deficit, including importing 70% of their energy. Winter is coming. What a humanitarian crisis that would be if noone accepts their drachmas for fuel (or food!).

Edit: Since they're on the Mediterranean I guess winter coming wouldn't be that big of deal. They'll still need fuel and food though.

[Windwalker]

I would suggest you keep one eye peeled on the value of the US Dollar. Last year, there were 4 countries that attended a secret meeting about currency. The USA did not attend, nor were we invited.

For the last fifty some odd years, the US Dollar has been the "WORLD RESERVE CURRENCY". That means that countries all over the world used the US Dollar for international dealings. Oil is traded in US Dollars. Well, Japan, China, France, and one more met to discuss replacing the US Dollar. If we lose the status of being the World Reserve Currency, the value of the Dollar will really go down. The bottom will drop out. You'll see triple-digit inflation. It will make the 30s look like a walk in the park.

Now, the problem is that the more money we print, the less the value of each Dollar. And, Berneke is printing more and more. The farther the US Dollar goes down, the more value other countries lose with their reserve currency. Not much different than the stock market. Stock goes down, get rid of it. And, the more that get rid of it, the more the value goes down. The credit rating of the USA might not sound like much, but it is another reason to get rid of the US Dollar.

You could be looking at some very hard times ahead. And, for all of the people that are selling off gold, it would be one way to hold a "hedge" while the dollar drops. But, actually those that invest in silver stand to do far better, dollar for dollar. Gold stands to go up 200% to 300%. But, silver stands to go up as much as 800%. It might be cheaper, but it's a better bet.

And, if all this happens, jobs????? Or "jobless"... You ain't seen nothin' yet.

So, keep a very close eye on the value of the Dollar.

[One]

Omg chill out bro! It doesnt matter what wall street does, it does not directly impact our lives, neither does the value of the dollar. Unless you like to buy foreign goods,well then you made that choice...if the bottom falls out, then the big banks will all fail, we will be free from their thieving and own our homes. If we cannot buy foreign goods anymore cuz the dollars is worth nothing, so what? We do nt really need all the foreign oil, poisoned chinese ****! grow locally, produce locally and if u cant do it yourself in your area, trade with other areas in the vicinity that can and made biofuels to power engines if you do not have oil. Maybe its for the better, i dont like buying oranges from california in florida anyway, its sick.

[repete]

[QUOTE=One;502938]Omg chill out bro! It doesnt matter what wall street does, it does not directly impact our lives, neither does the value of the dollar.
if the bottom falls out, then the big banks will all fail, we will be free from their thieving and own our homes. QUOTE]

What planet do you live on? Even if you don't have a 401K or any other investment, Wall street still has an effect! Ever think about people that do have money invested? What happens when things are good and it goes up? They spend money and buy stuff, not to mention pay taxes on it and support all the poor people. What do you think happens when the market crashes? Think all those "rich" people still spend? No they keep on driveing trucks and makeing widgits or become one of the jobless poor.
You want the bank out of your life? Pay off your house and don't wait for big brother or someone else to do it for you! ( you'll feel better about yourself too)

[repete]

Originally Posted by MichiganDriver

It's all dominos. French, Italian, Spanish and German banks are heavily into Greece and if Greece tumbles they all get hurt. Our banking system is interconnected with Europe so we take the hit too. They say it might play out just like Lehman Brothers in 2008 but maybe a little worse. There we just had a wall street bank/brokerage house go under, here it's a minor country's bonds/credit/government going kaput.

I read a really sad story today. If Greece goes under and has to withdraw from the EU, they'll be printing drachmas and nobody will want them. They run a huge trade deficit, including importing 70% of their energy. Winter is coming. What a humanitarian crisis that would be if noone accepts their drachmas for fuel (or food!).

Edit: Since they're on the Mediterranean I guess winter coming wouldn't be that big of deal. They'll still need fuel and food though.

I cought part of a related story and I think they said Germany was thinking about pulling out of the EU. most people here will say so what, no biggie. Problem is they (Germany) is about the only ones that have any money. They've allready loaned Greece a ton that they may never see again.

[MichiganDriver]

Wow! Up 11% just this morning!

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I guess Greece saying elected officials will go a month without pay and enacting an emergency property tax (about $700yr extra for a 1000 sq' house) and claiming they have enough cash to last until Oct isn't convincing anyone.

[MichiganDriver]

Oops, that was so half hour ago.
Now it's up 11.6%

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Spaghetti. I'm thinking fill the cupboards with spaghetti and cheap sauce.

[Sharlie]

Originally Posted by repete

I cought part of a related story and I think they said Germany was thinking about pulling out of the EU. most people here will say so what, no biggie. Problem is they (Germany) is about the only ones that have any money. They've allready loaned Greece a ton that they may never see again.

Germany huh? It the first time being of German decent sounds like a positive. Das is gut.