Here’s Another Cheery Economic Outlook
Man, my mattress is looking better and better as the place to keep what money I have
Germany takes hot seat as Europe falls into the abyss
We face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars.
By Ambrose Evans-Pritchard
Investors will learn today whether the Paulson bail-out – fattened to $850bn (£480bn) by Congress – can begin to halt the death spiral in the credit system. So far, the response looks terrible.
Germany is now in the hot seat. The collapse of a rescue deal for Hypo Real Estate on Saturday threatens a €400bn (£311bn) bankruptcy that nearly matches the Lehman Brothers debacle for sheer scale.
Chancellor Angela Merkel has been forced to pull her head out of the sand, guaranteeing all German savings, a day after she rebuked Ireland for doing much the same thing. Reality intrudes.
During the past week, we have tipped over the edge, into the middle of the abyss. Systemic collapse is in full train. The Netherlands has just rushed through a second, more sweeping nationalisation of Fortis. Ireland and Greece have had to rescue all their banks. Iceland is facing an Argentine denouement.
I’m not so sure I’d be excited to own gold bars; gold has been a dog like every other commodity the past 6 months.
And they’re awfully hard to eat.
Biz | tree hugging sister | 
October 6, 2008 9:20 am
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I don’t know, Mr. Bingley, gold is the only thing that’s up so far this morning. But IIRC it’s illegal to won gold bullion. Am I remembering that right?
Forget mattresses, stockpile weapons. It will make it much easier when we’re all driving around in dune buggies trying to steal gasoline from a makeshift fortress around an oil well.
Weapons and ammo, Bill. Lots of ammo.