Things Will Get Better!

Unless they, um, get a lot worse

Société Générale has advised clients to be ready for a possible “global economic collapse” over the next two years, mapping a strategy of defensive investments to avoid wealth destruction.

In a report entitled “Worst-case debt scenario”, the bank’s asset team said state rescue packages over the last year have merely transferred private liabilities onto sagging sovereign shoulders, creating a fresh set of problems.

Overall debt is still far too high in almost all rich economies as a share of GDP (350pc in the US), whether public or private. It must be reduced by the hard slog of “deleveraging”, for years.

All the government officials holding hands and saying “Rejoice! We have delivered you!” doesn’t mean squat as unemployment continues to rise.

Let’s see how cheery the upcoming Christmas sale season is.

2 Responses to “Things Will Get Better!”

1. JeffS says:

   November 19, 2009 at 7:59 pm

   Maybe people will buy more ammo for Christmas.

2. Yojimbo says:

   November 20, 2009 at 10:56 am

   But,but,but we’re in the very best of hands here, what could possibly go wrong?