Comments on: An unsettling trifecta for market contagion http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/ Mohamed Mondays Mon, 30 Mar 2015 23:53:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: NukerDoggie http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-326 Tue, 04 Oct 2011 18:03:57 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-326 Whadddya MEAN they used sub-standard materials in this skyscraper! It made of the highest quality particle board and paper mache – made from ground up euro notes and plaster! Now I smell smoke! There’s a bunch of euros burning in a utility closet on the 39th floor, and the whole damn building’s about to become engulfed!

Quick! Break open the floodgates of the Deutsche Mark reservoir on the roof and flood the whole damn building before we’re all incinerated in this raging euro fire!

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By: paintcan http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-325 Tue, 04 Oct 2011 17:46:34 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-325 You Dr. Strangelove fans are becoming hysterical. Listen to the band. They’re playing their hearts out.

I love the Titanic movies. All four of them. But I don’t know anyone with a life-boat. Are any of you in them? Most of the people I know are in steerage and it’s getting wet down here. No body admits it but we were keeping first class alive all along. Our tickets were the gravy for the Line and the upper decks. The freight paid the freight. Those arrogant so and so’s tended to forget that.

One thing about living on a sinking boat is sooner or later it takes the heat off.

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By: ThinkPeople http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-324 Tue, 04 Oct 2011 17:26:02 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-324 There is no “Union” in the EU. It remains a collection of feudal tribes connected only by geography. Self-preservation (or conquest) remain the usual agenda.

The 1800’s to 2000 were driven by invention and industrial revolution. This is long since over in the US, and today’s “emerging markets” have caught up pretty quickly. The demand drivers for manufactured goods will continue to drop, and service economies will deflate on ever-falling margins.

The tribal uprisings in the middle east (cultural contagion?) haven’t occurred since before the time of the First Crusade. Idle hands, hunger, class (caste)societes, and oppression breed revolution. Who in the Arabian Pennisula and Horn of Africa remains to fall, and who will fill the power vacuum? History is littered with the dead of those attempting to ascend to power. Only the most violent and idiological will emerge.

And hence the demonstrations on Wall Street and in other western countries. From such things the seeds of revolution are sown. Let’s just hope they don’t start handing out brown shirts to everyone.

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By: Robertla http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-322 Tue, 04 Oct 2011 12:02:08 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-322 …..Mandrake, do you know why I drink only branch-water and grain alcohol?

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By: PMueller69 http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-321 Tue, 04 Oct 2011 08:37:30 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-321 As usual, Mr. El-Erian is just describing the situation without giving any CONCRETE recipe to solve the so-called “sovereign debt” situation. A situation people LIKE HIM have provoked with Bill Gross´statement of a “new normal” and other recession/depression language. Mr. El Erians language of “effective instruments” to be established is as vague and nebulous as his comments are in general. What is the “right medicine”, Mr. El Erian? What is it? You are such a smart man, why don´t you consult European politicians and tell them what the “market” wants. The truth is: Mr. El Erian is as clueless as politicians themselves. He is just giving the impression of staying above the game. No substance. Just a nice written article. That´s all he´s got to offer!

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By: NukerDoggie http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-320 Tue, 04 Oct 2011 03:45:06 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-320 CarlOmunificent, you seem to be advocating isolation and sterilization to address the spreading crisis – but if I’m going to be isolated in order to prevent contagion from getting me, I want all the necessary comforts in my ‘mine shaft’.

Down there, we’ll have to start all over to build a new society and financial/economic system. We’ll need to multiply and eventually spread our new society around the earth once the euro virus dies off. We’ll need to select females of the most stimulating nature in order to be sure to multiply our own kind faster than the eruos, who might also take refuge in their own mine shafts. I think you know where I’m going with that one.

But on the matter of isolate and sterilize – it’s too late for that. Greece cannot now be isolated from the rest of the eurozone. Its debt cannot be sterilized without inadvertently toxi-fying all that is sovereign-type debt.

Sovereign debt is turning toxic as an asset class.

…in the purity and essence of our precious bodily fluids…

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By: narguimbau http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-317 Tue, 04 Oct 2011 02:05:21 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-317 As usual, the writers suggest every possible reason for what’s going on but the right one, in this case, Peak Everything. See “The Imminent Crash Of the Oil Supply:” http://www.countercurrents.org/arguimbau 230410.htm . This article (from April of last year and nothing has happened to change its projections) shows that the oil supply is about to crash globally, but because world corporations and policymakers are favoring East Asia over the rest of the world, there is superimposed on the overall impending collapse a decrease in oil supplies for the West of approximately 1 million bpd each year, over 1%. The world outside China is worse than running on empty, and there can be no recovery this time. See “Running dry, Oil production fails to keep up with demand,” Jun 9th 2011, 15:09 by The Economist online
http://www.economist.com/blogs/dailychar t/2011/06/oil-production-and-consumption

It’s time to face what’s going on and deal with it.

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By: NukerDoggie http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-316 Tue, 04 Oct 2011 01:49:49 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-316 @CarlOmunificent: I love that movie too!!!

I see in the news tonite that the entire Greek rescue is evidently ‘under review’ and in all likelihood is now in the proverbial toilet. No funds until sometime in November at the earliest. I think this means a Greek default about mid-month October, or earlier perhaps.

There’s no firewall in place to protect Spain and Italy, and today Spain came under greater pressure in the credit markets. Italy won’t be far behind.

Jeeze, I wish we in America had one of those doomsday devices!

As Mertin Muffley frantically scrambles to come up with the recall code to stop the detonations – ope poe oep ?

Mein Fuhrer! I can walk!

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By: MohamedMalleck http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-315 Tue, 04 Oct 2011 00:29:24 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-315 Deleveraging, deleveraging, deleveraging! Does the world have any other option but to deleverage? When Soth Africa transitioned to a post-apartheid regime, the financial juggernauts of the ‘blue-eyed’ West, as Brazil’s President Lula did not hesitate to call those who had, by then, been re-baptised ‘banksters’, insisted that South Africa’s debt stock (foreign plus domestic) should not exceed 50% of GDP. The apartheid-era masters of SACOB (South African Chamber of Business) imposed on Mandela a ‘blue-eyed’ financial wizard as Minister of Finance, and made sure that his government rejected Lance Taylor’s structuralist model in favour of Jeffrey Sach’s “Wshington Consensus “model for planning the future policy orientation of South Africa. And, when the ‘blue eyed’ financial wizard was replaced as Minister of Finance by the ‘coloured’ Trevor Manuel, they engineered a huge capital flight that sent the Rand tailspinning from 6 to 14 to a US dollar within a week. Similar stories can be told about the rest of the BRICS plus Thailand, Turkey, South Korea, Argentina. Why should these emerging economies and those of the energy-resource rich Central and West Asian countries stimulate their economies to save a profligate West that continues with its mad military bravado and hubris? For far too long, the US and Europe had thought that ‘structural adjustment’ is only a witch’s potion meant only for half-wit ‘less-developed’ economies. Let them take the potion that they so ruthlessly imposed on others not so long ago or leave them to their debilitating fate. Asia, at least, can safely decouple from an unrepentant West.

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By: txgadfly http://blogs.reuters.com/mohamed-el-erian/2011/10/03/a-lethal-trifecta-for-market-contagion/#comment-314 Mon, 03 Oct 2011 23:44:12 +0000 http://blogs.reuters.com/mohamed-el-erian/?p=111#comment-314 Social cohesion is likely to go first, which will change everything. Everything. And probably not for the better either.

The wealthy and powerful live in the illusion that their positions can never change dramatically. This is very foolish and very destructive.

Yes, hang on tight!

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