Monday, June 2, 2008

Blame the deptors

Today, OMXS30 opened a bit late at 9:40 because of the technical problems that occured at the lauching of Saxess, a new system of trade. Not unsurmised, we saw a big fall in the beginning to the support of 990, but the 980 supports shortterm virginity should still be the main focus for future advance.

Oil has not yet recovered from last weeks big drop, but is likely to keep on rising this week although many analysts now claim that we're seing an bubble form and that a fall of 20-40% is probable. A scenario that we're seing more and more of, primarily from the housingmarket, but more interesting in debt.



As you can see, the U.S. economy has increased it's debt alarmingly much for almost 60 years now. Is it the consequenses of this we se now in shape of the subprimecrisis or will it adjust to a normal proportion with no larger impacts. What I am sure of is that this crisis and probable recession might have the potential to become one of the worst this generation has ever seen.

Anyway, the interesting thing about this statistic is that the latest debt bubble broke after the greatest stockmarketcrash of all time. It broke 5 years after the beginning of the depression and 2 years after the debt bubble broke, in 1937 (8 years after 1929), we saw a 47 % fall in stocks. In the 2000 hysteria, we saw a major fall in stocks, especially internetrelated. That was 8 years ago, but I have no information whether the debt has started to fall or not. Either way, we are facing a huge problem, not only for americans but for the world economy.

1 comment:

Dahlblom said...

Grymt intressant Otto!