Media Financial Buzz Versus Facts
Media Financial Buzz Versus Facts
The biggest buzz today is the great ‘R’ word, Recession. Others have been citing slowdowns in many parts of the world. Whispers in the dark aisles hushed whispers of the even more dreaded Depression lingers. Why?
Let’s take a peek at the big two economies, USA and China.
But first, take a listen i n on this report by Political Analyst Harry Harding.
The US is still fighting their internal mortgage meltdown caused by an even greater housing market crisis. It is election time, their super expenditures for their oil wars and the resulting record deficits make everyone shudder.
I’m not even talking about the total bill here which will amount to Trillions of dollars but the current deficit is still cold comfort projected to be about $410 Billion for fiscal 2008. Even that is a highly optimistic figure in many circles. Approaching $600 Billion is more likely if the economic watchers are to be believed.
Savvy investors have been touting the great China stock market declines, losing about half its earlier value. Inflation had been running very much higher than expected or wanted for over a year.
Just the 2 paragraphs above alone will make most economists shiver. But often, the news in the popular media tends to be very much skewed towards sensationalism first.
Again, this causes people to react within the stock market, Forex markets or even their investment choices. But later, any “blip” in the markets simply causes more of a correction as the news is found to be not entirely bad with many other factors seemingly to balance the stated problems initially.
Is this the sure sign all things financial are headed underground? See for yourself what I mean when you add the following, again about the 2 super economies.
(USA) Now, the Bush administration is pounding out their much vaunted and also decried mortgage aid bailout package to save the American banking industry and homeowners’ bacon to the tune of $700Billion. Read that again if it boggles your mind. This is the biggest bail out package in the history of the US economy.
(China) China’s revenue in the first four months hit 406.5 billion Yuan, surging 22.8 percent on an annual basis, while its expenditure grew 31.2 percent to 346.4 billion Yuan, leaving a surplus of 60.1 billion Yuan. (The Yuan is about 1/7th of a US Dollar.) Remember the figures are only as a surplus and not the entire GDP.
Now, what a change in the picture isn’t it? In fact, I know of a number of people that are already greedily rubbing their hands in glee as they ready themselves to play predator and go straight for the bargains. But before you do, you might want to check out what this Financial Bailout Package has affected other parts of the world financial markets too.
In fact, I’d advice you to do the same but with one over riding caveat. This is “Do Your Due Diligence”! Don’t rush in blindly and acquire everything that seems like gold. Remember that all that glitters s not gold? In fact, you may actually pick up rotten eggs – a bad yolk looks as good as a good one until you eat it.
The purpose of this article is very simple. Don’t simply read a portion of what is presented before you to make your end all and be all assumptions. If you had, you’d have been on the short side of the market when you really should have been on the long side.
Tags: Due Diligence, financial, Mortgage, Recession
Posted in Competition and Business Strategy, Financial Buzz, Politics and Wall Street, Recession Fears | No Comments »
