Geithner: Another Meltdown is 'Certain'

Alcohol, tabacco and firearms are always a safe bet, then real estate.

The Bond market seems to be saying slow-down ahead. Rates dropping ahead of QE2 ending in June. Rates were predicted to rise? Also, slow down in Japan, housing still in the tank, unemployment seems stuck at 9%. Another meltdown would not be pretty. I think we are in for the blahs, slow growth and permanently high unemployment. Inflation is the unknown.

I agree another slowdown is coming. The major cause is the same as the cause of the recession in 2008- high energy prices. The spike in oil to $140 was the domino that started all this.

This last month's peak up to $116 will grind the economy back - any beginnings of a recovery will be quickly smashed. There is about a 4-5 month lag between high energy and affects on the economy. Obama's policy of badmouthing oil companies, removing tax breaks for oil, and preventing additional oil production are what's contributing to the high prices we see now.

As soon as the government stops propping up the economy with the massive spending- down comes the house of cards. A policy to devalue the dollar is the only thing keeping the stock market up right now.

Housing will continue to fall in price- because of the bank bailouts- the free market still has yet to set a bottom in that market. This just prolongs the inevitable- investors are waiting for the real bottom.

http://finance.yahoo.com/blogs/daily-ticker/global-slowdown-hit-summer-even-u-says-achuthan-130920838.html

There are still TRILLIONS of dollars in Weapons of Mass Financial Destruction out there, otherwise known as derivatives. What will trigger the implosion? Could be anything, but I'd agree that high oil costs is a top contender.

There's not enough money in the entire world to do a "bail out" when that baby blows.

There are still TRILLIONS of dollars in Weapons of Mass Financial Destruction out there, otherwise known as derivatives. What will trigger the implosion? Could be anything, but I'd agree that high oil costs is a top contender.

There's not enough money in the entire world to do a "bail out" when that baby blows.

Yep. There are a number of potential bombs that could hit us at any time. I posted an artical recently where the president of the world bank stated that the world economy is one crisis away from total collapse.

Not much the Feds could do in another meltdown either.
Interest rates- already at 0
Print lots more money - dollar collapses, Oil and commodities keep rising, hyperinflation
Cut taxes- say good bye to AAA bond rating and savings/pension plans
More Stimulus spending - see above
Slash spending and cut taxes - may work, wouldn't be pretty for the dependent class/govt workers.

Derivatives are a scary problem too, I don't think they know how to regulate them. It really has not been fixed. One thing that would help is higher margin and reserve reqmts.