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Hot Zones

by MoleFebruary 7, 2009

We need to a comment cleaner (you guys are out of hand) and this is a good opportunity for a Saturday afternoon reality check. Nothing charges me up more than to scare my leeches into complete submission:

In case you wonder – no, this is not a heat map projecting the impact of global warming (it might actually very well be). Rather, it’s a geographic representation of the impact this financial crisis will exert across various nations as projected by a recent LEAP report.

LEAP/E2020 has studied the situation for the main countries and regions of the world along seven precise criteria enabling to measure their degree of immunity to the financial detonator.

  • Share of the economy dedicated to the financial sector
  • Share of the economy dedicated to services
  • Level of household debt
  • Quality of financial system and household assets
  • Relative amount of public debt (municipalities and social systems included)
  • Relative amount of external debt (trade and payment)
  • Share of capital-based pensions on overall pension fund system.

Based on these criteria, [the] team was able to identify 6 major groups of countries hardly related geographically but with similar profiles.

The report goes with a projection of approximately how long each of these regions will be affected and also elaborates on main challenges in overcoming this systemic crisis. Great stuff to say the least.

It pains me to say this as a brand new citizen of this nation – but the U.S. is toast – we’re done for. What you are witnessing is a complete reset of our geo-political and global economic landscape. If you are planning your retirement you might want to head over to their site to read the report in full – there is also some other valuable information. Some of it might guide you when making decisions that will affect the long term well-being of your family.

Rats – we better bank some serious coin going forward. If you depend on a day job there’s a real chance you will lose it – if not this year then perhaps the next. If you won’t take the hit then maybe your wife will or one of your close relatives. I truly believe that almost no U.S. household will be spared.

I want to be very clear on this people, as some of you might be lured into buying the impending media hype, claiming that the ‘worst is over’ and that it’s all uphill from here. Of course – that’s what the ruling elite always tells their minions – the truth, after all, is politically inconvenient. You don’t win elections or maintain control by telling everyone that they’re screwed. Which is why we see bullish sentiment kick into high gear every time the market bounces up by a few points. And I expect nothing less in a few weeks from now when we phase into a temporary stock market recovery that I expect will last a few months and will end by fall at the latest. Don’t be fooled and only use it as an opportunity to bank short term profits. The days of ‘buy and hold’ are over and unless you are under 40 you will probably not see it return during the tenure of your professional career.

Always remember that the economy and the stock market are detached. Think of it like a mirror image – and a warped one at best. What you see in the mirror is only a reflection of reality and we all know the game is rigged. Your economy is a lot more depressing than it appears.

Things are going to get a lot worse before they get better – a lot worse. As stainless steel rats survival is our main mission – so, let’s pull together and help each other through this crisis.

Quote of the week:

“Gold will be restrained until the average person has no capacity to buy it.” — Enfinity


About The Author
Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at various social media waterholes below.