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#1
I figured with all the impending threads about the economy (mostly started by me I guess) because of the impending EU crisis and ensuing after effects, let's keep it all to one thread. I hope that's ok.

Anyways, if you've been reading the news lately you'll see big things are happening in the EU. All countries except UK are changing the treaty and countries like greece are going to hell in a handbasket. Recently this happened, which is really big news:

Fitch has downgraded six of the world's largest banks, citing the challenging financial markets.

The banks include Bank of America and Goldman Sachs in the US, the UK's Barclays and France's BNP Paribas.

Germany's Deutsche Bank and Switzerland's Credit Suisse were also cut.

Fitch cut the "issuer default ratings" at the banks, which "reflect the ability of an entity to meet financial commitments on a timely basis".

Banks and credit markets have been squeezed by fear over the eurozone debt crisis, which has seen several nations in the 17-nation single currency bailed out and fears that the euro could collapse.

Banks that hold eurozone soverign debt have taken massive charges on the debt, and it has increased fears about banks lending to each other.

Last week, ratings agency Moody's downgraded France's three big banks due to their difficulty borrowing money.

http://www.bbc.co.uk/news/business-16210134

I think the bubble's about to pop.
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#2
The chairman of the French central bank, Christian Noyer, has said ratings agencies should downgrade the UK before France because its economy is weaker.

US agency Standard and Poor's recently warned France its rating could suffer over the eurozone crisis and downturn.

"The downgrade does not appear to me to be justified when considering economic fundamentals," Mr Noyer said.

The British Government responded by saying the UK had a credible plan for dealing with its deficit.

Speaking to French regional newspaper Le Telegramme, Mr Noyer said any downgrade should start with Britain "which has more deficits, as much debt, more inflation, less growth than us and where credit is slumping".

Britain was not identified as a credit risk by Standard and Poor's in its report earlier this month.

http://www.bbc.co.uk/news/world-europe-16207748

Some more gruff between France and UK.
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#3
I'll trade ya' a pickle for a nickel.
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#4
Quote by DonGlover
I'll trade ya' a pickle for a nickel.


Deep, bro. Deep.
RIP Tom Searle.
#7
Feel sorry for the likes of Greece and Portugal man, poor bastards must be going through hell. I haven't looked at this indepth at all but Germany's holding up alright at the mo, yeah?
I want to read your essays and blogs of the artistic nature!


Art evokes the mystery without which the world would not exist.

- Rene Magritte
#8
Quote by genghisgandhi
I just hope green paper with dead people on it will still be able to buy me stuff.

Unfortunately it won't. From now on, the currency will be dead people with green paper on them.

Quote by sashki
What happens when it pops? Should I start stocking up on canned food and lock myself in the basement?

I do that anyways
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#9
Quote by sashki
What happens when it pops? Should I start stocking up on canned food and lock myself in the basement?

Dunno if you're being serious, but I'm wondering about this too. How bad could this get?
#11
Quote by genghisgandhi
I just hope green paper with dead people on it will still be able to buy me stuff.

I'd invest in gold if I were you.

Quote by sashki
What happens when it pops? Should I start stocking up on canned food and lock myself in the basement?

No that's the zombie apocalypse. I'd suggest investing in gold and saving up in it.

I'm not an expert though on surviving financial crisises, I wasn't around for the great depression. Maybe Don can tell you.
Quote by mike_anderson25
Feel sorry for the likes of Greece and Portugal man, poor bastards must be going through hell. I haven't looked at this indepth at all but Germany's holding up alright at the mo, yeah?


For the moment yeah, but they're lending out money like an insecure girlfriend with a mooching loser boyfriend
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#12
The only thing we hear about in Norway is that there's not enough butter before christmas. Apparently that's a "crisis".
When some stranger on the internet says it is so, it must be so.
#13
I use Bank of America for my checkings/savings account.

Good thing I use USAA for my credit/insurance. They're a damn good company
My God, it's full of stars!
#15
Quote by Zeropathic
The only thing we hear about in Norway is that there's not enough butter before christmas. Apparently that's a "crisis".


Norway's got all the problems.

Quote by So-Cal
terrible advice

Let's hear why, mr. gold-hater
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#16
Quote by So-Cal
terrible advice

Anti-semite!
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#17
Quote by Kensai
For the moment yeah, but they're lending out money like an insecure girlfriend with a mooching loser boyfriend


Ah so what I've been hearing has been largely on the money then (punlol).
I want to read your essays and blogs of the artistic nature!


Art evokes the mystery without which the world would not exist.

- Rene Magritte
#18
Quote by Kensai
Norway's got all the problems.


Let's hear why, mr. gold-hater

Because the price of gold is at an all time high, mr. gold digger
#20
Quote by mike_anderson25
Ah so what I've been hearing has been largely on the money then (punlol).




Quote by So-Cal
Because the price of gold is at an all time high, mr. gold digger

So buy it before it gets even higher
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#21
Quote by Kensai
Let's hear why, mr. gold-hater

People might realize that it has just as little value as paper.
#22
Quote by Kensai



So buy it before it gets even higher

Can it get much higher? It's a pretty useless metal really.

thank you genghis
#23
I don't think gold will be going away anytime soon. It'll always be useful to have as something of value.
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#25
I think it will always hold some value, I just don't think now is the right time to be buying it. If you want to invest in something I'm sure there are plenty of viable and safe alternatives.
#28
Quote by So-Cal
I think it will always hold some value, I just don't think now is the right time to be buying it. If you want to invest in something I'm sure there are plenty of viable and safe alternatives.


Like what? Gold is pretty common to invest in.

Quote by sashki
Gold? I can only afford to invest in tinned beans

My dad says the best investment is education.

Your education won't be worth a damn when you're riding down the freeway being chased by a motorcycle gang of thugs shooting bullets at you like it's open season for human meat.

Unless your education is in dodging bullets and evading crazy people.
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#29
Quote by So-Cal
Because the price of gold is at an all time high, mr. gold digger


Gold price been falling recently. It had been a good run


Invest in some good ammo. You will need it
Last edited by Cianyx at Dec 15, 2011,
#30
Quote by Kensai

Your education won't be worth a damn when you're riding down the freeway being chased by a motorcycle gang of thugs shooting bullets at you like it's open season for human meat.

Unless your education is in dodging bullets and evading crazy people.

And this is where gold comes in handy?
#31
Quote by Kensai
I don't think gold will be going away anytime soon. It'll always be useful to have as something of value.

yeah but if demand rises as a temporary means of surviving a financial crisis the price is only going to go up until the point when we get into a decent position again i.e. exactly when you'll want to sell.

And although the price might rise after you buy it, when you come to sell it, it's probably going to nosedive as everyone else will be trying to do the same.
Rhythm in Jump. Dancing Close to You.

Quote by element4433
Yeah. people, like Lemoninfluence, are hypocrites and should have all their opinions invalidated from here on out.
#32
Quote by sashki
And this is where gold comes in handy?

Yes, you can throw it at people or invest it for ammo. I suggest the latter.

Quote by Lemoninfluence
yeah but if demand rises as a temporary means of surviving a financial crisis the price is only going to go up until the point when we get into a decent position again i.e. exactly when you'll want to sell.

And although the price might rise after you buy it, when you come to sell it, it's probably going to nosedive as everyone else will be trying to do the same.


Like stocks, right?
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#33
Quote by Kensai
Like stocks, right?

so then remind me why you'd invest in it?

If we're worrying about the markets collapsing, how is gold going to be any different?

It's not really a useful material so has no real inherent value. It's valuable because people say it's valuable, not because it has inherent value/use. Something like oil has inherent value as it's pretty much necessary for our society to function as it is.

something like that would be a better investment, but then that won't last forever.
Rhythm in Jump. Dancing Close to You.

Quote by element4433
Yeah. people, like Lemoninfluence, are hypocrites and should have all their opinions invalidated from here on out.
#34
Quote by Lemoninfluence
so then remind me why you'd invest in it?

If we're worrying about the markets collapsing, how is gold going to be any different?

It's not really a useful material so has no real inherent value. It's valuable because people say it's valuable, not because it has inherent value/use. Something like oil has inherent value as it's pretty much necessary for our society to function as it is.

something like that would be a better investment, but then that won't last forever.

Throughout history gold has been very valuable for trading, despite it's lack of practial uses. It's valuable because it's shiney and not practical. If you're rich you can use gold to display your wealth; you have so much money you're able to buy these non-practical and extravagant things. It's been the same thing for thousands of years. That's why it has value and people still invest in it: because people want gold.

Oil will run out and/or will be replaced by other means of energy and I'm fairly sure it's less stable than gold. I guess that's why people generally don't talk about investing in oil. You're actually the first I've heard say this. I guess it's still possible, though.

I'm not really seeing a lot of other suggestions than gold here. I'm sure there are better, though, but I haven't seen any better suggestions so far.
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#35
I'm totally up for this thread. Good job Kensai!

So, how much longer will the Euro last? 5 years? 2 years?

Also, when's the US dollar collapsing? I heard that one is more unstable than the euro. :O
#36
What global economy?

Quote by denizenz
I'll logic you right in the thyroid.

Art & Lutherie
#39
Quote by Philip_pepper
I'm totally up for this thread. Good job Kensai!

So, how much longer will the Euro last? 5 years? 2 years?

Also, when's the US dollar collapsing? I heard that one is more unstable than the euro. :O

Unless Greece, ireland and portugal either get their shit together or get booted off to hell I think there'll be trouble as both france and germany are hellbent on getting the euro back on track. They're bankrupting themselves as it is lending out money. Hopefully they will get their shit together but considering the massive debt everyone is in I wouldn't count on it.

Better start learning chinese, boys, you're gonna need it in the future.
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#40
Lol, China isn't going to interfere with the EZ. They've got some of their own problems to deal with

If you want something to invest in, just stick with bonds and stocks. It's still a predominantly solid investment
Last edited by Cianyx at Dec 15, 2011,
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