Are we to see a repeat of the 2008 global crisis?

I dont think this crisis will stop untill they stop spending millions of dollars on unnecessary wars

Dear Sh Dyal, Thanks for the nice presentation on websummit.However I am sorry to say that the numericals&words in tables/charts were not legible, being so small. As such the same may be taken care of in future. Satish Chander

Dear Sir(s) :
Excluding Frontline Shares majority shares of Mid Cap, Small cap, Peni shares prices already near or below 2008 Global Crisis. What is left now !!!!

If 2008 Global Crisis really repeats What will be shape of Market ???

In 2008, the world financial system had a cardiac arrest. It was an emergency situation and the markets were not prepared for such a shock and hence they panicked.

Today, although public finances are worse off than in 2008, the condition is chronic and not that of a shock. So policy makers are aware and struggling to improve the health of their economies. Investors/speculators are also aware of the issues and hence have positioned themselves better for possible disaster.

Hence a 2008 like scenario is unlikely to be repeated.

Doomsday scenario proposers and pessimistic outlooks abound. But trust the human race to climb itself out of a mess. We have done it in the past and we shall do it in the future as well. Imaginative ways will come about to avoid armageddon.

What does a household do when it cannot meet expenses through its income and it cannot borrow anymore? It sells its assets. The western world has assets that can be sold/leased out or such. For example, their public infrastructure like highways, the use of which is undercharged, could be sold off to private companies who can then recover the full value of its use. This could reduce private transport and shift people towards public transport. Lower vehicles on the road could mean lower demand for crude and hence lesser imports and better current account balance. The money thus saved could be used to reduce debt/invest in infrastructure etc.

Also a usage tax on motor fuel can be implemented, just like a cess or a sales tax. The money thus collected can be used to finance infrastructure and generate jobs, boost GDP and boost government revenues and reduce deficits...

There are many possibilities. So my friends, don't write off the Americans.

I believe that the situation is worse than 2008 because all the money (printed &) pumped in these three years have not been productive at all. Because no new manufacturing facilities are installed. And also the concept of working at very high margins has not changed which will effect the demand for goods at high prices retailers are charging.

ur opinions on gold don't carry uniformity...if gold is not gonna lose its shine & given the way its growing @ more than 20% on an annual basis, y do u advocate on treatin it as an insurance & not as an investment?

as things stand now, any equity portfolio may not outperform gold either in short or long term...gold has never given negative returns either, so y not invest in it for making profit?

And yes, as far as working in the markets are concered, your thoughts for the day by Walter Schloss sums up everything. REad and Re-read that every day before invt / trading.
Thanks

Dear Sir,
Yes the spectre of 2008 does loom large over the markets, but once agian Indian mkts may not go down much. there is strong buying and mkts will once again restrict major downfall.
The "ANNA" effect is been seen on the GOI. Fast decisions are been taken. Govt seems to be moving with its reform agenda. LAnd reform bill, though is to counter Mayawati in the UP elections, will help Ind. to take proper initiatives to develop. Growth is sustained at 7.7% which is good, and after all the hype of increase in rates on 16th Sept., RBI may not just do that.
So overall we may be able to sustain at the present levels and slowly and steadily move up.
Regarding Gold, Indian are the biggest consumers and that is the onbly way our people believe in savings (only less than 2% invest in Stocks, also the level of insured popn. is much less), thus do not expect it to go below 25000 in near future and 20000 in long term. Also your article y'day re:Gold as unproductive invt., the above is also the answer to it. We do not buy gold for invt., but for our future consumption: daughter's marriage, higher education and max. to make jewellery for our grand-grand children to cherish.( We will not enjoy the fruits of this invt., but will pride ourselves to leave it for our grandchildren).
Thanks.

Your comment "Germany are not too enthused about bailing its lesser fortunate peers while many others favour it."

I wonder if they "lesser fortunate" or "less productive" and "living beyond their means" !!! I wonder I Germany should bear that cost.