Posted on 08/13/2009 2:07:55 PM PDT by FromLori
The global economy still faces turmoil as government try to figure out how to move out of fiscal rescue packages, which could lead to another two downturns, Deutsche Bank Chief Economist Norbert Walter said Thursday.
In addition, nervousness on the part of major dollar holders could pressure the greenback and lead to a very worrying 2010, Walter said.
Norbert said recently in research notes “the world is in trouble.”
“I believe that the rescue packages brought on have been so costly for so many governments that the exit from this fiscal policy will be very painful, very painful indeed,” he said. “Some of us are already talking about a W-shaped recovery. I’d probably talk about a triple-U-shaped recovery because there are so many stumbling blocks here to get out of this.”
“There are a few countries that have not dismissed people, they had a dramatic drop in their sales but they kept on people because they believed the recession would be very shallow,” Walter said. “They now have to fire people. That will increase unemployment and they therefore, of course, may be endangering retail sales in some countries.”
And while the White House struggles with issues like health care and puts a fiscal policy exit strategy on the back burner, there are big concerns of about the direction of the U.S. dollar.
“I’m deeply worried about the worries of those investors who have invested a lot, really a lot into the dollar” like the Chinese, Japanese, Arabs and Russians, he said.
“If they have second thoughts about the quality of this currency then the dollar is bound to weaken” which means higher long-term interest rates for a country where government debt is approaching 100 percent of gross domestic product, he said.
If that happens, “2010 could be a worrisome
(Excerpt) Read more at cnbc.com ...
This is Obama’s fault. They won’t cut spending, capital gains, allow energy development, etc.
The world has a fever...and the only prescription is MORE COWBELL!
The World’s In Trouble.
Deutsche Bank Chief Economist.
Buy Lots of Ammo.
Wonder if they knew that the title of the article was 2/3rds of a Haiku?
But I thought the recession was over? Well, I guess this is why we need healthcare reform and cap and trade: Obama says both will ensure our nations financial stability! /s
The big German financial services companie like DB and Allianz are pretty sharp. they have seen hyperinflation, depressions and usurpers destroy their country before.
The big German financial services companie like DB and Allianz are pretty sharp. they have seen hyperinflation, depressions and usurpers destroy their country before.
There is no point in living any more. I’ve committed suicide 78 times this year just on your posts alone.
Deutsche Bank
Premium corporate member of the Council on Foreign Relations. Hmmm?
Seems like the one group who would know more than anyone about this economic situation.
The World’s In Trouble.
Deutsche Bank Chief Economist.
We Are Gonna Die.
The World’s In Trouble.
Deutsche Bank Chief Economist.
Grab some chick and xcrew.
The World’s In Trouble.
Deutsche Bank Chief Economist.
Drink until you puke.
The World’s In Trouble.
Deutsche Bank Chief Economist.
No point to living.
Your comment made me commit suicide three more times.
Cut it out.
The problem that the dollar holders have is what to switch into. The liquidity is not there and a selloff would only hurt them.
Be wary of Allianz we took out our Master 5 early and paid a penalty because they are pretty broke.
Jim Cramer of The Street who is known for his CNBC show “Mad Money” and stock market quotes and investment advice could drive someone Mad. Worse with the questionable advice and shoddy fact checking that takes place on The Street following that kind of advice could end with you living on “The Street”.
On April 3rd this was posted on his site.
The life insurance industry has $214 billion in commercial mortgage-backed securities, according to new data from SNL Financial, which tracks the portfolios of more than 800 life insurers. More than a third of that amount, or $86 billion, is invested in bonds rated A or less. The issuers of lower-rated bonds are more likely to default, Fitch says.
Fifteen of the top 20 life insurers had more commercial mortgage-backed securities than capital and reserves. Five of those companies held more of the riskier bonds, the ones rated A or less. They were Allianz Life Insurance; Allstate Life Insurance; Manulife’s John Hancock Life Insurance; Genworth Life Insurance, part of Genworth Financial(GNW Quote - Cramer on GNW - Stock Picks); and Hartford Life Insurance, a unit of Hartford Financial Services(HIG Quote - Cramer on HIG - Stock Picks).
Allianz Life Insurance, which holds three times more of the lower-rated securities than capital and reserves, might be the most vulnerable. The company had $2.1 billion of capital and reserves and $6.9 billion of the less-desirable issues at year end.
Prudential Insurance Company of America, the largest insurance unit of Prudential Financial(PRU Quote - Cramer on PRU - Stock Picks), is the largest holder of commercial mortgage-backed securities with $11.7 billion but almost all of that amount is invested in AA-rated or AAA-rated bonds.
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Today if you go to check you will see a correction has been issued and my suspicious mind being what it is I noticed no numbers in the correction leaving me to wonder if someone brought this to the attention of Allianz and they threatened suit, or if Cramer is involved in a cover up of $4.8 billion of less desirable issues or lastly if he just gives Bad Advice
http://bluelori.blogspot.com/2009/04/following-jim-cramers-advice-may-leave.html
Be wary of Allianz we took out our Master 5 early and paid a penalty because they are pretty broke. They keep getting bailouts themselves and
Jim Cramer of The Street who is known for his CNBC show “Mad Money” and stock market quotes and investment advice could drive someone Mad. Worse with the questionable advice and shoddy fact checking that takes place on The Street following that kind of advice could end with you living on “The Street”.
On April 3rd this was posted on his site.
The life insurance industry has $214 billion in commercial mortgage-backed securities, according to new data from SNL Financial, which tracks the portfolios of more than 800 life insurers. More than a third of that amount, or $86 billion, is invested in bonds rated A or less. The issuers of lower-rated bonds are more likely to default, Fitch says.
Fifteen of the top 20 life insurers had more commercial mortgage-backed securities than capital and reserves. Five of those companies held more of the riskier bonds, the ones rated A or less. They were Allianz Life Insurance; Allstate Life Insurance; Manulife’s John Hancock Life Insurance; Genworth Life Insurance, part of Genworth Financial(GNW Quote - Cramer on GNW - Stock Picks); and Hartford Life Insurance, a unit of Hartford Financial Services(HIG Quote - Cramer on HIG - Stock Picks).
Allianz Life Insurance, which holds three times more of the lower-rated securities than capital and reserves, might be the most vulnerable. The company had $2.1 billion of capital and reserves and $6.9 billion of the less-desirable issues at year end.
Prudential Insurance Company of America, the largest insurance unit of Prudential Financial(PRU Quote - Cramer on PRU - Stock Picks), is the largest holder of commercial mortgage-backed securities with $11.7 billion but almost all of that amount is invested in AA-rated or AAA-rated bonds.
<>1 2Next >
Today if you go to check you will see a correction has been issued and my suspicious mind being what it is I noticed no numbers in the correction leaving me to wonder if someone brought this to the attention of Allianz and they threatened suit, or if Cramer is involved in a cover up of $4.8 billion of less desirable issues or lastly if he just gives Bad Advice
http://bluelori.blogspot.com/2009/04/following-jim-cramers-advice-may-leave.html
Snicker maybe you should just not click on my posts anymore I am out to find the truth.
They seem to be trying to create a permanent recession
All part of the new world order plan to bring us down to share the misery! While these filthy leaders will share the gains the rest of us will share the pain.
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