Loki,Such a global pessimist.My view is that the real sections...

Loki,

Such a global pessimist.

My view is that the real sections of the global economy are in a much better shape than in the GFC. Households, governments and the financial sector have many challenges ahead. Manufacturing and mining etc, large sections of the real economy have however got their houses in order, they've shed debt, shed inventory, shed costs and recapitalised. As a result they are much less dependent on the financial sector. Most of the emerging markets are booming.

I am not sure where it is all going, but atm I believe that globally there is a grand tussle as to who is going to take the haircut for the past mess, the financial elites, or the little guy via their governments. To make the outcome surer counter to their own interests the financial markets are saying you can't just leave it in limbo on the govt ledger. Imho the sooner the financial sector take the cut for feeding half the world the credit opium, and telling the other half their money was safe because they'd invented "risk disappearance" the better.

Bizarrely I think the RsPT was Swans attempt to make the resource sector pay in lieu of the banks, whilst eliminating govt debt. Quite why I don't know, probably a symtom of how tightly the financial sector has it's tenticles in the machinations of government in so many countries. A bankers conspiracy of diversion? - probably imho. The squid of Wall Street/Collins St have taken the traditional role of the gnomes of Zurich a step too far since the 80's imho.

The world has gone bizarre, but I am an optimist, except for for the Australian resources sector atm.

EL