crash and recovery


“[W]e at at a moment in history ” I would definately make time to read this eight page article/speech by William Macdonald. It's something else again…very well done. “[T]he two model global economy of the last thirty years is dying and will soon be dead.” Be prepared for change. The transition could be dangerous: the transition will take years.

I've read this eight pages again. It is very hard to summarize. My reaction to it: Keep cash in reserve, shun risk, preserve capital. If you do see an investment opportunity, think twice. Be very prudent.

  • Our (the world's) struggle “will be long and costly”. Balance sheet recessions are nasty (think Japan)
  • “There will be more casualties.”
  • The seven main elements: “recognition that one is seriously sick”, the right diagnosis, look into the abyss, political will, policy choice, market response, new shocks.
comments/crash_and_recovery.txt · Last modified: 2009/03/30 12:19 by tom
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