Can you imagine? As soon as the governments of the major economic powers got together and gave their banks almost two trillion dollars as a bribe (okay, a confidence-building measure) to get them to do something about the credit crisis, the stock markets have magically rallied - yesterday, the Dow posted its biggest one-day gain in history. See how easy it was to resolve the crisis - just throw lots of money at the people who helped cause it in the first place!
Unfortunately, it's unlikely that any of that two trillion dollars is going to help my IRA and 401(k) any time soon, but hey - someone will be helped. Maybe AIG can have another spa vacation for its execs. I'll do my part.
The other day, Miss Cellania had a great post about the effect of the economic crisis on Japanese banks:
* The Origami Bank has folded;
* Sumo Bank has gone belly up;
* Bonsai Bank announced plans to cut some branches;
* Karaoke Bank is up for sale and will likely go for a song;
* Shares in Kamikaze Bank were suspended after they nose-dived;
* Samurai Bank has had to cut its staff in half;
* Ninja Bank is reported to have taken a hit, but remains in the black;
* 500 staff at Karate Bank got the chop; and,
* Analysts report that something fishy is going on at Sushi Bank, where it is feared that staff may get a raw deal.
A good quote about economics:
Franklin D. Roosevelt: "We have always known that heedless self-interest was bad morals; now we know that it is bad economics."
And a few thoughts about economists:
George Bernard Shaw: "If all the economists in the world were laid end-to-end, they would never reach a conclusion."
From the great Roman philosopher, Anonymous:
"The economy depends upon economists as much as the weather depends on weather forecasters."
And,
"Isn't it strange? The same people who laugh at gypsy fortune tellers take economists seriously."
That's all for now...time to go to work to earn the money I can invest so that it won't be there when I retire. Sigh.
Have a good day. More thoughts tomorrow.
Bilbo
Having worked in the brokerage industry for many years, I learned early on that the stock market and the economy are a chaotic systems and that no one can predict them with any sort of proficiency. Unfortunately, if anyone really did believe that that particular emperor had no clothes on, then a lot of people would be out of work.
ReplyDeleteSame with simplifying the tax laws. Too many people would be out of a job.
I've been so worried about the Australian banks recently. Especially since I rang up each of the ones I had accounts with and they told me that they don't have any guaranteed amounts. Feeling better now that Kevin Rudd has said that all my deposits are guaranteed by the govt. I sure hope he means it.
ReplyDeleteI wish someone would throw some money at me :(
ReplyDeleteHi Bilbo!I see that even though I've been away for a bit,your blog has become even more entertaining in my absense! Everyone at the karate back got the chop???Its hilarious, almost similar to everyone here at the fisheries getting up to stinky business, which we dont....or maybe we do!!I can no longer even remember! Keep up the funny stuff,Bilbo..heaven knows with the stress I am currently under,I really need a good giggle :)))
ReplyDeleteOne economist referred to yesterday's jump as a "dead cat bounce."
ReplyDeleteIf you toss a dead cat off of a building, it will bounce a little when it hits the bottom. It's still dead...but you can expect a small bounce!
I suppose a dead elephant bounce would be more accurate but more technically difficult. Depending on the height of the building. Can't stuff a dead elephant up your sweater.
ReplyDelete"Isn't it strange? The same people who laugh at gypsy fortune tellers take economists seriously."
ReplyDeleteThis saying has been around awhile. And it's as true today as it was 40 years ago.
I saw that by Miss C as well, and posted it on Delicious & Facebook.
ReplyDeleteHeaven help us all. And hope the government just leaves us alone.
ReplyDeleteHave a great day!