Economic News is Disastrous Worldwide → Washingtons Blog
Economic News is Disastrous Worldwide - Washingtons Blog

Tuesday, February 17, 2009

Economic News is Disastrous Worldwide

Indications from around the world show that the global depression is deepening. Here is a roundup giving the pulse of developments:

  • Eastern Europe is tanking, and Moody's is warning that Eastern Europe's troubles could spell disaster for banks in Western Europe
  • Indeed, the Telegraph paints a stark picture of the potential effects of Eastern Europe's meltdown:
    If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung.

    Austria's finance minister Josef Pröll made frantic efforts last week to put together a €150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent €230bn to the region, equal to 70pc of Austria's GDP.

    "A failure rate of 10pc would lead to the collapse of the Austrian financial sector," reported Der Standard in Vienna. Unfortunately, that is about to happen.

    The European Bank for Reconstruction and Development (EBRD) says bad debts will top 10pc and may reach 20pc. The Vienna press said Bank Austria and its Italian owner Unicredit face a "monetary Stalingrad" in the East.

  • Danske bank is saying that Central and Eastern European countries are "melting down"
  • American banks may be insolvent, but Nouriel Roubini says that European banks may be in even worse shape than their U.S. counterparts
  • Japan - which economists had predicted might ride out the crisis better than most - is tanking
  • Huge moves are apparently being made in the forex and futures markets which do not bode well for economic stability
  • The Leap2020 forecasters say that governments have not learned anything from the crisis, and are now predicting the collapse of nations and many currencies as a result of the financial crisis and the countries' failure to stabilize the economy


  1. Hi, Just want to drop a note to thank you for your postings. I read them everyday. Really appreciate your sharing info with us during this very difficult times.

    Best Regards,


  2. I agree with what Sheila said.

  3. Well I don't. I think your posting stink and you should get a real job.

    Just kidding. Good site, thanks.

  4. This feels a bit like walking a high wire in a tornado. It hurts my little brain to try and understand all of this. Little bits of knowledge here and there are enough to scare me, what if I could follow it all.

    Thanks for you insight into this.
    The Grey Tiger

  5. This crisis is for the rich to try and subvert democracy and bring all humanity to there knees so they will accept draconian measures form the Elite.

    We will suffer only like those after Rome have suffered.

    We will be serfs living on the land OWNED by the Elites.

    After a century of no progress they will possess technology (like guns and DVD's) that would seem like magic to our primitive illiterate minds.

    The new Dark Ages.

  6. Everyone (most), bought into the fallacy (consumerism), media hype, and just plain general stupidity, which is like contagious it seems still.

    And, here we are today, a world interdependently intertwined by need, greed, and now more than ever, hope.

  7. This link should answer most questions. Its called tells from time loop. It answers a lot of past and present day questions. Most of all, you will learn there is nothing to fear but fear itself. You have nothing to lose by clicking on this link and looking for yourself.

  8. the econmomy problems has increased.
    a lot of people are without a job.! an d my friend Luyda Torchila V. too, without a job, but its okay she will get one soon. But you guys should find her a job too.


→ Thank you for contributing to the conversation by commenting. We try to read all of the comments (but don't always have the time).

→ If you write a long comment, please use paragraph breaks. Otherwise, no one will read it. Many people still won't read it, so shorter is usually better (but it's your choice).

→ The following types of comments will be deleted if we happen to see them:

-- Comments that criticize any class of people as a whole, especially when based on an attribute they don't have control over

-- Comments that explicitly call for violence

→ Because we do not read all of the comments, I am not responsible for any unlawful or distasteful comments.