Re: GLOBAL ECONOMIC RECESSION
^^ bro m sorry m very dumb and cant really understand that ur questions are sarcastic or u r asking for the sake of knowledge, in either case i will answer to be best of my ability, and if they are sarcastic i will be embarrased, or even if they are rhetoric.
i hope u r not doing for the sake of argument.
so here i go.
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So banks/financial institutions going bankrupt is not happening in China/Cuba though, correct? Besides, China is probably not as much "communist" now, they have adapted "capitalism" to an extent IMO.
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The question was is only capital states are gona suffer or communist aswell, and my answer was big NO, i also gave reasons for that. there is no TRUE communist state on the face of the earth in the current times so which states are close to communism? obviously China and Cuba, i dono of any third one, might they exist but i dono. and yes chinese banks are also suffering but i dono of any bank going bankrupt in canada, i might be wrong but i never miss the news but still i dont know of a single bank going bankrupt over there. but still there industry and financial markets are suffering cuz they are biggest exporters and lenders to the USA. And i really salute chinese economists cuz they passed the same bailout plan in February that USA just passed few weeks ago, they predicted the future right. and Cuban banks, i dont really follow, so i don wana tell u something wrong but it is a fact that the whole world is gona suffer no matter they are communist or capitalist.
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Don't you think real investors would know that in "recession" oil demand would go down?
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hmm i dono wat u mean by "real investor" is there any fake investor aswell?? there are always buyers and sellers in the market and both are called investors, now when oil made its all time high at 148.75 this year there were many investors selling and buy it, and when it came down they guys who sold it made money and the guys who bought it prolly sent there portfolio into the negative territory. now both were professional investors doing trading for there living, which ones were real? ofcourse both of em, but at that particular moment who had the right judgment won the cake. and there are always ppl with two diffrent point of views in the market, thats how it is working, and both are real, and both think in the opposite direction. if both have the same analysis there would just either buyers or sellers.
Leme also add, 6 months ago noone even could think that dow would drop to 8000 zone and S&P 500 into 800 zone, noone could, even warren buffet said few months ago that USA is not gona go into recession, we r doing well. so ur queston that dont "real investors" know that in recession oil demand would go down. so my answer is:
when oil and gold prices hiked, no sane guy thought that crisis are gona be this deep, the general predictions amongst the investors were that its gona be a slight financial crisis thats gona end in the late 2008 or early 2009, and in cuz of that dollar started falling, and the rule of thumb is when dollar falls buy gold and oil, and ppl did, i myself made a fortune outa gold,i bought at 850 and sold at 965. then bought again at 925 sold at 950. then bought again at 790 and sold at 913 (i never invest in oil cuz its too volatile for my pocket).
and in the same period of time china and india were consuming an insane amount of crude oil, that gave speculators a reason to take advantage of a demand supply thing which also caused the oil to go up, and saudi arabia also said its not gona increase the production.
and then israel said its gona attack iran's oil fields, it also caused the oil to go up.
and continous attacks at the oil pipe lines in nigera caused it to go up
attitude of venezeula's president also caused it to go up
and then last but not the least, the hurricans.
yeah so doesn matter u r an analyst or an investor, the general analysis was that oil was gona go upto $200 dollar a barrell. so no "real investor" could tell that oil was gona drop so rapidly.
and m still stuck to my point that we didn go into recession cuz of oil and gold prices hike, infact oil and gold went up cuz of recession.
i hope m not too confusing but m dumb, so please accept my apology if i couldnt understand ur questions, u can ask em again and i would be more than happy to answer u cuz i do it for living.
