I don’t know about Spain but there are lots of differences from Ireland. Ireland had multinationals basing themselves there and fast GDP growth. It had joined the Euro and the European Central Bank had lower interest rates than Ireland would otherwise have had. So low interest rates were leveraged on top of rapidly burgeoning GDP growth and incomes. German Banks had also lent large amounts of money to the Celtic Tiger. Irish property was well-inflated.
Ireland offered massive tax discounts to attract those multinationals. Not sure why the rest of Europe stood for it.
That's interesting thanks for sharing.
Yeah buying Puts, the time decay can kill you.
As the article mentions, equities actually do well during wars it might be better to buy Calls.
If things go to he'll in a hand basket, typically everything gets sold, as margin calls hit players cash reserves, and the dollar rises.
In 2008, gold lost around 30% and then went on to triple.
There are certainly parallels to the 1930s for sure which is scary and it's scary that we have people in NZ that are supporting those extreme right wing nut jobs.
Dropping interest rates is good as well as bad. Good for borrowers and homeowners. Bad thing is it could lead to next bubble as assets prices are historically high. I like safe heavens in stocks and commodities now. Completely out from hot stocks of today. There are so many crises like retirement crisis, debt crisis and geopolitical issues have not resolved completely. Anyway, hitting all time high again and again means we could see all time low next as the cycle repeats.
Dropping interest rates is good as well as bad. Good for borrowers and homeowners. Bad thing is it could lead to next bubble as assets prices are historically high. I like safe heavens in stocks and commodities now. Completely out from hot stocks of today. There are so many crises like retirement crisis, debt crisis and geopolitical issues have not resolved completely. Anyway, hitting all time high again and again means we could see all time low next as the cycle repeats.
Originally Posted by Bjauck
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