Are We Near The Bottom Yet?

i agree with you..

oh well, with all the mess that is happening, I believe there's a message from Him for all of us.

that's true...i just hope people will understand why all these things are happening...

that's true...i just hope people will understand why all these things are happening...

so you know why this is happening? can u tell me also?

so you know why this is happening? can u tell me also?

nobody can tell...i just know that God has His own reasons...

i have explanations but its on the human level.

i have explanations but its on the human level.

can you share it with us?

well, to me, the financial resources circulating in the world economy is basically a zero-sum game...

right now, china has a lot of financial resources to invest in overseas markets like the United States.

what's happening, to simplify things, is that the United States Treasury is selling bonds to China to finance its stimulus plans...God knows how high the coupon prices of the bonds are. I bet theyre high enough to attract investors.

In the meantime, as investors grab these US Treasury bonds, they pull out from Equities markets (Dow Jones, Nasdaq, etc.)...Then as the listed stocks tremendously lose value, these cash strapped companies in turn try to find ways to raise funds, or worse, ask the US government again to bail them out.

So it's a vicious cycle and things could spiral downwards faster unless some other and better solutions will be done.

wow! you explained it well.... maybe there are other factors aside from that... but who knows... things will get better..

there are indeed other factors, especially that our economies are well interconnected.

but what worries me is that the US economy is really in a very bad shape. And if the economy goes down and consumer demand significantly goes down, then countries that are highly dependent on US exports as source of revenues (such as Singapore, China, Germany, Japan, etc.) are also affected.

Then there's this problem now of unemployment to deal with.

So governments worldwide resort to deficit spending to provide jobs and stimulate its respective economies.

It is really a very risky time because if these deficit spendings do not translate to jobs and growth, then the problems could get more serious.

but God won't let that happen... as we all know.. God is a loving God and He is a great provider..

well here's the situation: while God is a loving God, He also created man with freedom.

God respects man's freedom and there's nothing He can do if man uses that freedom to choose the good or the bad.

But what has happened is that man has used his freedom to choose greed over the common good. The problem we have now is about greed. It's about CEOs assuring investors of these publicly listed companies that revenues and profits will go up year after year after year. Investors dont mind how it will be made possible as long as dividends are received and share prices go up.

People never seem to know how much is enough. People forgot when to stop.

Now a lot of people, including the old retirees and poor unemployed people are suffering.