Are we in the middle of a financial meltdown?

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Siemens is definitely a company to watch, also given the restructuring of the company by Löschi. At some point valuation also becomes too compelling for companies such as LVMH, Carrefour and SAP (the first two have a large exposure to emerging markets). Also look at Sanofi-Aventis, BioMerieux, Fresenius Medical, Roche, maybe Wincor Nixdorf. In the finance realm, you may want to consider Banco Bilbao Vizcaya Argentaria and Banco Santander (if you are brave enough to buy financials right now).

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And they are going to finance their expansion how, exactly? Serious question.

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alcohol.

 

people drink lots when they are miserable and they drink lots when they are happy. win-win. I'd probably look at a company with a good share of the take-home market.

Drug pushers are always a good bet. Invest in Big Pharma. They have the 2nd biggest team of lobbyists in the US (Insurance is #1), which is of course the vital fundemental for the health of any large industry. There's going to be a lot more clinical depression and stress-related illness as the consequences of the mess play out. My friend who works for Glaxo says they're firing scientists right and left and hiring marketing people. Drug companies have always had their priorities straight.

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possibly, it will also make Iceland much more likely to join the EU and take the euro IMHO. Small economies and currencies are inordinately vulnerable in market conditions such as these especially when you consider that it is the investment decisions of less than 30 individual Icelandic investors that has brought the whole country to its knees.

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But as JE says, in 5 years time we'll all be going "oh wasnt that scary, not". I am though really interested in how the banking landscape will look with so many banks now being nationalised in some form or other.

Oh that's easy, at least in the UK, by that time the Tories will be back in power and they'll flog them off to their mates, at a give away price, because they are "experts in the field" and all this complete incompetence will be conveniently forgotten.

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Iceland just got a bail-out from Russia. Emergency loans of 4 bn Euros. That's 12,000 Euros per person.

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UK housing won't be back to normal for 10 years. 15% down, another 25% to go, and then it'll hold. People won't forget in five years. The stock market is another story.

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agree on the housing (though some would argue that "normal" will be prices it bottoms out at). IF you look at the average houses prices during the last housing down-turn (in the UK) it took a good 8-10 years for them to recover. They will probably bottom out some time next year but I doubt there will be any significant rises soon after that, more likely stagnation for a few years before things start creeping up.

 

so if you see stock markets bouncing back, Wheel, why don't you think it is a good time to invest?

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Iceland just got a bail-out from Russia. Emergency loans of 4 bn Euros. That's 12,000 Euros per person.

If that is the case then that may help with any future polar continental shelf territorial disputes in future eh?

Odd though that russia is doing this, they aren't sitting pretty themselves at the moment.

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Hey, I respect the Russians for that. Then again maybe they did it 'cos a few nasties would come into the open if Iceland went down the tubes. Too many Russian mafia connections etc. It is well known that much of the previous Icelandic funds have flowed from Russia. They are basically just a money-washing operation.

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Long-term power positioning. With the melting polar icecap the seas up there will grow in strategic importance.

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UK housing won't be back to normal for 10 years. 15% down, another 25% to go, and then it'll hold. People won't forget in five years. The stock market is another story.

The downturn will clearly be devastating for a lot of people but I can only see good from a long term stabalisation of prices in the UK. House price inflation needs to match normal inflation not be 10% year on year.

 

This'll be the end of all the conversations about how much people have made on their houses when they've actually made nothing as you have to sell it to realise any profit.

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BHS suffers 34% fall in profits (BBC News)

 

 

BHS, the department store group owned by retail tycoon Philip Green, has reported a 34% fall in annual profits.

 

For the year to the end of March, pre-tax profits at BHS were down 34% to £32.6m from £49.4m 12 months earlier.

 

Like-for-like sales, which strip out the impact of any new store openings during the year, declined by 3%.

 

 

Last Thursday, rival Marks & Spencer reported its worst quarterly sales performance for more than three years as retailers begin to suffer from the economic slowdown.

This is the kinda delayed "real world" effects that I am talking/worried about.

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The downturn will clearly be devastating for a lot of people but I can only see good from a long term stabalisation of prices in the UK. House price inflation needs to match normal inflation not be 10% year on year.

 

This'll be the end of all the conversations about how much people have made on their houses when they've actually made nothing as you have to sell it to realise any profit.

why? Land is not a limitless commodity and with the population set to rise to 80 million within a generation there will be extreme pressures on housing. I can see demand for housing out-stripping supply again in the not too distant future which will start us back on the upwards-spiral. It'll take a few years but we'll get back there.

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Don´t you think people should grow up and shop less anyway? Most of that shopping is done on debt which is hopefully no longer so readily available.

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Don´t you think people should grow up and shop less anyway?

You cannot say that - its not PC - witness all the (mostly US) expats bemoaning one cannot go shopping on Sundays as well!

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