Nobody Understands Debt

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#1
Nobody Understands Debt

FEB. 9, 2015
Paul Krugman

Many economists, including Janet Yellen, view global economic troubles since 2008 largely as a story about “deleveraging” — a simultaneous attempt by debtors almost everywhere to reduce their liabilities. Why is deleveraging a problem? Because my spending is your income, and your spending is my income, so if everyone slashes spending at the same time, incomes go down around the world...........

http://www.nytimes.com/2015/02/09/opinio....html?_r=0
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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#2
i think the World Economy runs on debts more then anything else. If everyone don't want to lend because don't know who(borrower) to trust, then 2008/2009 may happens again. Capital moving as debt is so much more important (larger) than equity.
Will oil prices collapse, trigger bond market reaction(perhap chaos) or even collapse.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#3
Capitalism has become creditism.
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