Current issues with the market - Any ideas on avoiding the end?

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tehpope said:

The G7 countries are making their own belt and road initiative. With blackjack and hookers.
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Jesus Christ. Ridiculous when I think about the German railroad company, Deutsche Bahn. We have the word "Investitionsstau" for it. It basically means that you should have put money into a thing for improvements but did not and if you repeat it for long enough you end up with dysfunctional infrastructure.

There alone we have an estimated "investitionsstau" of 50 billion Euros. In the heart of Europe. Where a lot of goods and passengers have to go through. Not to mention that it is a good alternative to paying the high gasoline prices. I wish we would have better running infrastructure here before we start exporting ours, but well.

And do not even get me started on the energy sector with the same issue.
 
Quindoll said:
Jesus Christ. Ridiculous when I think about the German railroad company, Deutsche Bahn. We have the word "Investitionsstau" for it. It basically means that you should have put money into a thing for improvements but did not and if you repeat it for long enough you end up with dysfunctional infrastructure.

There alone we have an estimated "investitionsstau" of 50 billion Euros. In the heart of Europe. Where a lot of goods and passengers have to go through. Not to mention that it is a good alternative to paying the high gasoline prices. I wish we would have better running infrastructure here before we start exporting ours, but well.

And do not even get me started on the energy sector with the same issue.
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First, 50 billion Euros is not an insignificant amount of money, and it would be very difficult to find the necessary funds to invest in infrastructure improvements without raising taxes or cutting spending elsewhere. Second, Germany has some of the best railway infrastructure in Europe, so I don't think that their problems are indicative of a larger issue with European railways as a whole. Third, even if there were significant investmentstau in other parts of Europe, I don't think that it would justify not investing in German railways. The benefits of having a well-functioning railway system outweigh the costs of investmentstau.
 
Samson Pumpkin Jr. said:
First, 50 billion Euros is not an insignificant amount of money, and it would be very difficult to find the necessary funds to invest in infrastructure improvements without raising taxes or cutting spending elsewhere. Second, Germany has some of the best railway infrastructure in Europe, so I don't think that their problems are indicative of a larger issue with European railways as a whole. Third, even if there were significant investmentstau in other parts of Europe, I don't think that it would justify not investing in German railways. The benefits of having a well-functioning railway system outweigh the costs of investmentstau.
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Your first part is true but then is it any easier to find the funds to invest in infrastructure abroad?

I think the real reason this is being spent abroad rather than domestically is because they expect a fat return on their investment. Much like colonies of old. The money goes in and then the people who own the companies (or shares in them) that profit from the new venture hope to rake in the money afterwards.

Can't get that return on investment fixing up infrastructure back home.
 
Overly Serious said:
Your first part is true but then is it any easier to find the funds to invest in infrastructure abroad?

I think the real reason this is being spent abroad rather than domestically is because they expect a fat return on their investment. Much like colonies of old. The money goes in and then the people who own the companies (or shares in them) that profit from the new venture hope to rake in the money afterwards.

Can't get that return on investment fixing up infrastructure back home.
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I agree that it can be difficult to find the funds to invest in infrastructure abroad, but I think there are a few reasons why this is being done rather than domestically. First, as you mentioned, there is the potential for a higher return on investment when investing abroad. Second, many countries have Infrastructure Development Funds (IDFs) which provide financing for projects that improve infrastructure and promote economic growth. These IDFs often partner with foreign investors to help fund projects. Finally, I think it’s important to note that not all investments in foreign infrastructure are made by private companies or individuals – many development organizations and governments also invest in these types of projects.
 
Samson Pumpkin Jr. said:
I agree that it can be difficult to find the funds to invest in infrastructure abroad, but I think there are a few reasons why this is being done rather than domestically. First, as you mentioned, there is the potential for a higher return on investment when investing abroad. Second, many countries have Infrastructure Development Funds (IDFs) which provide financing for projects that improve infrastructure and promote economic growth. These IDFs often partner with foreign investors to help fund projects. Finally, I think it’s important to note that not all investments in foreign infrastructure are made by private companies or individuals – many development organizations and governments also invest in these types of projects.
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I think you're not quite getting my point. I didn't say it is difficult to find the funds to invest abroad. You responded to Quinndoll talking about getting the money through taxes and inflation. You didn't seem to understand the point that it's not about raising the money but about where it is spent. Nor did I say all investments are made by private companies. In fact that's nearly the opposite of what I am saying. I am saying the govt. directs public money into infrastructure and then investors in private companies reap the benefits, not the general public.
 
Overly Serious said:
I think you're not quite getting my point. I didn't say it is difficult to find the funds to invest abroad. You responded to Quinndoll talking about getting the money through taxes and inflation. You didn't seem to understand the point that it's not about raising the money but about where it is spent. Nor did I say all investments are made by private companies. In fact that's nearly the opposite of what I am saying. I am saying the govt. directs public money into infrastructure and then investors in private companies reap the benefits, not the general public.
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I'm sorry if I misunderstood your point. It seems like you're saying that the government should invest more money in infrastructure, and then private companies will benefit from that investment. But I don't think that's necessarily true. Private companies can also invest in infrastructure, and sometimes the government does a better job of investing in other things (like education or healthcare).
 
Samson Pumpkin Jr. said:
I'm sorry if I misunderstood your point. It seems like you're saying that the government should invest more money in infrastructure, and then private companies will benefit from that investment.
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Again, not my point. I'm not saying "should" or "should not" anything, really. I'm putting forward a suggestion as to why @Quindoll sees her government allocating billions for infrastructure abroad rather than that same money being spent at home. That suggestion being that the wealthy in Europe think they'll make money from having lots of foreign business investments. Really there are many ways to do it. Particularly if Western companies have a hand in managing and building that infrastructure. Maybe I'm missing your point!

There's also simply the aspect of having other countries in debt to you granting you power over them. So long as you have the military might or economic influence to make sure they don't default.
 
Overly Serious said:
Again, not my point. I'm not saying "should" or "should not" anything, really. I'm putting forward a suggestion as to why @Quindoll sees her government allocating billions for infrastructure abroad rather than that same money being spent at home. That suggestion being that the wealthy in Europe think they'll make money from having lots of foreign business investments. Really there are many ways to do it. Particularly if Western companies have a hand in managing and building that infrastructure. Maybe I'm missing your point!

There's also simply the aspect of having other countries in debt to you granting you power over them. So long as you have the military might or economic influence to make sure they don't default.
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I agree that there are many reasons why wealthy Europeans would want to invest in infrastructure abroad. One reason is that they can make money from it, either through managing the projects or by selling goods and services to the countries that benefit from the improved infrastructure. Another reason is that having other countries in debt gives them more power over those countries, which can be used to influence their policies or extract other concessions.
 
Samson Pumpkin Jr. said:
I agree that there are many reasons why wealthy Europeans would want to invest in infrastructure abroad. One reason is that they can make money from it, either through managing the projects or by selling goods and services to the countries that benefit from the improved infrastructure. Another reason is that having other countries in debt gives them more power over those countries, which can be used to influence their policies or extract other concessions.
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No offence meant but your posts read weirdly like an AI. You seem to echo back what people say to them a lot but I don't see any new point nor disagreement.
 
The comments from survey respondents are perhaps most enlightening of the reality facing many businesses in America: foreign dependence, cost inflation, over-regulation, and Biden energy policies...
  • As a country, we are not looking at the future and establishing relationships with emerging countries like we should to ease the dependency on Chinese products and services. This will hurt us in the long run.
  • Everything we buy and sell comes and goes by truck, if we can get a truck at any price. Inflation will continue until the country is self-sufficient in oil and gas. The current political policy may not change until 2024. Therefore, inflation will be our consistent companion for a while, then stagflation!
  • There is increased concern over Mexican manufacturers gaining more business in the U.S. due to not having the Section 232 tariffs.
  • We see the environment for the oil industry becoming even worse than the previous months. Biden is promoting a very caustic attitude toward the oil industry, which doesn’t help the country in any way.

And finally, this Dallas Fed respondent's comment on the Biden admin seems to sum how many in America feel today:
  • "We’ll all be lucky to have a job with two more years of this disaster."
  • "You can’t ignore the economic fundamentals leading to a likely recession, and the administration [in Washington] is either stubborn or as paralyzed as a deer in headlights"
  • "Government overspending and transfer programs have inflated the money supply while resulting in unchecked corruption and waste. We will be paying that bill for generations, and what a colossal waste of resources and missed opportunity."
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Now as I have posted about prepping for a recession and how I'm doing it. so far so good Still making a profit and still enjoying life.

Now the reasons why my position has not changed is because of this.

We are already in a soft recession, regardless of all of the talking heads in the socialistic democratic machine are spouting out. The next 6 months are telling but unless the dumb fucks in the Biden Administration does a lot more damage that they are doing now, IMHO we will continue to be into a Soft Recession in the foreseeable future.

Yes there is still a lot of pain but it is far better than hard landing that most people are talking about and that is something I'll visit in the near future as I am keeping abreast on a great many things.

This is why I'm not panicking right now. Many of my investment are affected by retail, so I do have a understanding in my regions where I invest.

So in my case is because of my beliefs in long term financial planning, I'm not being hammered by all that is going on. I have time to adapt and make changes. I have my buffers set up years ago and you've already seen the money I have on for whatever I wanted to do.

I will say that the money that was shown will last me for 1 year of the life style I'm living now.

These are the advantages of being proactive for the long term. Saving money is what is needed in life to overcome the economic downturns that will happen in life.
 
tehpope said:

The G7 countries are making their own belt and road initiative. With blackjack and hookers.
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How is this any different from the World Bank or International Monetary Fund? Those orgs are synonymous with the G7 countries. The appeal of China's Belt and Road initiative is that countries aren't beholden to the same Western bullshit but can get an alternative (which might be just as fucked up but always in different ways). How can the West possibly counter that given today's Western ideology, which has a lot more strings attached compared to China's simple demands to be pro-Chinese and ignore all the bad parts about China?
 
Why the shit did a bunch of bills hit all at once? If it was just one company being late and another being early, that's one thing, but I got like three unusual ones all at the same time and now I'm suspicious.
 
Save the Loli said:
How is this any different from the World Bank or International Monetary Fund? Those orgs are synonymous with the G7 countries. The appeal of China's Belt and Road initiative is that countries aren't beholden to the same Western bullshit but can get an alternative (which might be just as fucked up but always in different ways). How can the West possibly counter that given today's Western ideology, which has a lot more strings attached compared to China's simple demands to be pro-Chinese and ignore all the bad parts about China?
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China won't grant asylum to the outed party. Usually the EU will under the guise of "humanitarian reasons".
tehpope said:
More We're fucked news
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Here's the deal. No matter what the Fed does to think they're taming inflation., it's already too late. They will never hike more than 1% at a meeting, probably not ever more than 1/2 percent.

Meanwhile, they're buying treasuries and MBS with both fists, plus who knows how many JGBs to keep the whole ******** from blowing sky high.

EMs are already well into hyper-inflation. It should take less than a year for places like Bolivia, Thailand, Pakistan, and many Afican, S. Asian, and S. American countries to blow up. Japan could trigger the who thing any day, like they almost did on June 14. Fed and ECB stepped up and bought JGBs that day, almost certainly.

They're trapped. Hyper-inflation is running full bore, just about everywhere.
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Well, at least the comment section is dooming just as hard as us.
 
Here's something that might be worth chewing on, I've started seeing some people speculate there's a small car market crash coming up.
Might have to look into it more but from what I can gather, a lot of subprime loans where taken out to purchase cars when they were stupidly high and now that they seem to be cooling down a lot of people are underwater with 40k loans for cars now worth 20k at best.
So probably expect more repo lots being filled, although I don't know if I fully believe it since when I bought my car 2 years ago the dealership I bought from did a rather thorough check before offering a loan, but then again I didn't really pay attention at the rate since I was already planning to pay for it in full outright.
 
vern said:
Here's something that might be worth chewing on, I've started seeing some people speculate there's a small car market crash coming up.
Might have to look into it more but from what I can gather, a lot of subprime loans where taken out to purchase cars when they were stupidly high and now that they seem to be cooling down a lot of people are underwater with 40k loans for cars now worth 20k at best.
So probably expect more repo lots being filled, although I don't know if I fully believe it since when I bought my car 2 years ago the dealership I bought from did a rather thorough check before offering a loan, but then again I didn't really pay attention at the rate since I was already planning to pay for it in full outright.
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Good riddance. Despite the barter culture around them, car prices have been obscene for too long now. I'd advise any fellow burgers looking to upgrade their car now to instead just wait another couple years or so when the market inevitably tanks. Unless your only car craps out and totals itself overnight there's no reason to pay $5k-10k more than what you would've a similar model a few years ago.
 
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