Posted to The Age (3/10/2011) on 3/10/2011 at 1:14 PM
Commenting on "Shares lose $20b as sell-off continues"
http://www.theage.com.au/business/markets/shares-lose-20b-as-selloff-continues-20111003-1l4ai.html
We have not seen the last of the fall yet. ASX ordinary index will fall to 3500 within the next few days. While we need to live more optimistically, or else life is not worth living, we also need to be realistic and live within our means. Everything, in the universe, is always in a state of equilibrium. When something goes negative, another goes positive. The share market fall results in larger amount of money in the bank deposit; share market players lose but bank account holders win. In fact, this is the fundamental principle of accounting rule.
Borrowers cannot keep on borrowing, because the lenders cannot even get their interests from the borrowers let alone the principal. Germans cannot just handout money to the Greeks who work shorter hours, and many live on social welfare enjoying the Mediterranean sun. Young Greeks of today suffer because the romantic, casual and relaxed life style enjoyed by forebears of yesteryears did not create solid foundation for employment.
European financial crisis is analogous to a fast descending hot air balloon. It has reached a stage that almost everything, except the balloonists, in the balloon basket has to be thrown overboard to keep the balloon afloat. If the rest of European countries go down with Greece, no one is wiser, and even if with the best intention, Greece will not survive, because the rest also become exhausted in energy and fund.
As what the former Singapore Prime Minister Mr Lee Kwan Yew once said, “give a beggar a gold coin, he will ask for a second one.”
Commenting on "Shares lose $20b as sell-off continues"
http://www.theage.com.au/business/markets/shares-lose-20b-as-selloff-continues-20111003-1l4ai.html
We have not seen the last of the fall yet. ASX ordinary index will fall to 3500 within the next few days. While we need to live more optimistically, or else life is not worth living, we also need to be realistic and live within our means. Everything, in the universe, is always in a state of equilibrium. When something goes negative, another goes positive. The share market fall results in larger amount of money in the bank deposit; share market players lose but bank account holders win. In fact, this is the fundamental principle of accounting rule.
Borrowers cannot keep on borrowing, because the lenders cannot even get their interests from the borrowers let alone the principal. Germans cannot just handout money to the Greeks who work shorter hours, and many live on social welfare enjoying the Mediterranean sun. Young Greeks of today suffer because the romantic, casual and relaxed life style enjoyed by forebears of yesteryears did not create solid foundation for employment.
European financial crisis is analogous to a fast descending hot air balloon. It has reached a stage that almost everything, except the balloonists, in the balloon basket has to be thrown overboard to keep the balloon afloat. If the rest of European countries go down with Greece, no one is wiser, and even if with the best intention, Greece will not survive, because the rest also become exhausted in energy and fund.
As what the former Singapore Prime Minister Mr Lee Kwan Yew once said, “give a beggar a gold coin, he will ask for a second one.”
