OK, the INAUGURAL POST!!! Let’s discuss… the world markets and LENDING.

For those of you with short attention spans, just skip to the SUMMARY at the end. I think I will try to maintain this format in future posts too.

OK. Let's start my blog then.

First, off, let's look at the Great Depression.
http://en.wikipedia.org/wiki/Great_Depression
We can see from here that everyone blames CREDIT FREEZES and lack of EMERGENCY LENDING by the FED for the disasterous recession. It is extremely obvious that the international banks have all agreed that they are going to focus on increasing lending, in order to avoid a second Great Depression. They probably have some textbook gameplan just for such and such an event, actually.
WRONG, GUYS.
Yeah, it might seem really arrogant of me to just contradict all these so called financial experts. But let me point out that these current steps are not something they've really thought out clearly. They are just trying out what they didn't get a chance to do back in 1929.
Now. WHY won't it work?
It's all really simple, if you sit down and think about it.
What is the FIRST step to surviving a recession, for an individual? Basically, what should an individual do to maximise his chances of seeing it through and eventually being on strong grounds when the economy eventually does clear up?
First, you need a stable job. (so Kennedy's nonsense about paying people to dig holes and others to fill them in doesn't work. You need to provide JOB SECURITY too.)
2nd, you need to reduce your debts! This is elementary school people. Those who are debt free will be in a MUCH stronger position than those who are heavily in debt. BUT... the governments are trying to encourage increased borrowing! ... Actually, anyone with eyes can see that the current corporate bailout plan is going balls up. Seriously people, it is a simple simple basic financial management principle: you should borrow at 3% in order to generate 4% returns. You don't borrow at 3% when you are expecting to generate -2% returns!
Do these stupid governments think that being able to put themselves deeply into debt will increase/ preserve consumer spending? ... obviously, these financial whizs and government folk have not spent enough time BEING POOR. For those who are familiar with the feeling, you will realise that being jobless, your home and in fact your total networth just dropped in half, your government is going BADLY into debt and is spending taxpayer money bailing out corporations... enthusiasm to spend money? ... are you MAD???
HOWEVER... I am very much in favor of repacking current debt. It makes a LOT of sense for those who have credit card debts to be able to pay those off and shift them into mortage debts. Basically, you would want to reduce monthly debt payments by shifting from higher interest to lower interest charges.
UNFORTUNATLY for the banks... this means that bailout of the banking industry is a failed enterprise from the get go. The will be banks runs. There SHOULD be bank runs. ... Why? Well... it's a simple next step extrapolation:
The FED has reduced their interest rates to a mere 1%. Even a really stupid person will look at his bank savings account gaining a lousy 2%, and look at his mortage at 3 times that, 6%, and realise that they should really break those fixed deposits... This is even more so for credit cards. And those who do not come to this conclusion themselves, if they go to a financial planner, the financial planner would definitely tell them this. It would be STUPID to have $10,000 earning you $20 a month interest in savings account, and at the same time you have a $10,000 credit card debt costing you $200 a month.
SO. Conclusion. America is bailing out banks with it's left hand. The world is creating bank runs with the right hand. Reaaaaaaal smart. You morons.
So, how long will this recession last? It took a world war and wartime industry to end the last Great Depression. Will it get that bad? Who knows. Ok. More realistically? This recession will end when consumer spending increases. Consumer spending will increase when consumer INCOME increases. UNFORTUNATLY, the stupid world governments (except for China, who is being applauded by everyone, despite being the odd man out... which should say a lot! China=smart, the rest of you=stupid. And I'm glad all of you nations recognise this and say so too), are totally ignoring RAISING GDP. They are not looking at helping out the people by creating jobs and job security and by making sure that the bottom 30% of the population will be ok. NO. They stupid Americans are bailing out the top 0.01% of their citizens!!! Who are throwing parties, BTW. Look at AIG. In AIG's case, they got caught, so they tried making it SECRET parties. Nonetheless, they got caught again. People are... *angry*...
You know what the big difference here is? ... I am ashamed to admit it, since I am an avowed capitalist. But... seriously there is something to be said about communism... they really make it a priority to protect the poor, not the super ultra rich and powerful! (though the controlled economies tend to fail spectacularly at the slightest hint of corruption since the system is non-self regulartory... communism means there is no policeman to catch the corrupt policeman)

SUMMARY:
Look, when the citizens and corporations are losing income/ have NO income/ have LOSSES... and they also have outstanding debts, which are causing them to suffer... you do NOT throw even MORE debt on them! Repacking debt is a good idea though. Not like AIG's case, however, since that is essentially not repacking debt but is a DONATION from TAXPAYERS to AIG. You should be concentrating on REDUCING expenses, and INCREASING revenue. Very basic. Very simple. So, do it, world governments.
To investors and shareholders: The governments are making an even bigger mess of things. STAY OUT of the market. In fact, I would recommend that you take your investments, your 401k plan, your savings accounts in banks which are rated C or lower, withdraw them all. and put them in banks with guarantees, which are rated as A to A+. Trust me even the A rated banks are not as safe as they might seem. Also, get out of banks that just bought over a failing bank. TRUST ME, there is a very good reason why those banks failed, they have some pretty toxic assets there, you do NOT want to one day read headlines that consumers had lost faith in the bank you are using and the bank has policemen outside refusing to allow customers to withdraw their deposits. Preventation is better than cure. Seriously, why not just put your money in the most secure bank possible? Do you REALLY love your current bank so much?