Archive for October, 2008

And now?

October 27, 2008

After dictatorship, socialism, fascism and capitalism come..?

When Steve Forbes put himself on the front cover of Forbes magazine and speak about the capitalism as the healer of…capitalism it may appear as a little bit desperate in times like these.

But Mr. Forbes has a hands on approach to a problem that seems a mystery to most people. One of course get a little bit puzzled when prominent individuals like Alan Greenspan says “I was chocked”, a man that for ten years was by no competition the single individual whose words probably was most carefully analyzed not only in USA but in most parts of the world, between 1987 and 2006, a time during which he was Chairman of Fed in USA.

People like Alan Greenspan are not supposed to say things like “I was chocked”. They are supposed to explain what is going on and then solve the problem. But until now, no sign of anyone does that.

The advocates as well as the critics are stunningly quiet. It is quiet, which by all a standards are odd. In every tiny vacuum whatever discipline somebody use to take advantage of the situation. But no and that is the most scary part of the financial crisis. Nobody seems to have a clue of what is going on and how it is going to end. The 18th of January this year Peter Malmqvist one of Sweden´s most respected financial analysts first warned about significantly a plus minus zero result for 2008, In beginning of the week starting with October 13th he said “The Stock market will turn upwards 30 percent”. Four days later he changed his prognosis to 10-20 percent and since then the Swedish Stock Market has slumped by almost thirteen percent to minus 48,8 this year.

Malmqvist is in good company. Despite all computerized charts and loads of statistics nobody can tell were this is going to end and now is the time to take action in order to get any kind of advantage on the market.

In my view it is not only the financial markets that are under siege, it is the entire world economy as we know it.

I have no doubt that economist all over the globe try desperately to find a cure for the present disaster but after more than a year of clear signs we have not even seen anything that could even remind about something that could be regarded as a sketch or even a vision of what is needed for the future.

My brother in laws daughter is six years old. Last week she came to her dad saying:

-Dad, there are some people dressing up like Santa. I think that´s scary!

I agree.