Daily Update - Rotten Legacy

[Gambles]

Dear all,

Please find below the latest daily update from MBMG International.

The problem with western governments, according to GMA’s John Sheehan, is that they’re in denial “Distressed debt is my metier-I know what it’s generally worth because I spent several years buying and selling it. I estimate that what the USA paid almost 100 cents in the Dollar for is really worth less than 20 cents. It was done to keep the inter-bank markets liquid when my former employer, Lehman Brothers, failed. Right now USG agencies have acquired or guaranteed around US$ 5 trillion of debt assets (out of a total market of less than $9 trillion) but in reality these may be worth less than $ 1 trillion. To avoid a $4 trillion loss, the Fed and the Treasury Department are having to plan to hold these until maturity. That won’t avoid the loss but it will mean that it doesn’t come out for many years. Meanwhile in the UK Northern Rock chief executive Gary Hoffman told MPs that it could take up to 20 years to clear “bad bank” Northern Rock Asset Management’s mortgage book and repay the Government loan. That’s the legacy that’s been left for the next generation it will take 2 decades to repair the damage done by sub-prime excesses.

Once again, very best regards,

MBMG International

Please Note: While every effort has been made to ensure that the information contained herein is correct, MBMG International cannot be held responsible for any errors that may occur. The views of the contributors may not necessarily reflect the house view of MBMG International. Views and opinions expressed herein may change with market conditions and should not be used in isolation.

Edited February 15, 2010 by Gambles

[kiwiinasia]

So...?

SELL EVERYTHING!

MOVE IN TO A CAVE!

BUY DIAMONDS!

Oh and live a crappy life.

[Latindancer]

We need to change the entire economic system. Growth Economics, which is what we practise now, stinks. It depends on constant growth, which was ok a few years ago, but now our natural resources are suffering badly. And the constant construction of new houses (with our burgeoning population) is encroaching on more and more spare land, driving more and more species to the verge of extinction. These are not empty words, but something I see right in front of me whenever I go back to Australia. And the same thing is happening in many other countries. I am so disgusted with the human race....

[Gambles]

We need to change the entire economic system. Growth Economics, which is what we practise now, stinks. It depends on constant growth, which was ok a few years ago, but now our natural resources are suffering badly. And the constant construction of new houses (with our burgeoning population) is encroaching on more and more spare land, driving more and more species to the verge of extinction. These are not empty words, but something I see right in front of me whenever I go back to Australia. And the same thing is happening in many other countries. I am so disgusted with the human race....

The last few decades have been characterised by greed and selfishness and by instant gratification financed by burgeoning debt. This could have ended in either of 2 ways

- a sharp shock and a return to earlier values as embodied by restitution of the banking system (i.e. letting the bad banks around the world fail to fix the system)

- a long, slow painful attempt to deny the problems staring us in the face.

So far the world's taken the second choice. In years to come, there'll eventually be a slow realization of the problems and at that point the economy of the modern world can finally start to heal.

[samuibeachcomber]

every lie told us by the global players and the politicians is now coming undone and being exposed for the sham that it is and in many ways we have the internet to thank for this increased awareness.The old economic order is being preserved by printing more money but it has to come unstuck sooner or later with the result being hyper inflation.

i agree with other comments that you cannot sustain continued economic growth,there has to be a downturn to every upturn. it makes sense to save at least 10% of money earnt for a"RAINYDAY" but we have been told not to worry just put it on credit and let your property's increased value take care of what you cannot afford.The sh-t will hit the fan,its just that the day has been put on hold.

The financial scam of 2008 has woken everyone up to the lies,and has had a far greater impact than 9/11.personally find it very refreshing

[Gambles]

<A name=OLE_LINK2>Dear all,

Please find below the latest daily update from MBMG International.http://' target="_blank">

The Wall Street Journal’s Gregory Zuckerman recently observed that we are in an age of bubbles, citing housing, energy, Asian currencies and technology stocks as examples of bubbles the market has experienced over the past decade and noted that short-termism is driving a dangerous approach to investing

"The next bubble may be emerging markets, Brazil, China, or pockets of real estate in Asia or Australia Everyone are worried about the next investor. There is an incentive to increasingly pile on trades and now it is much easier to express trades using ETFs, synthetic CDS and other types of derivatives. Managers today are fully invested and talking about adding leverage, but they don't really believe in the long term nature of these investments. It might work out in the short term but long term you wonder if they can all get out."

I’ll tell you now Greg, they can’t - and with the volatility and the risk in markets a lot of people are going to get squashed picking up nickels in front of Bulldozers when the big crowd try to crush towards the small exit doors. This is a year when more than ever there is a real premium for expertise and knowhow. Second best and amateur investors are cannon fodder if they can’t expect the unexpected.

Enjoy your day!

Once again, very best regards,

MBMG International

Please Note: While every effort has been made to ensure that the information contained herein is correct, MBMG International cannot be held responsible for any errors that may occur. The views of the contributors may not necessarily reflect the house view of MBMG International. Views and opinions expressed herein may change with market conditions and should not be used in isolation.

[Gambles]

Dear all,

Please find below the latest daily update from MBMG International.

Jeremy Charlesworth, from Moonraker Fund Management recently encouraged investors “to put their eggs in lots of baskets because not every investment might hatch returns. In addition, diversification among asset classes helps reduce the risk of holding the wrong asset class at any given time”.

Jeremy further added during the investment events hosted by MBMG Group, “markets are very tricky so investors cannot afford to be rigid, investors need to be quick and nimble in jumping in and out of markets “. Wise words indeed, if ever there was a time that expertise and advice to clients is required from top fund managers, this is the time.

Being ready and able to change direction quickly during a year of uncertainty has never been more necessary, further more having experienced advisors and being able to have access to top performing fund managers is vital in these challenging times.

This very much ties in with our main concerns for 2010

1) Beware of Bob (bolts from the Blue)

2) The way to deal with Bob is Jack – i.e. be nimble and be quick in your investments approach

3) Don’t try to do this at home – the added value of expertise has never been greater.

The opportunities created by high quality hedge funds will be an interesting area in 2010. Hedge funds now more than ever seem to be attracting the attention of not only investors but also the television media and financial broadsheets as well. Perhaps it’s the hedge fund mantra of “absolute returns” that is turning heads and making people listen and take note. The original aim of hedge funds was to make money in good times and the bad times. The methods of hedge funds to many remain a mystery. Industry expert Phil Crotty of New Zealand Asset Management (NZAM) will peel back some of the layers of mystery to explain the nature of hedge fund investing and in particular long/short equity hedge funds at a lunch at the Grand Millennium Hotel on February 26^th at 12:00, co-hosted by the Australian and New Zealand Chambers of Commerce. Guests will be invited to participate in an open discussion. Let us know if you’d like to receive an invitation to attend as numbers are strictly limited.

Enjoy your day!

Once again, very best regards,

MBMG International

Please Note: While every effort has been made to ensure that the information contained herein is correct, MBMG International cannot be held responsible for any errors that may occur. The views of the contributors may not necessarily reflect the house view of MBMG International. Views and opinions expressed herein may change with market conditions and should not be used in isolation.