Friday, December 24, 2010

Bankruptcy/Default/Insolvency: The Economic Theme for 2011

The Economic Theme for 2011 will be Sovereign/State/Cities Bankruptcy/Default/Insolvency, continuing with Sovereign default in Europe that started with the collapse of Iceland, Greece and now Ireland. The next European countries in line for collapse are Portugal, Belgium, Spain and Italy.

Also expected to be occurring in 2011 will be the collapse of the States and Cities in the US, which started with Prichard, Alabama.

Alabama Town’s Failed Pension Is a Warning as to what is coming in 2011.

Prichard, Ala., presents a worst case for public pension funds: It stopped sending checks in 200

Here is a link to a full article by New York Times.

http://www.nytimes.com/2010/12/23/business/23prichard.html?_r=2&emc=eta1

In a CBS 60-Minute interview, Meredith Whitney said that hundreds of municipalities in the US may go bankrupt and default on their bond within 12 month.

Our Economic Analysis

Then integrating it with 18-year Real Estate and Infastructure Kuznets Cycle, the 8-year Overall-business Juglar Cycle and the 4-year Election and Stock Market Kitchin Cycle.

Together they provide the basis to every facet of our analysis, allowing us to inter-relate and diversify our investment across multiple markets and asset classes simultaneously.

Our economic analysis combines the fundamental and technical aspect within the context of the above cycles to develop and refine our investment strategies.