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Tom Winnifrith leap year Bearcast: the spectre of mass unemployment & a POS who deserves it, the liar Lenigas

By Tom Winnifrith

29 February 2016 08:27

Warning: The podcast contains both bad language and also a lot of abuse directed at Australians.I start with the guys who run Slater & Gordon and accept that they can't be thrown to saltwater crocs who have not eaten since Christmas. shame. Its all down to geography. I then move onto the liar David Lenigas, Rare Earth Minerals (REM) and LGO Energy (LGO). Then to Bingo Bango Bongo (BGO) WTF is going on? Petroceltic (PCI) - the new Afren in every respect - and then to 4D Pharma (DDDD), Finally I dwell on the spectre of mass unemployment in certain sectors in China, the UK and the USA and what it means.

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Comments

BlueFrew

29 February 2016, 09:37

I think we have to look at the role that QE and record low interest rates have here. Bubbletastic house prices are the most obvious results, but look beyond them. In many industries money has been thrown at increasing capacity. This excess capacity just drives the price down until the weak go bust, as Petroceltic (I’m short) are showing.

The problem is that most of the central banks have been magicking money into existence. There is so much over capacity and so much mis-allocated capital that the banks are once again in trouble. We’ve seen that the banks are often lucky to get 15c in the dollar back on their O&G loans. That will be repeated in other sectors and with many other companies. Unemployment rising in that scenario is inevitable.

This time the nettle has to be grasped. The banks need to be allowed to go bust. Capacity has to be removed from the economy. Useless companies which don’t make money need to go bust and companies that will make money be allowed to replace them. If the cost of shelter reduced and people didn’t have the banks leeching on their earnings, perhaps we could all start doing a little bit less work every week.
Drunken Sailor

29 February 2016, 10:18

Wedge Issue (Formerly known as Free Speech and Liberty Pizza, Formerly known as Real Man Pizza) Fucked! get out now – oh you already did.
Peter

29 February 2016, 15:56

Did i miss the bit about 4D pharma or wasnt it there?