What a year 2010 has been! The sheer dramatics all over the financial world were breathtaking at times, and surely it was a remarkable year announcing a remarkable decade. But where do we go from here? Let’s recap the most important issues on BraveNewFinance in 2010 and see where they are headed in 2011 and the new decade!
One of the most intriguing topics certainly was the Euro – as the story of its decline from “the new world currency” to “worse off than the dollar” unraveled, we kept track of it closely. Read the whole story from plummeting bond prices covered by Rudi to thoughts about reducing the Euro zone to stable economies by Kizzel and possibilities of killing the Euro by Vivipre!
Outlook: The recent auction of Portugal’s bonds has gone well, says author “Aktiencheck” from wallstreet-online.de, but as Rudi points out, new members like Estonia and a possible renewed economic downturn will continue to put a strain on the Euro.
Just as nerve-racking was the fear of a global currency war – Stuerzele covered a lot of the news, reporting on St.Florians policies and the constant printing of money, whilst Vivipre assessed the strength of the Yuan. Kizzel and Bravenewloock on the other hand questioned US currency policies and compiled views and criticisms.
Outlook: The headlines have subsided for now, but the main problem is still very much there, points out financial blogger Eric Gardner. He reasons that despite a break prompted by a moderate boom in world economics, the lack of proper institutions and a “Me first”-attitude of state leaders leaves this issue boiling under the surface. Interestingly, there are concerns that the 600bn $ bailout in the US may now actually harm the economy – check out Jeannine Aversa’s surprising take on that issue! And don’t miss Stuerzele’s in-depth analysis of this topic next week!
The third main issue on BraveNewFinance was about what was actually learned after the Lehman meltdown and the following global crisis – according to the sheer number of bubbles we singled out as close-to-bursting, one could presume that the learning effect was very marginal!
First, Bravenewloock stumbled upon a list of inflating bubbles compiled by renowned blogger Charles Wallace. Olexa took a closer look at impending commodity upheavals and the problems surrounding global equity rules for banks, whereas Kizzel warned about China’s overheated real estate market.
Outlook: These bubbles are still very much floating around, and might very much be worsened by a superficial belief in automatic economic recovery, as Mary Bottari warns in the Huffington Post. Next week, I will post an update on those “floaters”, and share some findings about global risk maps for 2011.
Concluding, we have to state that we are by no means out of trouble yet (have a look at Sara Murray’s prediction of a relapse into crisis)! BraveNewFinance has developed into a compendium of the most pressing and influential economic issues, check out the archives for a complete coverage! We most certainly have a most exciting decade ahead of us, and BraveNewFinance will keep you posted on things as they progress!