The Recession & Libya

Hi Sal.

Interesting comment about the timing due to the recession, and exactly what I want an objective in formed view.

Recessions come and go, the first one I knew of was at the end of the 80’s I remember it well as it nearly split my parents up, the banks stopped lending me money and a friend’s house went into negative equity.

In 1999 just before I moved to Cape Town on the 2 hour train ride to the recording studio I read the FT every day and after predicting a sudden growth in a Minmet, my parents and my ex wife (who has a double first from Cambridge) both offered me money to invest, with the FTSE at about 6.600 I informed them that I could see a crash and I would not invest. It crashed about 2 months later.

Now where I was wrong, was that my prediction was more based on the overvaluation of property than stocks, but property did not go down despite the mini recession.

Property just kept going up, probably due to the excessive lending, and eventually when it broke it broke 2 recessions and adjustment in one.

Well we are just about at the end of a double dip now and there is room for growth, so actually it’s the perfect time, as the conglomerate will take the glory of ending the recession.

Greece has been picked for deliberate reasons, it was the first European economy to crumble, it is centrally located, has glorious history and excellent coast line. I also have a very powerful Greek singer who can be called upon.

This said, Greece in not essential, Portugal, Spain and Ireland are also good options.

I’m certain I can get pledges from 3 huge companies of about $4B a year for 16 years.

$12B minimum for 16 troubled economies, the first 4 will be publicly named.

My current list

1. Greece
2. Libya, Zimbabwe, South Africa, Mozambique or Malawi
3. Spain, Portugal or Ireland
4. Libya, Zimbabwe, South Africa, Mozambique or Malawi

Before this happens, we will need the Cease Fire in Libya. In return for our proposal to raise money for them and build them a great City where Gadaffi can live, he can have a say in how the money raised is distributed, which will make him more powerful than government, so he has an option to bow down without loosing face. I’d like some take advises on the tribal situation.

After it is announced the Cease Fire is due to an economic bailout by a coalition of the world richest companies, the Libyans’ will have hope, in the same way the South African had hope after apartide, not that they are much better off due to the Animal Farm effects of BEE (Black economic empowerment) But hope never the less stopped South Africa from becoming the next Zimbabwe.
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