2009 Gloom & Doom Update: Protests in Germany and Bosnia

As the situation gets worse in Europe, with unemployment rates reaching new highs, the social unrest (see previous posts) is spreading. Germany is the latest in the string of countries that is seeing protests show up. This is important to note as Germany was one of the first countries that had been working on a stimulus plan and has tried hard to off-set the anticipated problems.

Problems in Bosnia are less surprising as this was not a strong economy to start off with. Given their political precariousness (two regional, uncoordinated governments), this is a country that is possibly in line for a change in administration in the style of Iceland or Latvia.

What to watch out for in the upcoming weeks: collapse of airlines. Several airlines are already facing problems as fewer people are flying (Singapore Air, Lufthansa, Swiss Airlines etc)- let us see when some of the weaker players are pushed out of the market or will need to be bailed out.

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2009 Gloom & Doom Update: Outlook Playing Out- Iceland Govt Collapse

Remember my previous post on what 2009 will look like?  One of the things I had mentioned was growing unrest in Europe.

Yesterday, Iceland’s government collapsed and there are demonstrations across Europe. Spain, Greece, Lithuania, Latvia and Iceland have all seen protests. France, Germany and United Kingdom have been spared the demonstrations- they are also countries that have invested the most in stimulus packages.

As a reminder of what I had said:

2009 will be a year of despair for many.

The upcoming year is going to be hard on many people. The global financial situation is going to get worse before it gets better. SAVE! SAVE! SAVE! Everything you save will be needed later. If you have a miserable job, don’t quit yet. If you do not have a job, grab what you can. It will be worse than many of us remember. None of the indicators are pointing towards anything good.

Expect an escalation in crimes like theft. Expect an increase in riots and protests in various Asian hotspots. Expect growing unrest in Europe. North American social welfare systems will get taxed to their breaking point.

Cracks will emerge that will over the next 5 years result in the changing of some national boundaries.

More of these will be playing out as the year progresses.