Aussies warned: Global economic crisis will 'spare no-one'

• World Bank warns world faces deeper crisis than GFC
• Says "an escalation of the crisis would spare no-one"
• Commonwealth Bank doubles down on borrowers

THE global economy is veering towards a recession potentially more debilitating than the financial crisis, the World Bank has warned.

And the Asian growth nations fuelling Australia's prosperity could be dragged into the mire, the authority says, in a move that would have severe ramifications for the domestic economy, theHerald Sun reported.

The World Bank yesterday slashed its forecast for global growth in 2012 and 2013.

Economists labelled the move a "wake-up call" for nations wrestling with chronic debt woes.

The Washington-based institution says that after six months of slowing economic activity, growth in the global economy is likely to clock in at 2.5 per cent in 2012 and 3.1 per cent in 2013.

Just six months ago it was forecasting 3.6 per cent growth both years.

"An escalation of the crisis would spare no-one," World Bank global macroeconomics manager Andrew Burns said.

"Developed and developing country growth rates could fall by as much or more than in 2008-09. The world could be thrown into a recession as large or even larger.

http://www.couriermail.com.au/news/world-bank-warns-of-deeper-crisis-than-the-global-financial-crisis/story-e6freon6-1226247972536

Thanks Shaza

Mining service groups are starting to rise from ashes of GFC

DURING the global financial crisis, the shares of Brisbane-based mining services groups Sedgman and Ausenco were hammered.

Those who bought in at their nadir in early 2009 have done OK since, although Ausenco shares took another sharp downturn mid-2010 before they resumed their recovery.

The two companies have recovered as resource project development across the globe has got back into top gear.

And with brownfields and greenfields exploration strengthening, their pipelines of future projects should continue, at least medium term, to fill.

Many investors who bought into the groups' floats in late 2006, after which the shares soared Ausenco's spectacularly might remain a little disappointed.

Sedgman's shares floated in mid-2006 at $1 each and rose to $3.95 by mid-2007 and Ausenco's, also sold to the public at $1 and listed on the Australian Securities Exchange in June 2006, rose to a staggering $16-plus within 18 months.

With hindsight, those prices were spectacular examples of the pre-GFC sharemarket bubble and people who didn't take some profits and put them in the bank having seen Ausenco's shares rise 16-fold should perhaps only blame themselves that they're not richer.

It may be a long time before either company returns to those giddy heights, if Ausenco ever does.

But both Sedgman and Ausenco are looking at significantly rising revenues, having rebuilt their order books as projects, put on hold when the GFC hit the world's major miners, have been reactivated.

RBS Morgans' head of research Roger Leaning told The Courier-Mail last week: "Both companies look set for strong growth.

"Ausenco has diversified both by type of work and geographically, and Sedgman is also looking strong.

"Both are back to pre-GFC levels of billable work, suggesting there'll be a lot of growth if Europe's woes don't tip the world economy into recession."

Leaning points to the expansion of other industry service companies, such as Campbell Brothers (in mineral analysis) and a string of drilling companies, saying: "You can look at strength along the whole of the food chain."

http://www.couriermail.com.au/business/mining-service-groups-are-starting-to-rise-from-ashes-of-gfc/story-fnbdkrr9-1226225720233

Technician John Bollinger: “Putting Money Into Bonds Will Be Deeply Regretted”

Also Jim’s Big Picture: “What if it was Thanksgiving and you’re the turkey?” and Ryan Puplava on this week’s market

This is a bio and a link below to an audio commentary QB

Jim welcomes famed technician John Bollinger this week to discuss, among other subjects, the rally no one believes in. In Jim’s first Big Picture topic, "What if it was Thanksgiving and you’re the turkey?" he looks at the rising cost of food. Ryan Puplava also wraps up this week in the markets.

Ryan joined PFS Group in 1995. He holds a B.S. in Business Administration/Finance from San Diego State University. His professional designations include FINRA Series 4, Series 7, and Series 66 Uniform Combined State Law Exam. He earned the Chartered Market Technician's designation in 2007. Mr. Puplava is Senior Trading Manager and works closely with Jim Puplava on PFS Group's Growth investment objective. He also contributes a monthly Market Observation to Financial Sense and co-authors In the Know—a weekly communication for Jim Puplava's clients only—with other members of the trading staff.

John Bollinger is the president and founder of Bollinger Capital Management, an investment management company that provides technically-driven money management services. Bollinger Capital Management also develops and provides proprietary research for institutions and individuals. He is perhaps best known to the public as the creator of Bollinger Bands, which he developed in the mid ‘80s. Over the past two decades, investors and traders worldwide have come to view Bollinger Bands as a most reliable tool for assessing expected price action and the bands are featured on most financial charting software and websites.

http://www.financialsense.com/financial-sense-newshour/big-picture/2012/01/14/01/ryan-puplava-john-bollinger/putting-money-into-bonds-will-be-deeply-regretted