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The Financial Crisis “Round Two” Survival Guide
The following is an excerpt from our FREE
report detailing how to prepare one’s portfolio for the second round of the
financial crisis.
This bear
market is nowhere near over.
Since its
March 10 low of 666 in 2009, the S&P 500 rally has been almost unstoppable.
Pundits and media commentators alike have taken this to mean that the bear
market is over and that stocks should once again be the primary asset class for
investors.
None of them
knows what they’re talking about.
Over the
last 30 years, the US has built up record debts on a personal, state, and
national level. Consumers thought they were financially stable so long as they
could cover the interest payments on their credit cards, states created program
after program few if any of which they could afford, and the Federal Government
issued $30-50 trillion in debt and liabilities (counting Social Security and
Medicare).
This all
came to a screeching halt when the housing bubble (arguably the biggest debt bubble
in history) imploded in 2007.
Since that time, stocks have staged one of their worst years on record
(2008), one in five us mortgages has fallen underwater (meaning the mortgage
loan is worth more than the home itself), and some trillions in US household
wealth has evaporated.
These issues
seem to be distinct, but in reality they all stem from a debt problem. And as
you know, there is only one legitimate way to deal with a debt problem:
Pay it off.
However,
instead of doing this, the Feds (the Federal Reserve, Treasury Dept, etc.) have
been producing EVEN MORE DEBT. Here’s a brief recap of their moves thus far:
- The Federal Reserve cuts interest
rates from 5.25-0.25% (Sept ’07-today) - The Bear Stearns deal/ Fed buys $30
billion in junk mortgages (March ’08) - The Fed opens various lending windows
to investment banks (March ’08) - The SEC proposes banning short-selling
on financial stocks (July ’08) - The Treasury buys Fannie/Freddie for
$400 billion (Sept ’08) - The Fed takes over AIG for $85 billion
(Sept ’08) - The Fed doles out $25 billion for the
auto makers (Sept ’08) - The Feds’ $700 billion Troubled Assets
Relief Program (TARP) (Oct ’08) - The Fed buys commercial paper (non-bank
debt) from non-financials (Oct ’08) - The Fed offers $540 billion to
backstop money market funds (Oct ’08) - The Feds backstops up to $280 billion
of Citigroup’s liabilities (Oct ’08). - Another $40 billion to AIG (Nov ’08)
- The Fed backstops up $140 billion of
Bank of America’s liabilities (Jan ’09) - Obama’s $787 Billion Stimulus (Jan ’09)
- The Fed’s $300 billion Quantitative
Easing Program (Mar ’09) - The Fed buying $1.25 trillion in
agency mortgage backed securities (Mar ’09-’10) - The Fed buying $200 billion in agency
debt (Mar ’09-’10) - Cash for Clunkers I & II
(July-August ’09) - QE lite (August ’10)
- QE 2 (November ’10)
And that’s a
BRIEF recap (I’m sure I left something out).
In a
nutshell, The Feds have tried to combat a debt problem by ISSUING MORE DEBT.
They’re pumping trillions of dollars into the financial system, trying to prop
Wall Street and the stock market. They’ve managed to kick off a rally in
stocks…
But they
HAVE NOT ADDRESSED THE FUNDAMENTAL ISSUES PLAGUING THE FINANCIAL MARKET.
Stocks are
headed for another Crash, possibly as bad as the one we saw in October-November
2008. As you know, that Crash wiped out $11 trillion in household wealth in a
matter of weeks. There’s no telling the damage this Second Round will cause.
The Feds
have thrown everything they’ve got (including the kitchen sink) at the
financial crisis… and things are fundamentally no better than they were before:
most major banks are insolvent, one in five US mortgages is underwater, and the
stock market is being largely propped up by in-house trading from a few key
players (Goldman Sachs, UBS, etc).
Make no
mistake, we are rapidly headed for ugly times in the financial markets. The
time to prepare yourself is NOW!
To continue
with the rest of our FREE Financial
Crisis “Round Two” Survival Kit, swing by http://www.gainspainscapital.com
and click on FREE REPORTS. This 17-page report details not only what’s likely
to come, but how to prepare for it. And it’s all 100% FREE.
Good
Investing!
Graham
Summers
- advertisements -
Well I certainly can appreciate your attitudes toward diamonds...you are correct. If you are in the market for very high end colored stones let me know. i am a high end cutter. You will know what you are getting, no irradiated stones, no diffusion sapphires. I get the rough, i do all the cutting. Give your sweetie some big carats..and your carrot will never be the same.
bought a pound of walnuts (Diamond brand) yesterday. $7 That will be the last for the year. survival mode
Hmmm.
The lobster eating fucks in Davos have released a consensus statement saying they will do everything they can to avoid deflation. so i guess its whether you believe in their firepower to cause inflation, because they all want it.
Deflation as i see it is not a bad thing for the man on the street and the arguments about people putting purchases off waiting for things to get cheaper is crap.
So - more QE from everywhere, especially if another crash.... man my head hurts...
C'mon folks - don't worry about the US economy - we'll just go and start a war somewhere and get the good ole' guns 'n' butter economy going again! It sure worked wonders in WWI and WWII didn't it?
The problem is the debt-mongers have fallen for their own bullcrap that credit = money = debt.
Idiots.
it's the biggest debt bubble in history so good to hear Deflation talk because the last time anything this size imploded it was deflation 'til you drop (1929)... can't see inflation despite the Feds printing, it ain't hitting Main Str so it won't be Zimbabwe ...just passed 'euphoria' stage with this mega-long, mega-weak rally, now i've got a chills like this could be the big one about to drop... check parachute
The Associated Press reported just tonight, that tomorrow is the day to start investing in the Dow Jones!!!
http://finance.yahoo.com/news/History-suggests-time-is-apf-2432945502.html?x=0
WHAT A JOKE!!! I sold out on Friday, and am going to be shorting everything in sight come tomorrow morning!!!
Well it is good to see some real traders back. Maybe the troll isnt alone after all. There are a few out there willing to consider that sentiment extremes are often a harbinger of inflection points. I am beginning to think an inflection point is near and there are several potential macro events out there to serve as a catalyst. In fact i see norhing on the horizon to confirm further inflationary expectations. I see evidence of demand destruction and fear and.the housing market may take a second leg down. You better rrspect the deflation monster. It is much bigger than we may think and sucking on Ben's ugly man tit may not be very appetizing but the whole thing goes down including gold and commodities if tight money policies ensue.
"The more we spend, the richer we are!" -- Joe Biden, financial genius, Vice President, USA
And when the market does crash, I wonder how many will realize that it was a planned event?
No need to lie, just deny deny deny!
In the inflation, commodities have value.
In the deflation, not so much. I have watched the Bernank stop at nothing. QE2 cannot stop without intervention. Because the moment this market goes off that life support mechanism, the patient flatlines.
So far the inflation is winning.
""So far the inflation is winning.""
...At least Bejing China has no food price inflation problem...bugs, rats, roasted silkworms...
http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/01/well-citizens-of-bejing-will-never-go.html
diamonds no way they are all different sizes and clarities no way to tell worth plus that is a manipulated market.
Diamonds are the place to invest GIA certified J-K color or better,SI1clarity or better 3ct or larger rbc, emerald cut, cushion brilliant, ovals, only buy from a professional who stocks their own inventory so they can sell you what they have already purchased with their own money. No fluorescence or heavy graining. Prices are going up globably! DW
Um, yeah. Troll, I name thee.
Diamonds??? And people think silver is manipulated. What the Hunt brothers failed to do for silver DeBeers accomplished long ago for diamonds. Diamonds only have a reasonable market as industrial abrasives.
You are a shill.. The worst of the worst, I could get an EGL cert on dogshit SI1-2, now GIA they have integrity, they would call the SI2 an IL1 and only rape you with the forked cock of Satan otherwise known as the Debeers cartel half as long.. Among other licensure, GIA trained guy here...
Diamonds are like a new car: Drive it off the lot and the dealer will buy it back for 50% of your purchase price if you drive it around the block. Buy any diamond and take it to sell to the jeweler next door if you really want to know how crappy it is.
Diamonds? You must be joking. Why would you "invest" in something that only sell for about 20% of your purchase price. ( unless, of course, you are selling to someone dumb enough to buy )
Diamonds are not nearly as rare as Debeers pretends they are.
Fuck your DeBeers cartel bullshit...we're interested in commodities that actually are rare.
Everybody expects inflation. That is the best argument against it that this trader knows of.
The "housing bubble" was not the cause of the crash. The cause of the crash was when interest rates started to rise. After 30 years of declining interest rates, everybody was on the wrong side of the trade.
And the reason interest rates started to rise was due to higher energy costs.
Watch the long bonds. They are approaching the same point they were back then. There is a huge head and shoulders pattern trying to form in bonds. Like there was back then. The prospect of rapidly rising rates tends to be deflationary. We are still unwinding 30 years of mindset.....
blah,blah, blah.....
gh
It's pretty hard for me to believe that the bond will not start to decline. That will deflate debt. The stockmarket will probably take a hit, but will start acting like a hedge. When people see their dollars eroding, the euro in trouble, the bond losing value and commodities 'risky', what is left?
LOL this dude is wack. Dont he lnow The Bernank will prop up stocks forever.
When RMB revalues by 100-200% and workers in coastal cities are making about $20M - $30M and gas costs $8-$12 a gallon etc., then we will be exporting to China and all will be well. Remember, riding that bicycle will reduce Federal deficits by reducing healthcare costs ...
Africa turmoils are all about preventing coming Debt and Dollar crisises. Dollar becomes stronger from here and Stock market has to go lower to release liquity to fund debt. Some countries have to be sacrificed for continuing of status quo of US, or US has to revolt by itself, you select which one?
The Bernank is going to print as long as he can. Only when the ink suppliers demand silver for payment and stop all ink deliverys will he be forced to stop.
Rogers giving his survival advice here in this video interview by that idiot Kudlow on 1/26
http://www.youtube.com/watch?v=wdPC3J_Y4ac&feature=youtube_gdata
Followed yet again by deflation....
I just got a raise in januari :) THAT WOULD BE LIKE GETTING A RAISE TWICE!! :)
WHOEHOE!!