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Who Will Be The Bagholders This Time Around?
Submitted by Charls Hugh-Smith of OfTwoMinds blog,
Anyone betting China's GDP is really expanding at 7% and the U.S. economy will grow by 3.7% next quarter is angling to be a bagholder.
Once global assets roll over for good, it's important to recall that somebody owns these assets all the way down. These owners are called bagholders, as in "left holding the bag."
Those running the rigged casino have to select the bagholders in advance, lest some fat-cat cronies inadvertently get stuck with losses. In China, authorities picked who would be holding the bag when Chinese stocks cratered 40%: yup, the poor banana vendors, retirees, housewives and other newly minted punters who borrowed on margin to play the rigged casino.
Corrupt Chinese officials, oil oligarchs and everyone else who overpaid for flats in London, Manhattan, Vancouver, Sydney, etc. will be left holding the bag when to-the-moon prices fall to Earth.
Anyone buying Neil Young's 2-acre estate in Hawaii for $24 million will be a bagholder.
(If nobody buys it at this inflated price, Neil may end up being the bagholder.)
Bond funds that bought dicey emerging market debt (Mongolian bonds, anyone?) and didn't sell at the top are bagholders.
Everyone with bonds and stocks in the oil patch who didn't sell last summer is a bagholder.
Everyone holding yuan is a bagholder.
Everyone who bought euro-denominated assets when the euro was 1.40 is a bagholder at euro 1.12.
Everyone with 401K emerging market equities mutual funds who didn't sell last summer is a bagholder.
Everyone who reckons "buy and hold" will be the winning strategy going forward will be a bagholder.
Anyone buying anything with borrowed money is a bagholder. Leveraging up to buy risk-on assets like Mongolian bonds and homes in vancouver is brilliant in bubbles, but not so brilliant when risk-on turns to risk-off. As the asset's value drops below the amount borrowed to buy it, the owner becomes a bagholder.
Anyone betting China's GDP is really expanding at 7% and the U.S. economy will grow by 3.7% next quarter is angling to be a bagholder.
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The tax-payers, i.e. ordinary working people will be the bag holders as usual
Awesome recovery:
http://business.financialpost.com/news/mining/canadian-mining-company-shifts-from-iron-ore-exploration-to-selling-eggs-amid-commodity-rout
and
http://www.bloomberg.com/news/articles/2015-01-27/commodities-brazil-iron-ore-startup-says-cosmetics-a-better-bet
Anyone who holds Hillary in high esteem is a an old bag holder...
She really is a really old bag of poo.
I would trust a test fart while lying in bed & suffering from the flu before I trusted that corrupt hag...
and THIS is why i LOVE Zero Hedge
In the new ab-normal and with the Fed's desire to creatively engineer "recovery" while pay banks billions more for not lending plus soak up unlimited Treasury's others may no longer want...consider...
Rate Hikes and QE...Simultaneously?!? Actually, Yes!!!
http://econimica.blogspot.com/2015/08/rate-hikes-and-qesimultaneously.html
abby normal
She's the undisputed Queen of Ball Busting however...
Plus 100 for the double pun.
The fatal mistake that places most of us there, not rebutting the presumption that YOU are a taxpayer (a legislatively defined term). Please choose your god wisely.
Holding my bag joke in 3...2...1...
I am a bag holder at least once a day - twice on Sundays. Wait what?
DEEZ NUTS
Rumor has it Reggie likes to hold his bag on Zero's chin.
Try to get your cash out of a securities firm.
Invest it in property, income producing real estate, and PM's (physical).
If your broker gives you a hard time, threaten him.
Anyone who listened to that idiot Eric King and picked up silver @ $42 just down from $50 because it was a massive buying opportunity is a bagholder.
Yea, that would be me...
(I never sold, btw)
Say... That's a nice bag you got there...
Buying an assload of silver $14, only to watch it go to $50 and now back down to $14.... i may be a bagholder, but ASE's are pretty to look at ...
That's called "waiting them out".
It sucks to buy a life preserver for $50 then they put it on sale later for $15... but when the SS Fedtanic finally hits the Ctrl Alt "P" rocks you won't be sorry.
I assume (hope for you) your bag has also grown heavier on the way down?
is it a good idea to put your 401K in a money market account?
It is not a good idea to put it anyplace that the banks or the government can get at. That's why we're all PM holding maniacs here at the fight club... (addendum: Fonestar etal doesn't count)
I was holding fonestar's secret pm stash for him and I lost it in a boating accident.
Deep lake I assume.....
One of the prettiest, too:
https://en.wikipedia.org/wiki/Crater_Lake
http://www.investopedia.com/terms/b/breaking-the-buck.asp
So...... it's not safe, but safer than the stock market?
It is unlikely global assets ever "roll over." An asset is an asset. More likely, global fiat currencies "roll over."
Those holding assets will own something. Those holding currencies will be the bag holders.
Hasnt the Fed predicted 3.7% growth for the last 5 years? Wrong every time...why is now any different?
Just because... here have a nice glass of Cruel-aid......
I fucking love that banana guy.
I could use a solid week of 1000 point daily drops in Sept.
I need moar ZH doom to keep going.
F'n-A right BoP. Roll that knob of nitrous wide open and let this F_cker Rip...!!!
Doom On, it's righteous brother.
It's Brother Love's, Brother Love's travelin salvation show,
Pack up the babies and grab the ole ladies, and everyone goes
Cuz everyone knows, Brother Love's shows
Where can I get my hands on one of these bags everyone is talking about?
There is an Nigerian Immigrant in Rome selling nice knockoff bags on the street...but I am still holding my bag of Gold and Silver....I think I am the dumb one...
The Fed will be a bagholder of UST's ... but that is ok as they can make the USTs disappear while right inside the bag.
Brilliant.
Bagholders. That be the FED banksters. They be liken to owning all the world's corporations in exchange for worthless fiat.
Two words: Jon Corzine.
Need I explain further why I took out my money and closed my accounts?
Going to cash is step #1. Don't forget step #2 -- get your money away from the broker.
And step #3: buy PMs. Secure them NOT in a bank safe deposit box...
And OT, but JUMP YOU FUCKERS.
I wonder why the coyote graphic is loosely shaped like a Nazi Swastika….
all your bags are belong to us!
Just about everyone from the bottom on up will be left holding the bag this time around. It will be empty. It doesn't matter what country they almost all have Federal Reserve printed on it. And even the bag is their property too. They want it all.
http://www.zerohedge.com/news/2015-08-12/solyndra-20-nears-bankruptcy-bo...
The major global financial interests appear to be speaking now. Wouldn't it be great to see everyone working together and make a contribution to create a plan to unwind the planned global financial disaster we've all knowingly been pushed towards. And not moving forward to implement the preplanned waiting in the wings global solution to the problems that had been purposely created to result in the need for that plan. There needs to be a whole new vision and plan that includes a nice smooth non-violent transition. A common goal with effective leadership builds a team and increases chances for mutual success. Currently there is no global common goal, widely disparate leadership and no chance for success of any current planned end goal. In short there's no symmetry.
At least in the mean time now that there is more open international financial dialogue the current financial illusion can be held together long enough and stable enough so there aren't any more escalations. That is if the constant rigged intervention over the years doesn't force an unexpected result and unintended consequences.
A whole new group should own the creation and implementation of the new plan. The leadership for the new plan would need to have no political motivations or aspirations, special interests, or other influences over them. This still seems to be the biggest challenge. After all we'd be foolish to think that the same ones that put us in this position purposely to begin with can be fully be trusted to produce or oversee the solution to get us out. We'd undoubtedly find ourselves reliving history forever. The Predestination Paradox Plan is the name on the current financial plan. Now we need a new vision, plan and name to be delivered and get us all out of this mess for good.