This is really scary. I am totally confused as to what the average person is supposed to do to cushion themselves against this financial crisis. Beyond stockpiling and investments, I am concerned about what real money I have right now. I don't want to lose it or have it be completely devalued and worthless.

In addition to the world stock-market free-fall, here in the UK property prices are starting to tumble, which have for the past decade been a safe-haven for pension-investors burnt by the dot.com boom/bust, now those brave souls who risked the stock market for their pension fund nest-egg are about to get shafted...a real 'head you lose, tails you lose' situation for the aveage joe and his dog

Panic? Honestly, if everyone is sucking their money out of the system on a global scale, then you'd have to ask where is it going.

It isn't just going to go poof and disappear people, it will resurface.

Ironically, its probably the best time to start investing.

Currency is merely a contract for someone's time. As long as human beings are willing to work, it is not possible for a total global currency collapse.

"Where did it come from?" People slaving away at their jobs. And they will continue to do so, because someone else will continue to pay for it.

I think panic describes accurately what is happening. Investors will ultimately reinvest their moneys elsewhere.

Originally posted by Choronzon
Currency is merely a contract for someone's time...

Could not agree more, which is why I think "income" tax is a farce as there has only been an exchange of proportionate value, no added income. But then that's a different thread...

Best time to start investing? Oh geez good luck to ya

But, the world is now more sophisticated and prepared to march toward a world government. The super-national sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries."

- david rockefeller

what problem would result in a "solution" stated above, where people would react and demand something be done?

the only thing i can think about that would bring the truama necessary for a "NWO" to come about would be a World Economic Financial Collapse. Finance is the backbone of nearly every economy. HELLO?

The bankers organized a crash in 1929, to consolidate power, will the world's elite benefit from doing it again? honestly i don't know

We are talking about the Solvency of banks, they may go bankrupt. You want to take the chance investing in something that may go belly up a few weeks down the road?

They are Panic selling to cover losses. So yes alot of the "money" does disappear because it was never there to begin with except in the "minds of those who guessed what it's value" was based on the confidence investors had in these investments. "Money "supply is over 90% credit (loans punched in on a computer screen) w/ the remaining 10% be thru the printing press. Now that people are losing confidence and defaulting and unable to pay when "bets" go bad, "money" or credit should i say does indeed disapear.

And As Ambac and MBIA are insolvent and are the one's who are supposed to provide insurance for bonds that go under, no one knows where to run. Credit is created literally from thin air, a few punches on a computer screen. It is fractional banking i.e you deposit 10,000 dollars and the bank can lend out 9 times the money you deposited.

So when bank capital experiences a loss. i.e panic selling where people ar only willing to pay 25 cents on the dollar, indeed 75 of the credit (i.e "money") did indeed evaporate. and then banks have to cut back lending by a factor of 9 for every 1 in capital they lose.

This is called credit deflation. For every loser there is not another winner, (unless you consider a winner the person who sold first and got 40 cents on the dollar instead of 20)

The world wide effects of this are rebalancing global currency's w/ the euro falling, and in turn bumping the dollar up a lil bit.


The bankers *may be foreclosing* on people's debt. The american consumer can take on NO MORE debt, the game may be up.

Or the gov't could step in and provide a giant Bail out to AMBAC and MBIA and in which case the economy would stabalize although the dollar and other currency's would continue to fall.

other wise the conditions met for a police state will probably materialize and mass unemployment could result.

[edit on 21-1-2008 by cpdaman]

Originally posted by cpdaman

This is great time to invest defensively.

As in ammunition?

The real question you should be asking yourself, is who is pushing this hysteria. They are the ones with something to gain.

spellling and added last line.

Yes, thank you for bringing up that information by the several URL links that you posted. In this day and age though, I concur that brokers may have some thoughts that preclude what is going on and refer back to times of the Great Depression. However, also since some people are involved in multi-national coporations I can only conclude that at this time perhaps their opinion is that they would not suffer as much as some of the people will and that today being Martin Luther King's, Jr. Holiday that we may reflect on his important words given back in the Past starting with:
>>>>>>>>>>>>>>>

"I have a dream!"

<<<<<<<<<<<<<<<
and so forth. Perhaps a day like today is a day to reflect upon the state of the world, and the money = brain stimulus package that reflects the true feelings of only some of the people in the way that they intend to handle this reflection of the words on this Holiday.

On another tone, let us perhaps reflect on another's words so boldly claimed by a supposed time traveller also:

>>>>>>>>>>>>>

"Greetings. I am a time traveler from the year 2036. I am on my way home after getting an IBM 5100 computer system from the year 1975.

My "time" machine is a stationary mass, temporal displacement unit manufactured by General Electric. The unit is powered by two, top-spin, dual-positive singularities that produce a standard, off-set Tipler sinusoid.

I will be happy to post pictures of the unit."

<<<<<<<<<<<<

Perhaps a better way of stating any of this may be in my own words:

Get your camera's ready then to take pictures!

If those people do end up jumping out of windows, then it will only remind some of what also happened with some people during 911!

I have yet to see any neurological papers written on the equation:
money = brain stimulus
But then not being a neurological scientist or doctor I may still perhaps look for some papers on this equation, but as of yet, I think I will find none.

Also, I donot think that I need an IBM 5100 computer and that it also will not fix the financial crisis going on either.



[edit on 1/21/2008 by AmoebaSized]

How ironic that Dr. Martin Luther King, Jr. would save the USA today after the US American government had him killed. Who'd a thunked it.

I wonder what US Americans will do with their George W Bush $800 that's really worth all of 8 cents. Scratch that. It's not even worth 8 cents.

But never mind. Move along, folks, nothing to see here.

The rich get richer through all of this. Time to sieze the Rockefeller fortune and Foundation monies and distribute them to every man, woman, and child who are citizens of the USA.