Warning: Crash dead ahead. Sell. Get liquid. Now.

reply to post by FermiFlux


The world is going to become un-intertwined as it returns to a more natural supply and demand dynamic. Those who produce more than they consume will accumulate wealth, trust, and investment. Those who consume more than they produce will be bankrupt and will have to pay enormous interest rates to borrow.

It's natural law and it can be bent for a while, but it springs back real hard.

I believe that Germany and the other producers in Europe will rid themselves of the dead beat nations and create a strong currency based on production. The 'wolf pack' will then set its sights on the UK and American states bad debt.

It would seem in the present case and cases like it that a short window is had for getting liquid...at some value anyway. Its not a good time to get liquid for most....they are just screwed.....nothing will move unless at giveaway prices. Gettting liquid for so many will mean just walking away from debt.

Originally posted by awakentired
reply to post by Reign02

 

Better clean the machine before you reboot otherwise the virus will return with more power!

Everytime I post on my government computer it doubles up. Maybe it is a conspiracy LOL

Originally posted by boondock-saint
I would disagree with that analogy
due to the fact that the same corrupt
people in this system will invade the new
system like a virus.

You only rise in goverment if you kiss a$$ so anyone who is anyone nowadays is bent as far as i see it.

Any new system needs to be at a local level and justice must be served on those that have commited treason and if after that they are find inocent and are held accountable by the people then they will do no harm.

The sad thing is, that nobody from government to corporate America to wealthy investors in this nation wants American citizens, regular hard worker tax payer to accumulate any wealth.

We are a nation that depends on spending in order to support an economy that havean increasing unsustainable trade deficit shows that we live from imports no exports.

The credit score agencies send a warning that regular Americans due to unemployment, salary cuts and desperation are filling out their credit cards again rather than diminishing their debt to either be able to survive or just to keep their standards of living.

The big corporate monopolies wants Americans to spend in their cheap goods from oversea at the expenses of personal debt so they can make their profit margins



[edit on 30-5-2010 by marg6043]

Why would the OP advise on selling? I would get my hands on ANY tangible assets i could get, we have virtually no proper currency except the Chinese one. (i talk on the global scale)

[edit on 30-5-2010 by Romanian]

We could always follow Brad Pitt's, err I mean Edward Norton's, plan to set everyone back to zero like in the movie "Fight Club."

Cue The Pixies - Where is My Mind?

www.youtube.com...

[edit on 30-5-2010 by tooo many pills]

Marge is absolutely right and this is what i belive. the federal governemnt and corporations do not want anyone other than themselves, to be wealthy* not even wanting us to have minimum wage, hence forth why i think america is turning intoa 3rd world country. break people down enough, yuo get the New world order.
Thier obvisoulsy unpatriotic, and will hire non americans, illegals, breaking the law, so thier profitis can escalate, therfore securing thier lives, ina selfish manner.

NOW! the million dollar question...when does he think, this downfall crash is gunna happen? a date he has predicted perhaps?

This is exactly what causes a crash. Investors getting scared and pulling all their money out of the market. It's a self fulfilling prophecy.

Of course, once the prices drop substantially the billionaires step in and buy everything at a discount.

Don't be scared.

reply to post by TheComte


You must be a billionaire then. If one has to choose to sell or hold and wait and see, most will sell if a drop starts to happen. It's very hard to watch your profits disappear into thin air.

off that topic, The stock market needs to crash completely anyway. It is now a farce. The stock market needs to be based on real worth and not a casino game, and was basically ruined by the 401k.

the big boys have been liquid for quite some time now...that is what they have been doing for the last couple of years.
they are now ready for deflation...the value of peoples assets will fall hard, less buying and borrowing power, wages will contract, and essential items for living will have to go lower in price. this is exactly what happened in the 30's. when the poor and middle income assets are at their lowest, the wealthy will come in with cash and buy on the cheap. most of the poor and middle class will be so desperate, that they will take whatever is offered. once this transfer of wealth is completed, the wealthy will need people to start buying again. certain industries will start hiring, prompting others to grow with the extra income and pent-up demand of the newly employed, and the cycle will start all over again.

reply to post by SunnyDee


I know. It works like a charm. Every time.

Like clockwork.

reply to post by jimmyx


Exactly jimmyx our nation afte losing most of its industrial base now is face with decreased incomes generated by jobs that are only making the people fall into a welfare state

Service Economy Taking Over U.S

The report found that retail sales, cashiers, general office clerks, food preparation and service workers, and nurses were the occupations with the highest levels of employment in 2009.
In fact, nine of the top 10 jobs in the survey pay such low wages that they put a worker supporting a family of four in near poverty.

Most of this people are working, but they are also falling into poverty levels and Dependant on government assistance, wait when HCR comes around and this increasing working poor are forced either to buy health care or to drain more the Medicaid accounts pay by those that still hold a meaningful job in the nation.

www.economyincrisis.org...

I work in retail management. For a good 15 years now. Retail wil only pay the minimum wage, and usualy the average raise a person gets a year, varies from .14 cents to 25 cents. thats or a CVS, and they expect yout o work so hard for so little so others can get paid to sit back and enjoy life, making yours hell. outside of hiring illegal immigrants.
retail is a process of elimination. its one of the only job fields, where yuor encouraged to hate eachother actually at least where i work, and msot manages will not make it past a decade. last year, a few managers i knew were terminated, simply becuase the distric manager didnt like them...so the DM looked for legal ways, knitpicking at the dumbest things to get rid of them....aka a locker was found in back with no lock on it*
another store, pharmacy employees threw thier own drugs out int he garbage, to smear the store manager, at corporates request* once yuor in the pharmacy, at least for a CVS your looked at as a god almost* just how it goes. its unbelivable the amount of murder they get away with by comparison.
so remember just because you have a retail job, dosnt mean they like you or will be fair by labor laws with you* better to have stayed in a salaried profession...but those jobs are coming hard to find these days.

Originally posted by slank
When we feel like we have to tiptoe around possible ugly facts it suggests we don't really believe there is real worth there, or at least not nearly as much as is currently proffered.

We seem to be acting as if there is a bubble, with perhaps some strong arguments in that favor.

I will comment that bad [dishonest/deceptive/lying] accounting tends to push out the good [reasonably honest].
Competition, but negative, cheating competition. The downside of unregulated competition.

We could blame government or more pragmatically blame ourselves for not making sure things are honest or avoiding them when we have real uncertainties. Instead all too often [i am not without guilt too] we kind of treat it as something we can glide over the surface of instead of knowing something about the companies/industries one is investing in & doing a little background checking to reasonably verify honest accounting in quarterly reports/statements.

Granted, the government, incested with Wall Street gamblers & frauds have watered down accounting requirements & standards to the point, you really are taking a blind gamble with publicly traded shares. [CEO stock options, lawsuit immunity for accounting & legal firms]

I guess people will vote [gamble?] with their money. Either this is a 'good enough' way to operate a market, or they will withdraw their funds until more viable accountability standards are brought to bear. Of course it may also mean lowered expectations of returns.

How much do you value your money & perhaps the effort it took to acquire it.
Clearly the government doesn't have the slightest respect for your money or the money it robs from unborn babies. I guess that is a tough problem, but one that need real attention.

Does your dreaming outweigh your respecting? I don't think there is any definitive answer, only various philosophies.

In some cases I beleve you are right. The Enron's and the banks and the REPO agreements and such are definitely due to accounting gimmicks . However it is my view that the majority of publicy traded corporations are required to underreport their earnings due to current accounting regulations. That's why you can't look at earnings to judge how a company is doing. You need to look at how much cash they are actually producing. Looking at the market in this light, the market as a whole is trading at about 12 times cash produced, thus giving an investor a cash return of about 8% annually. Given the current interest rate enviromen,t stocks could almost double before they reach historical cash yield vs. treasury spreads.

Perhaps this whole difference will be closed by higher coming interest rates, but there is no indication of this, in fact the evidence is pointing towards deflation. The logical course going forward is for the market to rise to close this historical spread gap. I've gotten very long over the last 10 days.

Originally posted by ziggy1706
Marge is absolutely right and this is what i belive. the federal governemnt and corporations do not want anyone other than themselves, to be wealthy* not even wanting us to have minimum wage, hence forth why i think america is turning intoa 3rd world country. break people down enough, yuo get the New world order.
Thier obvisoulsy unpatriotic, and will hire non americans, illegals, breaking the law, so thier profitis can escalate, therfore securing thier lives, ina selfish manner.

See, its this mindset right here, the one which thinks someone should be able to live on minimum wage, which is the issue here.

What people forget about America, is that it's not now, nor has it ever been a place where you can expect others to take care of you. If you want that, move to a socialist or even communist situation.

No, America is the place where you start with little and work your way to a place of wealth. If we gave a minimum wage to folks which you could survive on, then you would have a lot less people trying for anything better.

America is the place where you come to strive for more... and if you are focused on status quo, then you have been duped and are in the wrong place for that.

No one else in the world should have to care about how wealthy you are or not. And believe me, the wealthy in the world are not trying to keep you poor... they'd prefer it if they didn't have to take care of you with social services.

I understand the need though, for folks to have this "fairness" sense in their life, and for that they can get that in socialist countries. But this is America, land of the free... free to figure out how to get rich, or freedom to sit around and bitch about not having anything... there is a middle ground there too, but very few find it

Originally posted by tothetenthpower
Look the markets are based on consumer fears.

If you tell everything is going to hell and sell sell sell, then yes, the Market is going to crash.

People don't realize that the value of a company has nothing to do with it's share prices.

It's all based on consumer confidence.

This sort of fear mongering is what will lead to a collapse.

~Keeper

so, is what you are saying that when you buy stock, what you are really betting on is the ptb's ability to keep an illusion alive in the consumer's heads???

reply to post by marg6043

Originally posted by marg6043
The sad thing is, that nobody from government to corporate America to wealthy investors in this nation wants American citizens, regular hard worker tax payer to accumulate any wealth.

You said it right there. I saw this happen in my hometown "steel city" Gary, Indiana. It was founded by US steel as a home for one of its plants. Unfortunately workers making a decent wage along with heavy fines for polluting Lake Michigan was enough for US Steel. They blamed Japanese steel but imo it was a planned failure.

During the war years US steel made insane profits off the blood of the American people. They paid that blood debt by allowing a few generations to earn a decent wage. When they could no longer ignore environmentalists/unions US steel decided enough was enough and chose to downgrade. No Gary was meant to be a disposable slave town from the start. Generations enjoying good wages with a safe, clean environment was never the plan.

As a kid I couldn't understand why US steel was willing to pay millions in fines instead of making proper upgrades. They were just waiting for the right time. They knew it was all going down so why make improvements.

Apply what happened in Gary/Detroit to what has become the corporate US and we're all pretty much screwed. I never thought I would see other towns experience what happened in Gary/Detroit. I thought we were quite unique...I'm not so sure anymore. Clearly "we the people" along with the environment have always been disposable in favor of corporate greed. This is the lesson I learned from Gary many years ago.

I wonder how short these boys are? What is ironic about this site (and everywhere in fact) is people are calling for hyperinflation and a worthless dollar AND a depression. It is actually impossible to have both. You cannot have inflation let alone hyperinflation if there is no velocity of money (depression). People who are totally ignorant state Zimbabwe, the Weimar Republic and Greece as examples of the future of the U.S. But they have NO idea how U.S. debt works. The USA pays the debt back in dollars and dollars only which it can print while that was not true for the above 3 examples. Zimbabwean creditors demanded other currencies to compensate and so Zimbabwe had to print its currency to buy other currencies to pay back the debt which caused hyperinflation (same as the Weimar Republic) and Greece couldn't print its own money as it uses Euros.

The USA does not have to do this. They pay for its debt in dollars and that is it. An alchemist CAN NOT run out of gold. Furthermore the very ignorant also say China won't buy our treasuries. Okay? They own about 3.5%-4% of the USA's total debt. The main holder of debt is the USA! We aren't dependent on China for buying our debt. They park money there as it is most liquid. That is all. The only reason why they want a new reserve currency isn't because of their fear of a dollar crash, it is because the US having the reserve currency lends them a whole bunch of power and influence that China doesn't want the US to have.

Point is as long as there is no inflation, government spending won't create hyperinflation. We need velocity of money for there to be inflation, that is the only way it can happen. If there are no dollars in the overall economy then there won't be an abundance of supply. Hell, if the dollar was about to crash why are central banks in desperate need for dollars right now hence why the FED has been doing swaps (which they also had to do in 2008).

It is scary how many people on this site are ignorant of this fact. Cling to your gold during your depression with your imaginary inflation. I'll hold the dollar and shorting if there is a depression. Keep buying gold while everyone is scared of a dollar crash and fiat currencies and watch your ass get burned if there truly will be many more problems down the line.



[edit on 30-5-2010 by MrDarlingFace]