Wall St. Makes Fallback Plans for Debt Crisis

Considering the political and financial bickering that surrounds the debt ceiling issue, it can be very had to sift through the garbage to find a speck of truth and insight into this potential event. Many have said that it's always best to follow the money.

Well as this article says, those who make money.....by making money are starting to cover their backsides and are looking for alternatives to treasuries and the like. Others are looking to swoop in and buy cheaply if the American credit rating drops after a default on the debt.

Needless to say, these guys are preparing for the worst but still have no idea what will happen. Some believe it is imminent.

“The metaphor is a pile of sand,” said Mark Zandi, the chief economist at Moody’s Analytics. “You keep putting one piece of sand on the pile, nothing happens, and then, all of the sudden it just caves.”

Other money-men are finding it good business to invest elsewhere.

Deterioration of investor confidence in the United States could also hurt the value of the dollar, according to William H. Gross, co-chief investment officer of Pimco, a bond fund based in California. Mr. Gross said he believed that the dollar would become weaker because of the country’s inability to deal with its rising deficit. Instead, he favors currencies in China, Canada, Brazil and Mexico. Compared with the balance sheet of the United States, he said, “their dirty shirts are much cleaner.”

This is a very interesting article and it may have some good insight into what may come to pass if our elected officials cannot come to grips with the reality of our current situation. I fear that we may be called to pay the piper sooner than later. We cannot continue to kick the can down the road...but that may be exactly what we do.

NY TImes-Wall Street Article

It comes as no surprise that those who manipulate the money between their own grubby hands are "getting ready" for a situation created by themselves. Most have been ready and have been profiting the whole time. What has me worried is the price of food being driven up for those of us without generational wealth to pay for it. The drought/flooding conditions are only making things worse. The debt crisis scheme is small potatoes to the no potatoes we'll be eating in about six months.

reply to post by the owlbear


I can agree with that. The real question is.....have you prepared in case something like that actually comes to pass?

reply to post by sheepslayer247


Many Americans show no concern over this issue because they are receiving welfare and medicaid benefits. As long as they are getting their food stamps and housing/utility assistance they don't care. However, the republicans are insisting on cutting social security and medicare benefits because they have been spending from these funds and no longer have the money that hard working Americans have paid into. The president has recently conceded to cutting these benefits as well. If this comes to pass, many seniors will have no choice but to turn to welfare and medicaid. The enormous increase in people signing up for these benefits will put a huge strain on the already overburdened states who rely on federal funds to pay for these benefits. If the feds cannot fund social security and medicare, they certainly cannot afford to fund more to the states for entitlements and medicaid and welfare will be cut. There are no jobs for these people and many will go hungry. There will be riots, crime, looting and the feds will declare marshal law. This is the plan folks, be prepared!

reply to post by borntoquestion


I know plenty of people who are quite well off, but never pay any attention to current events or the status of the economy. They are just as blind as any welfare recipient.

Overall, I have to agree with your point. The house of cards will start to fall slowly but once it picks up momentum......Well, I hope many have prepared.

Originally posted by sheepslayer247
reply to post by the owlbear

 

I can agree with that. The real question is.....have you prepared in case something like that actually comes to pass?

I'm getting there, friend.
Btw, I came from the middle of nowhere right in the heartland of the US. I know a little about futures when it comes to ag. Look it up for yourself, the last few years. Prices of corn, wheat, etc.
I always laughed this thing off until now. The flood conditions along the Missouri and other major rivers, the drought conditions everywhere else...things can only go up and there's only so much product. Any advice? I am all ears...and a little wet behind those.