MEH.
This graph tells me that the past 30 years WAS the bubble correction.
Posted on 01/04/2015 9:13:01 AM PST by VA Voter
Bonds have been in bull market since the early ‘80s. Thus, an entire generation of investors and money managers (anyone under the age of 55) has been investing in an era in which risk has generally gotten cheaper and cheaper.
This, in turn, has driven the rise in leverage in the financial system. As the risk-free rate fell, so did all other rates of return. Thus investors turned to leverage or using borrowed money to try to gain greater rates of return on their capital.
Today, that leverage has resulted in $100 trillion in bonds with over $555 trillion in derivatives based on bonds.
This bubble, literally dwarfs all other bubbles. To put this into perspective, the Credit Default Swap (CDS) market that nearly took down the financial system in 2008 was only a tenth of this ($50-$60 trillion).
When this bubble bursts, 2008 will look like a picnic.
(Excerpt) Read more at zerohedge.com ...
ping
From what I have read elsewhere those bond-based derivatives are actually closer to a quadrillion dollars.
When the bubble pops it will bring down every economy of every nation within hours maybe even minutes.
Then a savior/messiah-type (Obama maybe?) will show up to save the day and become the collectivist dictator of the world.
I'm just sayin'....
When “printing” is moving the decimal point to the right a few zeros and the immediate fallout of doing so is contained to a small upper echelon, it’s not likely that anything will be allowed to “pop.” The ease and transparency are too great. Will there be consequences eventually? I don’t see how there can’t be. But, I also don’t see the end of it provided the current system of world finance remains in place. They can play pretend for a very long time, as we’ve seen since 2008.
I just read The Harbinger by Johnathan Cahn. It was quite astounding and has made me nervous.
I have an appointment tomorrow (as it happens) with my investment manager - not sure what to do.
Any advice?
Timber stock- WY 5% of your portfolio
Oil stock COP 5%
Defense-ATK 5%
Get of out all Bonds- when rates go up 1%+ next year you will lose at 3-6% on their value.
20% Cash
The rest in the SPY- S and P 500 and the Schwab 1000 Index.
Keep in mind that Nimrod was the first guy to attempt world government. His father was Cush and just happened to be a black guy. Would be really that surprising that the finally and last attempt at it would be by a black guy?
“Any advice?”
Don’t ask strangers for financial advice.
Don’t let fear cloud your thoughts.
Mr. Durden refers to the "Greenspan Put" and crisis-driven successors.
Buy canned goods and bullets.
Bump
I’ve made some money over the years by closely following ZeroHedge.
And doing the opposite of whatever they say.
Lol - good advice. I somehow didn’t consider FReepers strangers, but you’re correct, they are.
I’ve never been nervous before, but this book has made me have some serious thoughts of heading for the hills.
Find a good health/science/bio mutual fund or EFT and put a big chunk of your funds there!
MEH.
This graph tells me that the past 30 years WAS the bubble correction.
It is an excellent rule to live by. Behave in the exact opposite manner as well.
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