⌛ Peso continues to fall

True to the core re the revolution yet there must be those who understand but who perhaps choose to stand back because banking is convention. There was a "once upon a time" when some banks gave 14% interest. It went down steadily until 1.5 %. Now it seems that money is kept in the bank because it is safer to sit there even though it hardly moves interest wise. Is it possible that the moneys are still earning sizable interests for the bank and/or for the country but that the clientele have to pay debts not of their own making? Like blind volunteers. Maybe.

 

Starting 2002 until this year I put aside small money into funds hoping it will fast grow than depositing it as a saving in the bank.In the end I found it yesterday, more than half of what I put into just gone.,Im still so frustrated now……

 

14% ??? Some people don't even pay that much interest on credit cards. If people could get 14% interest from banks there would be no reason to put money anywhere else.

There are high interest savings accounts which pay out around 4% and before all these problems I think some of them were even up as high as 5%.

 

Failures

BANK Failures

First Heritage Bank of Newport Beach
First National Bank of Nevada
Bank of California

These banks temporary closed their doors because they can’t meet the demand on them. so they have been temporary suspended because of the scarcity of GOLD.

National Gold Bank and Trust Company ( California)
The Merchants' Exchange Bank, of San Francisco ( California)

I think just maybe Gold well be going up soon....

 

This is what I think.

This is the smart money moving out of the market before the slow years long decline to an 80 percent loss on the stock market. There are a lot of forces at work on the stock market the most important two are the unwinding of the leveraged Wall Street banks and hedge funds along with the retired or laid off person paying their bills.
What do you think is going to happen when the banks deleverage from 30 to 1 even 50 to 1 to a 10 to 1 loan to debt ratio. That means 2/3 rds to 4/5 ths of the worlds wealth (read stock market) is going to simply disappear.
and this is happening when the Dow was at 10,000 not 14,000. The drop from 14,000 to 10,000 on the Dow was just the very very smart money leaving the market. The rest of us have to suffer through the 2/3 rds drop making a botto of the Dow about 3000 or so. A lot depends on how many retired and laid off people have to raid their 410k plans to pay their bills. That could push the Dow down to 1000 or below easy.
Just remember the smart advisors were telling you three years ago to take out an interest only loan on your house and put that money into the stock market to grow at 10 percent a year. Then they told us to buy on margin I remember when one told me to do that and I laughed at him.
Now they are telling us not to take our money out. Don't you understand they always tell you wrong because the people paying them tell them what to tell you and they are the ones stealing your money.
So sell sell sell you will not regret it. You can always buy into the stock market when it the DOW hits 1000. As for me I have moved everything to cash and Gold so I am totally liquid now and still buying gold.

 

Doom and gloom talk Teacher. When things are going up the sky is the limit. When things are going down there is no bottom in sight.

Yes I agree with you. Smart money (Warren Buffet et al.) has taken the cream and retail investors like Joe the plummer are left with the sour milk.

Yet I disagree about gold. I believe that Gold is just another commodity. Oil today $64.15 US. Gold today $730.30 US (up $15.60).

There are thousands of pounds mabey tons of Gold in Central Banks all over the world. Also think about how much wealth is stored in Gold by the Catholic Church. Gold is not in short supply. There is still plenty in the ground as well.

If you are liquid you have probably made a smart call. Did you put your money in a bank or under the mattress ? If you bought gold who is storing it for you ? Will it be safe there ? Robbers and thieves use the internet too. Are you behind steel doors sitting with rifle and ammo handy ?

I don't know what will happen. Nobody does. I am 100% in equities now and will try and weather the storm. I have my apartment (Vancouver Canada) and some fixed income from a pension to pay my bills.

The world has plunged into Recession. It may become a Depression. There is blood in the streets and many many people will suffer. However it is not all bad. As commodity prices fall things will get cheaper. Deflation is likely. Oil at $40 bbl will be a huge stimulus to all economies. Asia will produce more goods cheaper. Europe and the Americas etc will resume their spending and the whole d*mn thing will start over.

If I had any cash I would buy land that had fresh water in good supply in a climate that can grow food. Earth population is approx 6.7 Billion and growing exponentially. They all must eat somehow. This month I made a high risk investment in a green field potash property in Saskachewan. Am I correct. Who knows.

Thanks for your thoughts.

 

Buy when the stock market is doing good and sell when it's doing bad. Yah, that's good advice. People in a panic pulling their money out of the market is what's creating screaming good deals for everyone else to pick up.

 

a market fiesta may be just around the corner....for smart investors

And screaming deals there are many....

I've got a nice chunk of cash on the sideline, eyeballing a large cap US growth fund waiting to pull the trigger.....I am simply waiting for for more panicking individual investors to unload their holdings before I starting buying. CNN latest public opinion poll found that closed to 80% felt the US stock market is heading to the crapper....that's music to my ears.....seeing this many market pessimists is an excellent indication that we are getting close to a market reversal from current downward trend.

 

Upon what physical evidence do you base your assumption of a market bottom?

Please share with us.

 

Umm....excuse me????

You're a very funny man Herbalizer, LOL:D