World economic markets shudder…and we sit here thinking
that everything will be fine! Ya see…this is exactly
the same thinking that existed back in 1928…before the
great Crash! Harbinger of doom…you say? Come on, our
economy is the best in the world…right? Well, if that
is true….think how bad the rest of the world is going
to get hit when the wheels all come off the great credit
markets of the world.
Right now, Institutional Investors are moving out of all
residential long term borrowing that is leveraged. This
market is much as the Commodities Futures Market. They
have been betting with Hedged Money (perhaps as low as
2 or 3 percent) that interest rates or residential prices
are going to change – one way or the other. This is like
going to Vegas and putting your Life Savings on Red, Black,
Odd, Even, or Double Zero! A very “iffy investment take
on the markets”.
So, right now..all these big time money guys are moving
to Commercial Real Estate around the globe. China, India,
Sinapore, Shanghai and certain locations throughout the
western world with low risk potential. So what can a guy
do with a small 401K or Mutual Fund do…about any of it?
Start by paying attention. Ask your investment broker or
guy you rely on…to keep you informed about the strategy
they have in mind. Pick up the Financial Times once in a
while and see what is happening. Investors Business Daily
is another one and check the web to see the state of your
Mutual Fund. Sometimes, you may have to quickly ask your
broker….to get you out…almost at any cost. Hey, they
are going to give you..”The Market is in a minor correction
phase…which will quickly return to major profitability.”
Yah see…that’s why they call them Bulls and Bears! In
this case your broker..is probably full of Bull!
These are times in our history that will eventually dictate
some major changes to our world monetary system and probably
a big change in Banking and Investment Regulations. You
should probably keep track of what the Securities and Exchange
Commission is up to..along with the Dept. of Treasury.
So far, yesterday that is….Long Term Leveraged Residential
Loans have taken a $200 billion dollar write off. Worrisome?
Well, let’s just say….this is no time – NOT to pay attention
to your investments. We will have to see how long this process
continues and how fast Commercial Real Estate growth and sales
can sustain the hungry market for cash. So what happens if
you don’t pay attention? Well, you will either appreciate
moderately (under 5%) or you could lose it all! Hey, it’s
up to you – no one is going to watch your goods when there
is a hurricaine! You will need to do that yourself!

thanks for saying what no one wants to hear! we all have our heads stuck up our, I mean, in the sand! my warning to everyone is to have enough food & water stored away for you and your family for a year. think this is just the mormon upbringing beaten into me since birth?! well if I didn’t learn anything else, the writing is on the wall. I’m just sayin…
Soylent green is people
Some stuff you can’t get out of, for the rest try low yield US bonds for safety.
You mean to tell me you have found one crisis that Congress and/or a President will not cover for us? The ultimate insurer, that center of the universe in D.C., can’t be counted on this time? I’m shocked.
🙂