I don't know what will happen. One thing I know is that the
country is in deep pain, and it will not be over for quite
some time, because of the size of both public and private
debt. While folks are outraged with the banksters, ones
I personally know have lost jobs in record quantities and
are also subject of extreme public anger. They had no clue,
they just did their models they learned in school, then they
blew up. The Godly way is compassion and sharing during
these very hard times, not anger. There was a fair amount
of crime around the credit bubble, and I agree, the crooks who
deserve to be punished should go to jail. Yet, not all banksters
are evil, for the most part they are just ordinary people
with a job, now without. -ng-
The synthetic markets are a result of record quantities of
derivatives and high frequency trading that the banks engage
in, because it is highly profitable. These should be
eliminated by regulation, preferably over time, without
causing another major financial crisis. While this bubble
exists and grows, a bigger derivative meltdown that will
add another 10% to unemployment rolls could be around the
corner. The country can't possibly handle that without
blowing up.
Financially, I am not ready to abandon the "bunker", which
is gold, a long term position, because I see the crisis
escalating in the future, rather than abating. Both devaluation
and default will be present, so the treasuries are not
a safe investment vehicle. Gold has always been the ultimate
safe haven. |
