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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 437.23+3.8%Jan 20 4:00 PM EST

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To: elmatador who wrote (110430)2/5/2015 12:56:27 PM
From: teevee  Read Replies (1) of 219583
 
Debt mountains spark fears of another crisis


Now, at the slightest whiff of an economic slow down or deflation, either money is printed or borrowed. All gov's now addicted to cheap money and low interest rates. This cannot end well. When the next black swan arrives (impossible to predict), I believe it will be much much worse than 2008/09 as the resultant international banking system and rules is so far unchallenged and it is unknown how it will respond. For example, imagine if $3 trillion in pension and mutual fund investments all tried to "get through the door" and sell at the same time, and the knock on effects to the banking system? I fear all savers, companies with leveraged balance sheets, and consumers with debts will be wiped out. Only companies with "fat" on the balance sheets, and paid for hard assets will survive, although liquidity initially will be poor and prices low. Everything else will be no bid, no offers or zero.......
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