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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Paxb2u who wrote (107406)2/19/2010 4:16:48 PM
From: Skeeter Bug1 Recommendation  Read Replies (1) | Respond to of 110194
 
Pax,

my thought process now is...

1. i don't know what will happen, but i'm leaning toward funding be cut off and the money supply being cut off. in the mid to late 1800s, the bankers reduced money supply 85% against a fast growing population - it was awful.. they did this on purpose. the hidden derivatives might make inflation better for banksters, but i think they spend the last 18 months ditching their bad assets and liabilities onto tax payers.

2. we will learn a lot in the next 2 months. the fed is supposed to stop much of their easy money policies by the end of march. interest rates are rising ahead of this expectation. things could change - we'll see.

3. this isn't about hitting a home run... the risks are too great. this is about wealth preservation, first and foremost.

4. wealth outside of the system is a good idea - a terrorist attack (including economic) could end up shutting down the banking system and the stock markets. fire TARP banks - don't let them profit off your money. some cash and some PMs are probably a good idea. I'd hedge any new metal purchases now, though, with an equal short of the markets. if they take the markets down, gold could down pretty hard, too - but probably not as hard as your hedged market short.

i thought bush would be a one termer as the bubble would bust before 2004 or so... so i've been early in timing. i did the same thing with the tech bubble in 1999. if we go down first, i could see it within 2 months or maybe sometime within a year. i'm trying not to gamble, though, so I'm waiting for a signal the long term trend has changed. Any PM / market short position I take now is only for bank / investment market closure protection.

of course, buy food, protection and have access to water.