7 signs of the next financial crisis
Five years ago, Lehman's collapse sent the market and economy into a panic. One of the insiders who saw it coming sees eerie similarities in the U.S. market and Asian banks, and a big drop ahead for stocks.
Ordinary people can make some $, if doing the same on a very limited and small scale.
However, what USA NEEDS is MANUFACTURING, an industry with substance, and jobs.
This is not to be dismissed. I recently watched a documentary about cities in China that have been built but don't have any occupants! They over built in a way that is completely unbelievable with no one to occupy the apartments and businesses that were built there are no less than 7 of these huge crumbling empty cities built in China. They took over farmland and built condos that no one in the area can afford and at sometime the bill for all the work and materials for these empty cities come due China is going to have a very serious banking problem for financing these city builders who built cities without people to occupy them! It is an absolutely insane situation and the bill for the work is due! The big Chinese banks are going to crumble under the cost of these follies! It is true look it up for your selves the truth is out there!
One thing I learned in the last several meltdowns is that the stock industry incluidng mutual funds, never tells you to remove money from the stock market.Look at the amount of buy versus sell recommendations. All in favor of buy all the time. What is also being gnored is the long term affect of inflation in the next 3 years that willl hit when Bernie Bernake leaves office and the whole mess is thrown onto the next president.
China is a risk but one important fact is ignored-- China has a major trade surplus so they are better equipped to withstand a banking crises since the government can put funds where they need to be.
Unlike the USA which is a debtor nation and can only print money.
Why let the markets control your life? The average Joe (which is me) is just trying to make it.
One day the media says how wonderful everything is and the next day they are declaring the sky is falling.
It is what it is. Quit trying to obtain that pie in the sky.
I've been 'beating on the drum' for my clients to reduce their debt, trim their margins to limit their exposure if markets get the jitters causing another correction. But not for most of the above reasons- because as we come up on October 1st, you're going to see vast & wild swings as markets try to get their barings with Obamacare & employment (or lack of). We had a very poor jobs report- not really a surprise for this time of the year, but I had hoped that we could start to reduce the treasuries 85 billion bond buying a little. Now, that may be put off a while, which has contributed to the recent gains the last few days- not to mention that the strike against Syria is being 'tabled' for the moment.
So keep working on reducing that debt, stay on your path of financial freedom & don't follow the crowd !
RECENTLY, SOMEONE ON TV COMMENTED ABOUT ONE OF OBAMA'S SPEECHES AS BEING PHONY. I CAN'T THINK OF A MORE APPROPRIATE WORD TO DESCRIBE HIM, PERIOD, ALONG WITH THIS ECONOMY.
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Consumers are very status conscious in Asia, Africa and other emerging-market areas. This is especially true in China.
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