The Chinese and other nations are discussing setting up an alternative global currency, and have cut back on their purchase of U. All assets kept going down in price during the Great Depression – and only stopped going down when the bad debts were cleaned out.
There’s a saying that the market can remain irrational longer than you can remain solvent – this sort of business downturn can last for 20 years – a long time to wait for your stocks to get back to the value they have now.
Don’t listen to the broker or your financial analyst if they do this.
Although owning stocks, commodities, and real estate will eventually be a good idea, right now the name of the game is the preservation of capital.
Housing Bubble Weiss points out that in all the bubbles in history, investors had to put up some of their own money.But the world is complicated and full of Black Swans, which Weiss is well aware of, so although he’s betting on deflation, he knows inflation is still possible in the future, and shows you how to hedge your portfolio for sudden inflation as well.Weiss’s father was a very successful investment adviser, who told his son he didn’t think that Greenspan and others were right that the government could nip a depression in the bud by acting quickly and aggressively.[An aside: here’s where I part ways with Weiss, he seems unaware of peak oil and everything else. Richard Heinberg explains this better than I can in his outstanding book “The End of Growth”].Weiss thinks we’re headed for much worse times than we’ve already experienced.The bottom line is that no matter how far home prices have fallen, prices could still fall a lot more, because more and more homes remain unsold, abandoned properties are falling apart which lowers the value of homes nearby, there are millions of ARMS about to be reset at higher rates, increasing unemployment, and increasing numbers of people with home values below the balance owed.Weiss concludes that if you need or want to sell your home, don’t wait and gives 10 steps on how to sell in a sinking market, or to hang on to your house if you don’t want to sell it.A book review by Alice Friedemann, June 17, 2009, of: Weiss, Martin D. In 2008, 41% of the nation’s wealth was flowing into the most corrupt financial industry in history (historically banking and other financial institutions comprised at most 15% of economic activity. How to Protect Your Savings, Boost Your Income, and Grow Wealthy Even in the Worst of Times”. The economic crisis we’re in now was predictable and inevitable – too much debt has accumulated since 1977.But in the housing bubble, millions of people bought homes with zero money down, with no collateral or evidence of income.Many of these loans were predatory with outrageous hidden fees and teaser rates that lasted just a few months.