Attention

The opinions expressed by columnists are their own and do not represent our advertisers

Monday, August 17, 2015

A Letter To The Editor 8-18-15

Today, as I do most days, I checked the NYSE pre-market activity. I found that futures were up..... And then dropped after the manufacturing numbers from New York were much much lower than anticipated. I decided to back away from today's data and look at recent past activity. I found that recently most numbers were predicted by the "experts" to be higher which pushed the market higher and when earnings came in lower than expected the market plunged. Common sense....right? Then I backed up a little more. 

I looked at the Dot Com "bubble" before it popped. The so called experts were proclaiming that not even Alan Greenspan could slow the tech market.......and people invested. Millions were lost. 

I looked even further back to the benchmark event that changed the lives of Americans forever - the Great Depression. Just prior to the collapse of the stock market the experts of that time were selling the stock market to investors claiming that the economy would never slow down causing people to invest heavily. And we all know what happened next. Even Herbert Hoover in 1930 immediately following the collapse was stating publicly that the depression was over. History shows that it clearly was just beginning. 

We are continuously being sold lies by people who benefit financially on our losses. We can look back 100 years and find undeniable examples of this. I'm not some liberal hater of "rich white guys". I'm very conservative - but I'm also a realist. While investing in the stock market can be lucrative it can also be a vehicle by which you can be lured into a situation where your life's savings can be stripped from you. Many of the Wall Street experts exist solely to boost your confidence in a market they know has failed fairly regularly since the Great Depression by convincing you to ignore facts that are right in front of your face. These facts do not paint a pretty picture for the global economy. 

Some of these facts? 

Oil prices are down. But isn't that good? NO not this low. Oil prices this low indicates our global oil market is glutted. Why? Because globally manufacturing is down....because demand is down. This is indicative of a slowing economy - worldwide. Want to add insult to injury? When the sanctions on Iran are lifted the global oil stockpiles will even be higher. Iran has millions of barrels of oil ready for market sitting in tankers in the gulf. This will happen overnight when the sanctions are formally lifted. The oil companies will be laying off thousands when this occurs. Those who are laid off will not be purchasing as many manufactured goods......you can see where this goes. 

The reduction of the size of our military will reduce the number of military, contracts will be reduced, and military contractors will be laying off people. 

The IMF meets in October to decide if the greenback will remain the worlds reserve currency. Many people believe that our dollar will lose that status. If so, trillions of dollars will migrate out of this country and our ability to borrow money from other countries at a low interest rate will go away. BIG PROBLEM since are tax revenues can't service the interest on our current debt. 

Folks history repeats itself because human beings are creatures of habit. 

Look at the world around you. It's spiraling out of control. Big government we can't afford. Wars we can't afford. Financially supporting countries we can't afford. Entitlements we can't afford. Borrowing money we can't ever pay back. What does this mean to you all? We are bankrupt!! Where does the money come from to pay for these things? Us! That means when they call the note WE are bankrupt. 

It's been said that the definition of insanity is doing the same thing over and over again expecting a different result. Hmmmmmm.... 

Our stock market is artificially high now. When it "corrects" who will lose? You and me. Don't let these experts convince you all is fine the way people were convinced in the hours and days before the collapse of 1929.

10 comments:

Anonymous said...

This country is on the verge of collapse, a good time to repent, come back to God and realize where material blessing really comes from.

Anonymous said...

Keep an eye on the Chinese market. They draw backs ate affecting the market worldwide.

Anonymous said...

I find it laughable that the Dow is rising in spite of the negative news today. Tells me that someone is tweeting market to entice the rest of us to invest. When we do watch out. They will pull the plug and money will drain into their pockets!!!

Anonymous said...

Stocks can go up, however if the value of the dollar declines at the same time then technically there can be an argument that there really aren't any gains, in fact many will lose their butts. Mexico went bust in 1982 when one day one US dollar was worth 25 pesos, the next day that same dollar was fetching 2000 pesos for a US dollar. This was very good for Americans at that time, cheap vacations and goods, but put 97% of middle income Mexicans in poverty over night. It can happen here. Heck many of the older Mexicans could add and subtract enough to do the math on 25 pesos, when it got to thousands they couldn't count that high, it really was sad.

Anonymous said...

Good point . Hyperinflation. The devaluation of our dollar. Weimar Republic went thru this just before hitter came to power. I just paid $17.00 for a roast.

Anonymous said...

this is an excellent overview of the economy. take the warning.

Anonymous said...

k mr. bloomberg there's lots of opportunities in today's economy

game's sold not told tho

Anonymous said...

Didn't say there weren't. My point was that one is often better served to open ones eyes and make educated choices than to put there faith in some Wall Street snake oil salesman. Make no mistake. The economy will fail. It is a mathematical certainty. But the savvy investors will make money. Example: one who owns investment real estate with no debt stands an excellent chance of surviving and thriving in a collapsing economy.

Anonymous said...

October and shortly after when the bonds move, we will see the squeeze and it wont be pretty.

Anonymous said...

That's putting it nicely. Hungry people are desperate people. Desperate people are dangerous people.