Some financial advice from me (I'd Never forgive myself for not sharing it)

[briann]

I just wanted to say that I am thinking that the worst case scenario (something worse than the great depression) is looking a bit more probable...... I'd give it a 15% possibility (which is still a 85% chance that I'm overreacting).  If it does happen... it wouldn't be for at least another year.. probably more... but I just wanted to suggest that you put take some of your saving (maybe 10%) out of the bank... in case of an unforeseen bank panic of catastrophic proportions.

Again... I don't want to be an alarmist.... and it Probably wont come to this... but just to be safe... I think its a good idea. 

You can put it in a combination of cash/Gold/Silver/Amo/Weapons/whatever... but the point is... it should be out of the financial system altogether.

[Ulli]

Why do you think so Brian?

[briann]

Why do you think so Brian?

Its hard to explain actually. 

This is definitely a Depression-sized event, I said that last year... The Real Estate bubble is larger and lasted longer than any other bubble... and it was pushed unnaturally high and long... thanks to awful policies all around.

But to make it truly catastrophic... the right conditions would have to exist.

I am pretty certain there is going to be another bad bank panic... right around October/November.  I say this because 1) the banks are fudging their near term financials to make them look profitable NOW... but this means that by the end of this year their financials will look EVEN WORSE.... and after all the extraordinary measures that have been taken to bail out these banks.... this would cause people to lose trust.

Also... I am still 90% sure that Real Estate will fall FURTHER than what analysts expect....  causing assets to become even more toxic... and reserves to disappear even quicker.

If these both happen at just the right moment.... it could cause a HUGE rush of people pulling their money out of the banks.... (out of fear.... and distrust of the governments policies)... to the point that in a blink of an eye.. .banks collapse.... and this causes a nationwide panic... and everyone... in every banks start pulling out.

Again... This probably wont happen... but it COULD... so its best to be prepared.

[momofsixbabes]

My husband and I have been concerned about the same thing. However, when the bottom drops out, I don't really know about the American dollar having the buying power. Perhaps, reserves are best (food,water,weapons..). I suspect that the Titanic is still sinking and the musicians are still playing on board to keep the people from panic (which they would if they really knew what was going on). Thus, good warning.

[Rubystars]

I can't live my life in panic all the time. I'm going to do my best to keep my life going as well as I can keep it going and just pray that Obama doesn't totally wreck everything.

[Ulli]

Why do you think so Brian?

Its hard to explain actually. 

This is definitely a Depression-sized event, I said that last year... The Real Estate bubble is larger and lasted longer than any other bubble... and it was pushed unnaturally high and long... thanks to awful policies all around.

But to make it truly catastrophic... the right conditions would have to exist.

I am pretty certain there is going to be another bad bank panic... right around October/November.  I say this because 1) the banks are fudging their near term financials to make them look profitable NOW... but this means that by the end of this year their financials will look EVEN WORSE.... and after all the extraordinary measures that have been taken to bail out these banks.... this would cause people to lose trust.

Also... I am still 90% sure that Real Estate will fall FURTHER than what analysts expect....  causing assets to become even more toxic... and reserves to disappear even quicker.

If these both happen at just the right moment.... it could cause a HUGE rush of people pulling their money out of the banks.... (out of fear.... and distrust of the governments policies)... to the point that in a blink of an eye.. .banks collapse.... and this causes a nationwide panic... and everyone... in every banks start pulling out.

Again... This probably wont happen... but it COULD... so its best to be prepared.

Is the US gouvernment able to buffer this development with a second trillion dollar programm? If yes how much money is BHO able to spent for it?

[briann]

My husband and I have been concerned about the same thing. However, when the bottom drops out, I don't really know about the American dollar having the buying power. Perhaps, reserves are best (food,water,weapons..). I suspect that the Titanic is still sinking and the musicians are still playing on board to keep the people from panic (which they would if they really knew what was going on). Thus, good warning.

Yes... its up to you... but I think that a small amount of greenbacks is always a good idea.  Its always readily available.  Again.. this is all 'just in case'.

[briann]

I can't live my life in panic all the time. I'm going to do my best to keep my life going as well as I can keep it going and just pray that Obama doesn't totally wreck everything.

Thats why people get insurance... so they dont have to worry about being unprotected if awful scenarios occur..   it is for peace of mind and protection against unforeseen scenarios.  Thats all my suggestion is for.... not to alarm... but so that we can protect against this possibility.  Better safe than sorry.

[briann]

Is the US government able to buffer this development with a second trillion dollar programm? If yes how much money is BHO able to spent for it?

That's the big mystery.   You might think that they could always borrow more and/or print more but Its kinda like the boy crying wolf.... the government has taken unprecedented action in the last few months... and  we are all being told that this needs to be done to get things back to normal.

What would happen if it all happened again?  People are Already not trusting the bailouts and the stimulus.  There will be intense distrust and that by itself could get the ball rolling and could cause a collapse.   Also... a second bailout could handcuff our finances... as China would start putting their own finances ahead of ours... they would unpeg our currency to protect China against Obamaflation, ask for higher interest rates to offset the added risk.... and more and more of our resources would have to go keeping China happy since they would be keeping our government on life-support.  It would be very draining... and could ultimately push us over the edge.

[Ulli]

Thank you Brian