Do not trade on any of this information; this is for educational purposes only. Seek out a qualified financial advisor, if you can find one.
You’re doing great in the stock market today, if you have any savings left of course. The “digital ones and zero’s” are raging from the Federal Reserve and are no longer going into real-estate. This is becoming apparent as more strip malls in Hudson go up for sale and prices continue to drop (see charts).
We likely entered a recession in late 2012 and need to begin addressing the real problems before this recession becomes a depression. Right now we are at a very predictable stage in the melt down and so here is an idea of what happens next.
I have illustrated in video The Federal Reserve and the major inflation concerns I have around the printing. I have outlined the bubbles we see in the homework for last week. The recent commercial property for sale signs represent owners of these properties seeking the “greater fool,” or someone who will still buy property at the top of a new property bubble. Good luck.
I expect shortly commodity prices will take a sharp turn north. After the housing and stock market bubbles begin bursting one usually starts in commodities as investors move to tangible assets. This has been happening for years in gold and silver. Inflation will happen quickly and likely will first be seen in wild fluctuations in grocery prices. At first the changes will be weeks apart but then eventually spiking even daily. Government intervention in the form of price controls usually come next and will result in shortages.
We are just before these stages.
On a side note someone might want to call Chairman Walker and ask if his lightly regulated bank known as the WEDC has any loans in the housing industry and related manufacturing, like logging and cabinets. With an extra $8 Million going to loan loss reserves this year I have a bet the Chairman has a default problem starting on his hands.
In case any of the politicians of our greater community are reading, the student loan bubble is my personal favorite. The debt in this bubble is non-dischargeable in
bankruptcy, and I would guess by
the 20%+ default rate the kids have nothing to lose by saying screw it. If I were the red and blue team I would review what I said in my February video, “Opening Remarks, Why Now” about these people and begin paying attention.
Since I brought up the WEDC, would someone call Bill Ruben for me and ask if a list of these government loans given in Liberty Valley is available and who got them? I have openings for jobs coming next fall and I’m looking for college-educated people working in coffee shops and living with parents, preferable with a student loan in default. Coffee shop experience not required, nor a degree. We take all reasoned individuals.
I have the best idea.
Come to our Tuesday Meeting to hear more.
Tuesday, November 12th
Carbones/Willow River Inn Burkhardt
Bring a friend