- The Coming Crash - Winners And Losers
-
-
-
- By John Galt
-
- 7-13-7
-
-
- This is going to be one of the most bizarre opinion pieces
I've ever written because over the last three months, I've received a lot
of love for calling the market and economic events which are and have been
happening correctly to a great extent. Whether it was the threat from exotic
financial investing instruments to the real estate market, a lot of kind
words as well as curse words have been directed my way. Now, let's turn
off the gloatometer and get into why I'm writing this piece, and the supporting
facts behind it. I've received hundreds of emails in the last month or
two asking the question "What's Next?" but in reality, it should
be "Which column will I fall into?" The answer is simple, just
like 1930:
-
- Winners and Losers
-
-
- WINNER: All homeowners who are in secure industries who
did not take out an exotic re-finance agreement, have no credit card or
other unsecured debt, and are actually able to save money. This means having
a financial plan including a retirement program which includes safe investments
(precious metals, non-US government bonds, etc.) and having at least three
to six months salary socked away safely in case of sudden unemployment.
-
- LOSER: Anyone with an ARM that did not read the fine
print. The Federal Reserve may just well make "THE BLUNDER" which
I wrote about last month. Either way, you will lose. If you did not convert
to a fixed mortgage or can not afford a $300-$700 per month increase in
your monthly housing expenses, well, a lawyer might just be a good idea
about now.
-
- WINNER: Bullriders. No, not the PBR guys wearing kevlar,
but in this market kevlar might be a good idea, the people who listened
5 years ago and purchase precious metals at their lows. Just think about
it; if you were able to set aside $50 per week back then, you could have
purchased boatloads of silver and your investment now is poised to skyrocket.
Now you have insurance and a future reserve no matter the actions of the
banksters nor buffoons in D.C.
-
- LOSER: People who actually believe that Bear Stearns,
Merrill Lynch, Goldman Sachs, Citigroup, Wachovia, JP Morgan Chase, etc.
actually give a crap about your retirement account, you personally or your
money. If you actually go out and read the news, you will see the numerous
stories where companies like these have been "fined" for misusing
and abusing your accounts and your money. Churn and burn baby, because
if you still think they care, you need a lobotomy. The disaster underway
is of their doing and they will have all the help they need from you, the
taxpayer to straighten it out.
-
- WINNER: Anyone with lots of cash waiting to buy real
estate at 75% under current prices.
-
- LOSER: Anyone who purchased any of the number of DVD's
and/or went to seminars from "millionaires" who showed you how
to buy 20 homes with "no money down". P.S.-That letter in the
mail you'll be getting after the foreclosures on those 20 homes is the
1099 for the money you'll owe the IRS. I'll bet the DVD didn't tell you
about that part.......
-
- WINNER: The family farm. Despite the hyperinflationary
starship poised for launch when Helicopter Ben presses the "START"
button, the family farm is about to enjoy a resurgence unseen in a century.
With the Chinese Communists perfecting the methodology of poisoning their
enemies via the food supply and those cute little neighbors to the south
contaminating their own fields with our toxic waste and their own sewage,
the family farmer with the safety and guarantee of a pure food supply will
enjoy a celebrated status. Already in our community, many people are seeking
locally grown produce to insure it is not contaminated with strange chemicals
or diseases. As the JIT system finally implodes due to the petroleum crisis,
terrorism and the upcoming war, the people who live closest to communities
with family farms will live the high life. Those in major cities, well,
perhaps you can ask your local politicians why they insisted on using eminent
domain to build all those golf courses and ru
- n off the farmers.
-
- LOSER: Big city residents. You will get to live the high
life like my grandparents (God rest their souls) did during World War II.
Just look at it as you did when you were a little kid camping in your back
yard. Yes, the insects will still bite, but you get to check out such exciting
concepts as food rationing, fuel rationing, and of course, my favorite,
money rationing. Fresh fruit and vegetables? You can get them, but with
bananas at $7.99 per pound and tomatoes at $12.99 per pound, you had best
have your own printing press to be able to afford to buy them. And the
sad part is you will look at us "hicks and goobers" out in the
sticks jealously as you hear stories about "Victory Gardens"
as you munch down on your flat Soylent Green wafer.
-
- WINNER: Anyone who has listened to Warren Buffett's warnings.
He was correct about derivatives and that warning has not filtered through
the thick heads of CNBC's bubbleheads who promote "record this"
and "record that" without any reasonable analysis as to why the
market is where it is at. The Dow might reflect a numerical record or close
to one any day now. Or in reality, just maybe, the dollar is worth less
and it's just more hedonic creativity by the banksters to make you feel
all warm and fuzzy inside.
-
- LOSER: Those who constantly beat the drum of the bubblevidiots
and think they will be able to actually see one single dime of the money
in the investments they have guided so many into. The unwinding of the
real estate market might seem like a "non-event" to many on Wall
Street but in the smoke filled back rooms, there is a terror unseen in
70 years. The realization they might lose control and the entire system
unwind will punish the "traditional" buy and hold investors because
they trusted their government and the banksters to do business honestly.
-
- WINNERS: New Zealand and Chile. By avoiding the traditional
alliances with the USSR, oops, Russia and the bizarre entanglements of
the United States and it's failing currency, these nations are in a position
to survive the upcoming economic depression on their own and with limited
reliance on neighbors for legitimate trade.
-
- LOSERS: Pretty much everyone in the Northern Hemisphere.
Everyone it would appear will either be suffering from an economic depression,
internal civil war, or involved in the great World War about to go super
hot in the Middle East. There is not a lot of explanation needed as to
why this war will go hot, you had just be aware that every nation has been
mobilizing except for our own. And as usual, the cost of this lack of preparation
will be American lives at home and abroad. Despite the ability of our military
to "project" worldwide, it is not prepared to slug it out with
the Arabs, Russia, North Korea, Iran and China at the same time. Nor are
the people ready....
-
- WINNER: The survivalist. Oh my, I used that horrible
word. Look it up. See if you fall into that category. This does not just
mean the guy in cammo gear who can kill a bear with a Swiss Army pocket
knife and survive in the Arctic with just one match and a sleeping bag.
This category includes the financial survivors, the home-farmer survivors,
the independent thinker who does not have to rely on others when it all
crashes. Barter becomes a luxury and economics back to the basics of salt
for meat, silver for smokes and liquor for gasoline for this winner.
-
- LOSER: The most common species on earth-the liberal sheep
waiting to be sheared. This does not just mean the political "liberals"
so everyone can unwad their panties now. This means everyone who holds
the belief that "government can bail me out" and will do so.
Those who think that the banksters would never lie to them. That believe
that stock brokers would never act dishonestly with their retirements.
The shearing will be most painful for you. And I hope you don't touch the
wire at your new camp as it will probably be electrified.
-
- There you have it. My summary of winners and losers.
The ultimate winners, of course, are those in charge. They have no obligations,
no true belief or faith that they have to answer to (at least on earth),
and no desire to do anything but enjoy their imperial life of luxury. I
hope everyone here is in the "other" ultimate winners category;
those that have a faith filled life of self-reliance and the ability to
help their friends and neighbors get on their feet to a better life as
we face a period unseen in the history of the United States and Western
civilization.
|
