PREPARE For 90% Correction?!

1) Farm land
2) Water
3) Technology that increases productivity of 1 and 2

Here's a clue for everyone...

In 2008 adjustments to Basel II Banking Regulations (known as Mark to Market Accounting) went into effect. This new adjustment, known as Basel 2.5, basically made Sub-Prime Mortgage Backed Securities essentially worthless on the books of Financial Firms, and it reduced the value of even Prime Mortgage Backed Securities that held any delinquent mortgages. When these new rules went into effect, the Housing Bubble Collapsed shortly thereafter because credit dried up...

In March of 2013 Basel III Banking Regulations for the United States and the E.U. are supposed to be finalized...

Basel III has the potential put severe limits on credit availability because it will force banks to dramatically reduce leverage and increase capital reserves. It will also create a Tier I catagory of "Super Assets" that will include commodities and AAA rated Securities that are sold on open worldwide markets. Banks will have to hold enough Tier I capital to survive and complete ordinary business for 30 days in the event credit markets are completely cut off...

So what do you think? Does it sound like they are planning for something?!?!?

Now these Basel III rules could be "adjusted", and will be stair-stepped in, but they could have an immediate and huge impact on the credit markets, and the credit markets are the beating heart of the Fiat/Debt based Economy!!!

Make no mistake, it's coming...just a matter of when, and where, it starts...

Last Edited by Saddletramp on 01/21/2013 11:17 PM

BRING IT ON

Today, my bank loan came up for renewal. I was given a choice:-

1. A variable rate of 12.75, dependent monthly on my future credit score and Canadian base rate.
2. A fixed rate of 16.4%, not dependent on anything.

I chose to lock in at 16.4%.

The bank thought that I was crazy, but at 16.4%, whatever happens to the economy and to my credit score if my income falls off a cliff, I am locked safely in at 16.4%.

Buffet maybe rich, but he did it through clever manners not typically known by average investors.

The concept behind Berkshire Hathaway as a holding company is what gives it is worth. He owns Geico and other insurance agencies plus a number of other big companies. Since the holding company is publicly listed it is more or less a hedge against other typical investment strategies.

What I mean to say is that Buffet doesn't invest, not how you 'think' investing is done.

There is an old saying in the UK stock market which has been found to hold statistically.

"How goes january, goes the rest of the year."

In short, if stocks fall over January, no matter how little, then the market will fall by anything - a few points of tens of percentages by the end of the year.

Likewise, if it rises, even by a little, it will either soar or at least rise a few points above stagnancy.

So, watch the close of 31st carefully folks. This DOES hold statistically.

Buffet was first in line demanding bail outs for the banks HE was heavily invested in. A first rate hypocrite.

Wha? I just took a home equity loan at 3.45 fixed so I could build a summer cabin. I don't know what your situation is, but paying 16% interest will KEEP you from ever building any wealth. Stop being a bankster slave, even if it means eating rice and beans for a couple years.

If the world economy hits a bump in the road, this time around, Canada is going to slam straight into a concrete wall.

1. Although its economy is growing, it is only because of sales of raw materials which will dry up, quick as a flash in a recession.
2. Manufacturing is at its lowest since the 1950's.
3. Personal loans and housing loans are now at a level almost identical to those in the USA before the great housing crash began in 2008, only jsut a tab of a few tenths of a percentage point WORSE.
4. The utter flood of condos in Toronto, still being constructed willl leave the market awash for years, and years.
5. Huge numbers of jobs are connected to Government which is cutting back and will have to to stay affloat if the economy cracks.

They are just moving investments into China, the same place everything else from here is being sent to.

The only thing that will end up remaining here, to have a potential for exporting will be American's Finest Weed.

Buffet is heavy in Insurance (which invests seperately from the books of Berkshire Hathaway BTW), but Obamacare should have been called the Warren Buffet payback/bailout law...because he's going to be making money hand over fist when this law goes into full effect next year...

Actually much of the money that is exiting the stock markets is going into commodities (Oil particularly), certain AAA rated securities, and metals...

Investing in the Consumer & Retail markets is essentially investing in China...

Investing in Commodities and AAA rated paper is not...

I agree except for the AAA paper part. Buying bonds right now is financial suicide. Interest rates HAVE to go up soon, and the Fed isn't going to be able to stop it. The bond market will be gutted.

I couldn't agree more, but Basel III will require all banks to hold some portion of their capital in their new Tier I asset catagory...and AAA paper is most likely going to be part of that in the U.S.A.

Our national Banking system (not just the Fed) holds a humungeous portion of the U.S. Debt...

So, did you buy the book?

America is on the doorstep of a Total Collapse...

This time next year, many of the people on here won't even be alive...

Its over folks..


Hell on Earth is here!!!

Total Collapse . com

Has more info on this...

Great site I think.

There isn't going to be a "next year", at least as far as the US dollar and US-based investment is concerned.

Beware the ides of March.

BTW Saddletramp, love your posts, always excellent.

Stupid bastards opened the Gate.

Yep.
Something wicked this way comes.

Astute observation... I had no idea, could you please reference some material? I would love to spread the word.

I had been all over Buffets tax evading ass - he is also heavily involved with this current administration.

Found this.... scary....

Stockmarket Will Be Blindsided...

No early warning signal when new bank meltdown hits
Gundlach’s now predicting an “ominous third phase,” a bigger crash, one whose impact will far exceed the damage of 2008: “Deeply indebted countries and companies” won’t default till after 2013.” Meanwhile, Washington and the Fed will keep kicking the can down the fiscal road. “Central banks may forestall these defaults by pumping even more money into the economy,” but “at the risk of higher inflation in coming years.”

He admits he doesn’t really know exactly when this final phase will trigger, but warns you’re not “going to get some sort of an early warning” signal. He has “no faith” that any fiscal-cliff deal will resolve the deficit.


[link to articles.marketwatch.com]

You could well be right about 2013, watch Basel III carefully!!!

And gracias on the compliment...

They are using fear to selling a financial newsletter. Follow the money.

Don't need much material to reference. He's heavy in insurance (Geico and some others) and by 2014 Everyone who doesn't qualify for Medicaid will have to purchase Health Insurance or face a fine (Tax) by the government...

Health Insurance is looking to be a growth business, assuming The shit doesn't hit the fan too hard...

Last Edited by Saddletramp on 01/21/2013 11:57 PM

This.
Everyone who doesn't qualify for Medicaid will have to purchase Health Insurance or face a fine (Tax) by the government...(saddletramp)

Or jailed for tax evasion for not paying the insurance fine (tax)?

Last Edited by abeliever on 01/22/2013 12:22 AM

Yawn. Just another talking head spewing what anyone who pays attention already knows.

Anyone holding any stocks, dollars, or anything dollar related will lose EVERYTHING soon...

All the top investors are dumping all their stocks..

Its over folks..

Over..

Exaggerate much? ALL top investors are dumping ALL their stocks? Riiiiggghhhhttttt. Care to post some actual info to back your claim? The reality is that the Fed will continue to pump money into the system. Expect inflation and the occasional mini panic. These are buying opportunities. Dump them on the rebound.

The central banks make the rules. They can and will twist them however they need to prop up their system. It's like being the banker when playing Monopoly. You can't lose. It's in their best interest to maintain the status quo.

In my opinion, the most significant indicator of where we stand today is the fact that the market is above both its 140 year historical trend line and the trend line for the secular bear that began in 2000. These are the marco-forces that will gravitationally pull the market back into equilibrium at some point in the near future, likely beginning in late 2012 to 2013. Add to that any number of catalytic world events which could exacerbate such a correction. QE has been a countervailing force to recent market slides but, realistically, Fed Chair Bernanke can only feed the market so many cans of QE Red Bull before it eventually crashes.


[link to www.advisorperspectives.com]



Check out the chart in this article:


S&P 500 and Fed Reserve Intervention


[link to advisorperspectives.com]