Tuesday, May 25, 2010
Is history repeating itself?
PIIGS you say? We don't need wars we have the world stock markets to kill people. What happened? Greece was getting a bailout from the European union and suddenly one of the sheeple got nervous and started pulling credit. Same thing happened in 1929 only on a smaller scale. It happened with people pulling their money out of banks. This time whole countries are doing it. Way to go Bushco! Remember none of the issues that got us into this mess were seriously addressed after our own melt down. Bush merely shoveled a bunch of money at the problem and left it for Obama to try and figure out. The Wall Street game has been going on for two years now. It was "place your bets gentlemen" the taxpayer has just fronted us our next wager. And nothing changed. The same crappy naked shorts, derivatives and toxic loans were being bought and sold after a little repackaging I'm sure. Slap some lipstick on this pig and see who'll fall for it this time around. And I guess they did. Leveraged to the hilt once again hoping that this time around they wouldn't be left holding the bag when the music stopped.
This may be different this time around. I could be wrong but I never really saw any major changes to the way business was being done the last two years other than it's been nearly impossible for small business to get loans to keep operating. So the advice from those that have more technical expertise than me say to get out now while the getting is good. I was smart enough or lucky enough to see what's happening a bit over two years ago. Here's how. You ever have a gut feeling that something is too good to be true? That's the general feel I got back in 06 and 07 when people were flipping houses faster than burgers at McDonalds. I kept hearing how people were going to make a ton of money on the house they just bought. Once they vacuumed and cleaned the windows it would be worth another $25 grand. That was the tip off for me. Never in my life did I witness such a gold rush in the housing market. When I heard even pizza delivery guys were getting into the mortgage business I knew the end was near.
A friendly piece of advice. Don't buy gold. You can't eat gold when everything's hit bottom.