This new Martenson Report is ready for subscribers.
In it, I make the case the the recent action in the stock prices of banks, insurance companies and GE (really a financial company when you get right down to it) speak of a predicament that may be "Too Big to Save".
The summary of all these charts and observations is that pretty much the entire financial universe continues to crumble. This raises the prospect that, collectively, all these companies are "too big to save," no matter what the intentions and hopes of the new administration or this nation. I see several trillions of dollars needed to merely stabilize the situation. But to return it to its former glory? Sorry, not this year, not next year, and maybe not ever.
You need to consider your situation if the financial system suffers further erosion, as the options before our government are few, shrinking, and growing less and less palatable by the day.
Thank you for this excellent, all-encompassing Martenson Report.
Yes, please share you experiences in forming local groups and your
preparations. Feeling I don't have time to get out of Dodge, and am going to
have to do the best we can where we are now. I know many of your fellow
students and friends of mine are also feeling trapped where they are now.
Dogs and I have many friends on the same page, unfortunately they are
scattered here and there and everywhere, not next door.
Please expand more on the community and securing physical needs.
Great summary of the current financial situation, Chris. I have been in cash positions for over a year now so you can’t get me out of market any more than I already am. Unfortunately, I cannot convert my 401k into gold ducats so I’ll have to stick with the short-term treasuries and other "safe" investments. Our situation would seem to be so dire that a few dollars here or there won’t make a lot of difference anyway.
I wouldn’t give up on the financial monitoring and analysis just yet. Those in my circle of friends and colleagues most likely to discuss our financial situation most typically are unrepentant investors. (I will forward the article to them.) Knowing what going on in the market is helpful to start conversations. Beside we have front row seats on a historical financial implosion and I don’t want to miss a detail.
We do need to prepare for a very different future but I’m not sure that there’s anything you can do to completely insulate yourself and our families from the coming changes. I feel as though given the realities of my current job, family and lifestyle making a big transition is not practical at this point. However, being psychologically and spiritually prepared is as important as growing vegetables, in my view. Looking to your local community for support is part of this process. My wife and I have recently joined a local UU church. We already spend much of our time building that community. We have started a garden and reduced our expenses, as well. When the balloon goes up, those anticipating a new reality will be best positioned to adjust but few will have made complete transitions to solid, independent ground.
Thanks for all you’re doing to help. Good luck to us all.
Is there any way files can be uploaded to this site? I have just finished our third Transition Town newsletter, and it’s a doozy… it’s a great example (even if I say so!) of how community building can be achieved… and I’d love to share it with this community.
Dogs and I are loaded up with puts and put-leaps. Everyone need to educate themselves in how to make money in a down market and how to do this in the safest manner… Buy lots of time! My GE puts don’t expire until Jan. 2011.
Hello Cat:
Too funny, Marsh and I are on the same page. We like puts, like betting on a horse, if your horse trips you win, if he stumbles you might be out the price of a ticket. Lamos are easier to pick then winners. Take care
I was interested in your comment that suggests there is no way to tell who is buying the Treasuries - the Chinese, Japanese, etc, or the Fed (which presumably just prints the money to buy them - i.e., monetizes the debt).
Is it correct that this is not public informattion? In particular is there no way of determing whether the Fed is buyiing?
I find your financial analysis to be very useful and hope you don’t discontinue it. On the point raised above, for example, I do not follow the Treasury auctions and therefore am very interested in your monitoring the situation. It seems to me the first signs of the dollar collapsing may be that the auctions are not going well. I believe Germany had to cancel one recently. If that were to happen here, it could be an indication that the dollar is in immediate danger of collapsing. There might not be time to acquirre physical gold at that point, but one could at least buy an ETF that invests in gold, silver, oil or another commodity.
"From here on out I may switch from observing and cataloging the financial decay to sharing my experiences in forming local groups and making preparations that are less about finances and more about community and securing physical needs." (CM)
Yes, please!
In this example I am trading. I am not gambling on anything, I have reason
(charting and others) to be in the trade. I am looking for a reason to leave
the trade, take my profits, call it done and wait for the next reason to
press... enter. I buy lots of time so I am not fighting the time decay
component of the option. I never bet with the market, all of my trades are
focused and disciplined.... Otherwise, I will lose my shirt.
The upload file functionality is only currently available to administrators. We don’t have it turned on for the wider community. There will be some new capabilities coming before long that will help you to accomplish this. Thanks for your patience while we continue to improve the site!
Informative and scary. I would second the thought of discussing community and security preparations; many of us are going to be where we are.
Of, course giving us your view of when the balloon finally has gone up would also be helpful, LOL, though it may have made it beyond the financial markets by then.
I look forward to each and every Martenson report. I am blessed to have Cat and Dogs as wonderful friends but unfortunately we do not live next door but one hour away. I agree with Cat’s Post #1 above and would love to hear more about how to prepare living in our current home, priority of things to purchase, how to expand our communities, etc. Hope to learn from your experience since this is unfolding at a much faster pace than I had anticipated.
Thank you, Becca, Davos and the entire team for everything you do. Teresa
There has been previous discussion about what to do with existing bank accounts with some of the ailing companies you listed. What about if they hold your mortgage? Or if they hold your line of credit you might want to tap a bir more from in the near term?
All of the events of the past week or two had me nervous that something big is about to happen. Some of the public comments from Treasury and the Fed give me the impression that they are they are starting to panic to the point where they can’t hide just how desperate they are anymore. I was hoping you would post a report that would give some more insights about what’s going on behind the scenes. The message I get from your report is that you’re not quite sure what’s happening either but the signs are clear that it’s big.
Changing the subject:
From here on out I may switch from observing and cataloging the financial decay to sharing my experiences in forming local groups and making preparations that are less about finances and more about community and securing physical needs. I am interested in your thoughts on this.
Yes, please do this! Don’t shift completely away from the financial stuff, but support in building community and meeting needs would be appreciated.
On another note, I’m spreading the word about your talk in Albany next Monday. Unfortunately, I probably won’t make it myself due to another commitment.
I truly appreciate you, your staff, and this community for all the support I get in staying focused and present on what might otherwise be overwhelming circumstances.
Chris, truly engaging stuff. Up is down, and down is up. You are an invaluable resource, someone who cares enough to give back more than he takes. What a wonderful, and rewarding way to live.
A little message to the community. Coming from a very large family (15 brothers and sisters) please take Chris's advice, and make contact with friends and neighbors. What happens in times like these is that someone has bread, someone else butter, others chickens, someone else rice. The point is you will share these items and feast. In addition safety may become an issue so the more eyes, and ears the better.
Chris, the freezer is full, shelves are stacked, water stored. I have planned for 3 months. I have converted dollars to Canadian dollars (live in Michigan/Canadian border). I have physical gold, I have had gold jewelry appraised, and know its weighting in gold. So I think I'm prepared. I'm not rich by any means just prepared enough.
My work is at a trickle, my wife is a nursing manager (her job should be safe) so I'll take care of the house, networking with neighbors and family. Only debt is mortgage, all credit cards, etc...were payed off just this past weekend (finally and enjoyably).
I would like to know what to do with my IRA. Not wanting to take a hit on taxes, and penalty for early withdrawl, do you believe we are 60 days or less from the stuff hitting the fan? If you do I will pull these funds and purchase Gold immediately knowing I can get the money back into the account (should I want to) before having to pay the tax/penalty. I am unclear about this so your best guess estimate would be appreciated.
Chris, as I sing your praises it reflects on your entire family. I know I'm incomplete without the best part of my life, and that is Barb whom I've been with since we were in high school some 37 years ago...Respectfully... Bob ...PS: I trust everyone on this site so your comments would be helpfull too.
Thanks again for the excellent report. As usual, it addresses many of the questions on my mind. One question . . .I am consideromg purchasing shares in an open-ended gold ETF that trades on the Swiss stock market. As you may know, these cannot be purchased through discount brokers, and I have found that the larger full service brokers require a large account (>$100,000) to trade on the foreign exchanges. Wachovia is one exception, requiring no minimum account balance to trade on the foreign exchanges. My question is this: Since Wells Fargo, the parent company of Wachovia, is nearing financial calamity, what impact might that have on nonmargin accounts held with Wachovia. In other words, would my stake in the Swiss gold ETF be at risk, or would I risk "inconveniences", e.g. inaccessibility of my account, in the event that Wells Fargo goes belly up?
If this is the case, and holding securities at Wells Fargo is risky, do you know of any other full service brokers that are relatively secure, and could facilitate trading on the Swiss exchange?
I’d also be delighted to hear any other readers’ thoughts on this. Trading on foreign exchanges is new to me.