Nothing Changes

Sept. 24 Hans Lysglimt

The bailout changes nothing, it does save some banks for the short term, but the big picture stays the same.
There are much more bad loans out there than can ever possibly be absorbed by the government.
Savings in the US will have to go up, putting breaks on the economy.
Sales and profits will go down.
Prices on shares will go down.
Property will continue down.
Equity will be lost.
Deleveraging will continue on numerous levels in the economy.

So nothing changes.
Sell.
Stay in cash.
The stock market is still heading south big time, this was just a bump in the road.
This was actually a sign to the establishment to get out.

Imagine all the money that is tied in.
All the pension funds (stocks are safe in the long run, yeah right.)
They do not have in their mandate to sell, they have to stay long.
To just watch the carnage.
To keep their jobs their fund managers have to write in their letter to “saver” “investors” who are actually fiat money speculators that they are on a good source and should continue to put in their monthly deposit.

Not until ordinary savers on funds realize that this is a scam and a fraud and stop depositing money can this bottom out.
This might take years, the entire psychology of the masses might have to change.
How long does that take?
A year is way to short.
A presidential cycle is 4 years, the Olympics every 4 years.
Perhaps there is a mental mass physiology cycle of 4 years?
I not expect anything looking like a full recovery before the London Olympics in 2012.
Real estate, business, stock market will be hit hard all the way towards London.

Things take time.
Everything has its time.

This is the time for safety.
This is the time for cash, and some gold.
This is the time for thrift.
This is the time to question all expenditures.
This is the time to focus on your health.
This is the time to cut cost, seriously.
This is the time to save.
This is the time to read and learn.
This is the time to stay put in your job.
This is the time to put in extra effort on the course your are currently on.
This is the time to plan ahead.
This is the time to rid yourself of the 7 deadly sins.

This is the time to enjoy the little things in life, the important ones anyway.

Gran Canaria, Spain. Sunny 26c on the balcony overlooking the Atlantic.
September 24. 2008. Hans Lysglimt

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One Comment

  1. SAra
    Posted 24 September, 2008 at 1:44 pm | Permalink

    Hans! Thank you for helping to spread the truth among many many lies. We here in America appreciate what you are doing, keep it up!
    -Sara