Sunday, April 10, 2016

We Are At The Beginning Of
The New Greater Depression
"The world’s financial institutions are in even worse shape than the last time, but now business ethics have changed and everyone expects the government to 'step in.' Laws are already in place that not only allow but require government inter­vention in many instances. This time, mistakes will be compounded, and the strong, productive, and ef­ficient will be forced to subsidize the weak, unproductive, and inefficient. It's ironic that businesses were bankrupted in the last depression because the prices of their products fell too low; this time, it'll be because they went too high .. This time, stocks—and especially commodities—are likely to explode on the upside as people panic into them to get out of depreciating dollars in general and bonds in particular. Real estate will be—next to bonds—the most devastated single area of the economy because no one will lend money long term. And real estate is built on the mortgage market, which will vanish .. Everybody who invests in this depression thinking that it will turn out like the last one will be very unhappy with the results. Being aware of the differences between the last depression and this one makes it a lot easier to position yourself to minimize losses and maximize profits .. Most people's standard of living will fall dramatically .. The Greater Depression has started. Most people don't know it because they can neither confront the thought nor understand the differences between this one and the last. As a climax approaches, many of the things that you've built your life around in the past are going to change and change radically."
- Doug Casey
LINK HERE to the essay

1 comment:

Anonymous said...

Last time round there were no negative interest rates and there was no welfare window to pass newly printed money out straight to poor undeserving souls