A More Bearish View: A Crash Course for non-Bears [Video]
December 06, 2008
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A prudent man seeth the evil, and hideth himself: but the simple pass on, and suffer for it.
Proverbs 27:12
SUMMARY Most Boomers are planning their future retirement on a model of expectation based on past experiences ie 6-8% return on stocks, constant rising real estate, defined Social security payout, defined benefits, reasonable food and gas prices, etc…. But I am a 100% certain that the next 20 years are not going to be anything like the last 20 years. Many Boomers that retire too early, or live a lifestyle based on legacy economics are in for a shock, as thing unwind.
DETAILS You should be thankful for what you have: your health, family, ten fingers, ten toes, drinkable water, indoor plumbing, US citizenship, heaters, shoes on you feet, etc….
Being Bearish does not mean that you have to be unhappy or unthankful, it is just means you recognize the circumstance and mathematics of the current market condition. Also, for the brave and entrepreneurs there will be huge opportunities to acquire wealth, as thing evolve and you move ahead to seize opportunities.
In Oct 08, while drinking coffee, I started a conversation with a couple of retired Baby Boomers, who had recently bought a condo on the water in Virginia. Their daughter in her 20s, had moved back in with them, she was unable to find a job that paid enough to support her.
The “baby boomer wife” said she felt sorry for the young people today, because the price of housing had gone up so much, young people could not afford to buy a house. She did not recognize the housing bubble, even though it was very evident to anyone in the city we were in. That housing in her town, would fall significantly to be in line with rents, was not in her current vision.
I did not tell the “baby boomer wife”, what I thought. What for? She did not recognize my status as High Score here in Fooldom! My Top Fool Ribbon earned on 21 Nov 08 [abitarePERFECT], meant nothing to her. I would just sound like a “doom and gloom” mad man. Why waste the calories and time teaching those on the “small bus” of economic understanding.
But I will tell you Fools what I think: Some “Baby Boomers” get it [the prudent] and some [the simple] do not.
The US government is moving towards insolvency, the US dollars role as the worlds reserve currency is being challenged [ref Breton Woods II], many state governments are moving toward insolvency [CA, NJ, MN], airlines [all legacy carriers], automobile [F, GM], manufacturing, construction firms, are moving toward bankruptcy. The sum of bad news bad news coming out can be overwhelming.
Today, I would like to introduce the Crash Course to help Fools, who do not understand the current circumstance. The video is approximately an hour, watch the complete video.
Crash Course by Chris Martenson
http://www.chrismartenson.com/crashcourse/chapter-1-three-beliefs
Hat tip, to JGus for finding this OUTSTANDING video.
NOTE: One of the benefits of success here in Fooldom is the increasing of Groupies and subsequent wisdom added to the dialogue when you post a blog.
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