Thursday, January 7, 2016

Remember the Cypress Crash? Stockman's Update

Stockman gives you a blow by blow of what to expect from the coming USA crash.  it's too late now, but it might also have been edifying to note Iceland and Cypress were once at the same point, but Iceland told the bankers to go $ç≠æw themselves, and they have had solid, steady recovery.

Not so Cyrpess.
In order to fully grasp the extent of this devastation, consider the following: had you bought the market after it had declined by 90%, you would quickly have lost another 90%. Had you bought after it had declined by 90% twice, you would just as quickly have lost almost another 90%. So since 2007, this market has seen three consecutive declines of 90%. As far as we know this is unparalleled. If there had been a stock market in the Roman Empire, it might have done something similar around AD 400 – AD 500.
So when you are advised to buy the dips, you'll be the one getting dipped.

Note the important point: there is zero change in productive capacity. Only the ownership claims of that capacity, plus the ability of the state to borrow enough to support the promises of the state to buy some of that capacity will dwindle.  People will be fighting over the known.

Stockman again reiterates anyone hurt cannot complain.  You get what's coming to you, even if the smart people will be made whole, will move their assets before the truth comes out.  More for them less for you.  And he says he has no recommendations.  Read the whole article.

I have a recommendation.  Start your own business.  It will be small and off the radar.  To small to steal, and you can manage your way around the dizzying new regs designed to steal your results.  The future will favor the small.

And you won't need bank credit, you'll use vendor financing and extend your own asset-backed credit. At no interest.  You will be part of the solution long before it becomes clear.

Feel free to forward this by email to three of your friends.