I'd like peoples opinions on this
I'd like peoples opinions on this
I came across this on my travels around the internet a while ago. I think it makes some valid points but have to admit my brain hurt trying to understand it all . I suppose the thing I didn't really have a handle on until I saw this was the concept that the banks actually lend out money they don't have. Look forward to hearing what others think of it
Banks are the same as a super market you go to Coles and buy a carrot, you go to the banks bank and buy $1, what you do next is the secret.. plant the carrot and grow more or eat the carrot and buy more rubbish to go with it such as Bottle of wine , the $1 buy a share iin some company or buy a beer.
We have over spent and now it's pay back time the carrot has died and the $1. now cost $1.60 to pay back.
There is always something to worry about in the world of high finance...
The internet is a great source of information, some of the info are useful, others made you more worry than you should.
You can virtually find anything to support your cause on the internet
a bull case you find hundred of articles, a bear case you find the same, the collapse of banking, the end of money, the age of gold etc...
Just make sure you are prepared for what may lies ahead and ignore most of the noises...you will be a happier person and live a less worry life :-)
In the world of Kung Fu panda
Oogway: Quit, don't quit? Noodles, don't noodles? You are too concerned about what was and what will be. There is a saying: yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the "present."
"cash - a call option with no expiration date, an option on every asset class, with no strike price.” Warren Buffett
As long as you can realise change is inevitable and be prepare to change not like most of the home owners who think it won't happen to me so no need to sell.
Keep an open mind and know when to take you chips off the table and know when to spot the next good deal.
Julia If you want to cut the leg's of your furniture to suit your slopping floor that's find by me.
I've seen this video and others similar to it - I love them, lol. I thought they really opened my eyes, and now I walk around feeling like I know a secret nobody else knows.
As to your question, yes, I think on a macro level we should be worried. We are driven to continuously reach higher goals, increase our profits year after year, and the best way for banks to do this is to lend more and more money (money which they don't have).
Ultimately they will reach a point where people are unable to repay their debts and the whole thing collapses.
My friend once gave me a quote which was something like "Anyone who believes that exponential growth can go on forever in a finite world is either a madman or an economist" which I totally agree with.
Yes, all money is created as debt and it is the central problem driving environmental destruction.
This is very bad, and that's why you should hold a lot of gold and silver for when the corrupt system finally crashes.
- Negatively geared
- Mortgage underwater
- Lost job
- Thinks prices will drop further - so why not get out now and buy back for a cheaper price
- Move cities
Just a little bit alarmist, don't you think? If you think this tsunami is coming, then yes - sell up and head for the hills. Dig a cave out of the rock and sharpen your bow and arrow.
But if you're expecting to be 'normal' for the next decade, then the debt you sensibly take on is that which you would otherwise have to pay out another form of 'dead money', being rent.
Every bubble is unique in it's origin and undoing.
The "normal" of the last couple of decades is not normal at all, it was a massive credit bubble.