Via Mark St.Cyr,
Once again we are breaking records on a near weekly basis. Week after week and sometimes daily new never before seen in the history of financial markets record prints. Yet, business people across the spectrum don’t feel it, nor are they buying it.
Should one be worried about this conundrum? Financial mavens say no. In earnest, most seem to insinuate one should “Just buy the all time highs and sleep like a baby.” Then again, that’s what they say all the time do they not?
So what is someone to do that doesn’t believe the hype or the meme “it’s different this time” and can’t get that feeling out of their gut for they know – it truly never is?
You pay attention to when implementations seem to be appearing on a near regular basis that can separate you from your money with, or by the force, of law. e.g., The “Gates” Are Closing: SEC Votes Through Money Market Reform
You don’t sit down and draft this stuff up when everything is just ducky. You do it when you know or believe: If this shite hits the fan – its gonna get a whole lot worse even faster.
One of the (and I do mean the) most ominous signs I have seen over the last few years where if something were to go wrong the very place that is supposedly the safest in most people’s eyes and where a great bulk of ordinary people’s money is parked; was just quietly approved permission that in the event they deem as “a panic” (my word not theirs) they will put up gates. i.e., Separate you from your money.
This seemingly inconsequential event as is being portrayed by the under reporting of it through out all the media is absolutely breath-taking. The vast majority of people have absolutely no clue, and for all intents and purposes appear to not want too either. This is where things can go bad very, very, quickly in my opinion.
The troubling fact that gives this issue credence as the one you should pay close attention to, is when you also hear in concert heads of state from not only other countries but right here at home where the tenor and tone starts to ring tones of “bail in” i.e., Bail out was how the banks got your money via you tax dollars. Bail in will be how the banks are going to get your money via your deposits. That’s what surely is being proposed or considered should another crisis occur and the banks need to be bailed out – again.
“But they told us they wouldn’t do it again with tax payer dollars!” I can hear you say. Well, I can hear the legal ease laced argument now: “They used depositors dollars, not tax payers. After all – depositors knew the risks that money in a money market account wasn’t really the same as cash in the bank! That’s why we feel comfortable with this bail in approach.”
Maybe some of you reading this understand the difference, however I’ll argue the vast majority that have money in money markets have absolutely no idea let alone they were just legally put behind a gate if need be.
As far as they’re concerned if the markets go haywire, they think they’ve played it safe. You watch the moment in today’s social media fueled populace the hysteria that will take off the moment just a few realize they can’t get their money. If that happens all, and I do mean all bets are off.
Remember that pesky little thing that was drilled into everyone’s head as being the root cause of everything that happened during the crisis? It was a thing called leverage, and too much leverage was a very bad thing.
Via Mark St.Cyr,
Once again we are breaking records on a near weekly basis. Week after week and sometimes daily new never before seen in the history of financial markets record prints. Yet, business people across the spectrum don’t feel it, nor are they buying it.
Should one be worried about this conundrum? Financial mavens say no. In earnest, most seem to insinuate one should “Just buy the all time highs and sleep like a baby.” Then again, that’s what they say all the time do they not?
So what is someone to do that doesn’t believe the hype or the meme “it’s different this time” and can’t get that feeling out of their gut for they know – it truly never is?
You pay attention to when implementations seem to be appearing on a near regular basis that can separate you from your money with, or by the force, of law. e.g., The “Gates” Are Closing: SEC Votes Through Money Market Reform
You don’t sit down and draft this stuff up when everything is just ducky. You do it when you know or believe: If this shite hits the fan – its gonna get a whole lot worse even faster.
One of the (and I do mean the) most ominous signs I have seen over the last few years where if something were to go wrong the very place that is supposedly the safest in most people’s eyes and where a great bulk of ordinary people’s money is parked; was just quietly approved permission that in the event they deem as “a panic” (my word not theirs) they will put up gates. i.e., Separate you from your money.
This seemingly inconsequential event as is being portrayed by the under reporting of it through out all the media is absolutely breath-taking. The vast majority of people have absolutely no clue, and for all intents and purposes appear to not want too either. This is where things can go bad very, very, quickly in my opinion.
The troubling fact that gives this issue credence as the one you should pay close attention to, is when you also hear in concert heads of state from not only other countries but right here at home where the tenor and tone starts to ring tones of “bail in” i.e., Bail out was how the banks got your money via you tax dollars. Bail in will be how the banks are going to get your money via your deposits. That’s what surely is being proposed or considered should another crisis occur and the banks need to be bailed out – again.
“But they told us they wouldn’t do it again with tax payer dollars!” I can hear you say. Well, I can hear the legal ease laced argument now: “They used depositors dollars, not tax payers. After all – depositors knew the risks that money in a money market account wasn’t really the same as cash in the bank! That’s why we feel comfortable with this bail in approach.”
Maybe some of you reading this understand the difference, however I’ll argue the vast majority that have money in money markets have absolutely no idea let alone they were just legally put behind a gate if need be.
As far as they’re concerned if the markets go haywire, they think they’ve played it safe. You watch the moment in today’s social media fueled populace the hysteria that will take off the moment just a few realize they can’t get their money. If that happens all, and I do mean all bets are off.
Remember that pesky little thing that was drilled into everyone’s head as being the root cause of everything that happened during the crisis? It was a thing called leverage, and too much leverage was a very bad thing.
Read the whole thing here http://www.zerohedge.com/news/2014-07-27/forget-what-they-say-and-watch-what-they-do
Once again we are breaking records on a near weekly basis. Week after week and sometimes daily new never before seen in the history of financial markets record prints. Yet, business people across the spectrum don’t feel it, nor are they buying it.
Should one be worried about this conundrum? Financial mavens say no. In earnest, most seem to insinuate one should “Just buy the all time highs and sleep like a baby.” Then again, that’s what they say all the time do they not?
So what is someone to do that doesn’t believe the hype or the meme “it’s different this time” and can’t get that feeling out of their gut for they know – it truly never is?
You pay attention to when implementations seem to be appearing on a near regular basis that can separate you from your money with, or by the force, of law. e.g., The “Gates” Are Closing: SEC Votes Through Money Market Reform
You don’t sit down and draft this stuff up when everything is just ducky. You do it when you know or believe: If this shite hits the fan – its gonna get a whole lot worse even faster.
One of the (and I do mean the) most ominous signs I have seen over the last few years where if something were to go wrong the very place that is supposedly the safest in most people’s eyes and where a great bulk of ordinary people’s money is parked; was just quietly approved permission that in the event they deem as “a panic” (my word not theirs) they will put up gates. i.e., Separate you from your money.
This seemingly inconsequential event as is being portrayed by the under reporting of it through out all the media is absolutely breath-taking. The vast majority of people have absolutely no clue, and for all intents and purposes appear to not want too either. This is where things can go bad very, very, quickly in my opinion.
The troubling fact that gives this issue credence as the one you should pay close attention to, is when you also hear in concert heads of state from not only other countries but right here at home where the tenor and tone starts to ring tones of “bail in” i.e., Bail out was how the banks got your money via you tax dollars. Bail in will be how the banks are going to get your money via your deposits. That’s what surely is being proposed or considered should another crisis occur and the banks need to be bailed out – again.
“But they told us they wouldn’t do it again with tax payer dollars!” I can hear you say. Well, I can hear the legal ease laced argument now: “They used depositors dollars, not tax payers. After all – depositors knew the risks that money in a money market account wasn’t really the same as cash in the bank! That’s why we feel comfortable with this bail in approach.”
Maybe some of you reading this understand the difference, however I’ll argue the vast majority that have money in money markets have absolutely no idea let alone they were just legally put behind a gate if need be.
As far as they’re concerned if the markets go haywire, they think they’ve played it safe. You watch the moment in today’s social media fueled populace the hysteria that will take off the moment just a few realize they can’t get their money. If that happens all, and I do mean all bets are off.
Remember that pesky little thing that was drilled into everyone’s head as being the root cause of everything that happened during the crisis? It was a thing called leverage, and too much leverage was a very bad thing.
Via Mark St.Cyr,
Once again we are breaking records on a near weekly basis. Week after week and sometimes daily new never before seen in the history of financial markets record prints. Yet, business people across the spectrum don’t feel it, nor are they buying it.
Should one be worried about this conundrum? Financial mavens say no. In earnest, most seem to insinuate one should “Just buy the all time highs and sleep like a baby.” Then again, that’s what they say all the time do they not?
So what is someone to do that doesn’t believe the hype or the meme “it’s different this time” and can’t get that feeling out of their gut for they know – it truly never is?
You pay attention to when implementations seem to be appearing on a near regular basis that can separate you from your money with, or by the force, of law. e.g., The “Gates” Are Closing: SEC Votes Through Money Market Reform
You don’t sit down and draft this stuff up when everything is just ducky. You do it when you know or believe: If this shite hits the fan – its gonna get a whole lot worse even faster.
One of the (and I do mean the) most ominous signs I have seen over the last few years where if something were to go wrong the very place that is supposedly the safest in most people’s eyes and where a great bulk of ordinary people’s money is parked; was just quietly approved permission that in the event they deem as “a panic” (my word not theirs) they will put up gates. i.e., Separate you from your money.
This seemingly inconsequential event as is being portrayed by the under reporting of it through out all the media is absolutely breath-taking. The vast majority of people have absolutely no clue, and for all intents and purposes appear to not want too either. This is where things can go bad very, very, quickly in my opinion.
The troubling fact that gives this issue credence as the one you should pay close attention to, is when you also hear in concert heads of state from not only other countries but right here at home where the tenor and tone starts to ring tones of “bail in” i.e., Bail out was how the banks got your money via you tax dollars. Bail in will be how the banks are going to get your money via your deposits. That’s what surely is being proposed or considered should another crisis occur and the banks need to be bailed out – again.
“But they told us they wouldn’t do it again with tax payer dollars!” I can hear you say. Well, I can hear the legal ease laced argument now: “They used depositors dollars, not tax payers. After all – depositors knew the risks that money in a money market account wasn’t really the same as cash in the bank! That’s why we feel comfortable with this bail in approach.”
Maybe some of you reading this understand the difference, however I’ll argue the vast majority that have money in money markets have absolutely no idea let alone they were just legally put behind a gate if need be.
As far as they’re concerned if the markets go haywire, they think they’ve played it safe. You watch the moment in today’s social media fueled populace the hysteria that will take off the moment just a few realize they can’t get their money. If that happens all, and I do mean all bets are off.
Remember that pesky little thing that was drilled into everyone’s head as being the root cause of everything that happened during the crisis? It was a thing called leverage, and too much leverage was a very bad thing.
Read the whole thing here http://www.zerohedge.com/news/2014-07-27/forget-what-they-say-and-watch-what-they-do
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