Warning! Fiscal Hurricane Approaching!

[4dsc]

http://www.safehaven.com/article-4739.htm

I wonder whats really going to happen this year??

In a previous article entitled "The Ominous Warnings and Dire Predictions of World's Financial Experts - Parts 1", (Part 1 of 6) we learned what was probably in store for us short-term and in the next few years.

Martin Weiss, Chairman of Weiss Ratings, Inc. and author of 'The Ultimate Safe Money Guide,' has said:

1. Get out of the stock market.

2. Put up to 60% into short term treasury bills.

3. Put up to 20% in 3-5 year treasury notes.

4. Put 10% to 20% into gold bullion and/or gold mining shares (Editor's Note: and other precious metals and energy stocks and/or the warrants of those that expire in more than 3 years) depending on how bullish you are on this sector.

5. Put 10% to 25% in one of a variety of hedge funds depending on how aggressive you want to play the market.

6. Be patient and wait for the bottom of the stock market and then buy with both hands but beware of false bottoms. Include gold, etc in such a portfolio because gold is negatively correlated with other asset classes. It is a great way to balance your portfolio.

7. Pay off all your debts including the mortgage on your home.

8. If you are mortgaged to the hilt then sell NOW and rent for a few years and then buy back in, if you wish, once prices have dropped (and they will!) or once the danger of the decline has blown over".

[Viva_La_Revolution]

1. #8 I finally convinced my ex of this

He's getting a divorce, and she's buying out his portion of the house. He was planning on going out and getting into a new one! I've finally convinced him to wait until the bubble bursts, and prices go back down to reasonable.

Showed him the rates of foreclosure lately, then he went online for about an hour checking out current prices. He was convinced.

[murray hill farm]

2. What is your take on this, 4dsc?

i have been seriously thinking along these same lines, but putting more than 20% into gold bullion. i have just sold my house in mexico..and have thought some about selling my house in georgia...and buying up...but now that i think about what i have just read..may stay in the house that i have...it has no mtg..or just sell it now...and wait to see what happens before i buy up..what do you think?

[4dsc]

3. I don't really know..

I am mortgaged to the hilt but have a good paying job.. Sit tight for now.. If the housing market sinks really bad, I'm screwed, but hopefully not out of my home.. Remember, lenders learned their lessons in the 1980's when the housing market crashed.. Instead of kicking people out, they learned to renegociate the amount owed on the house..

but only time will tell..

[katty]

4. #8-good planNOW-#7 pay off as much as you can

[kineneb]

5. well, none of these will work for us

but we just went through the "counseling" required to file for ch. 7. But at least we will be out of debt.

that "counseling"...
What a joke...I had already run our figures on a spreadsheet and knew as much as the counselor...in fact I had to tell him that disability payments are Monthly. Period. Not by the 52 week calendar. Just Monthly. Then I had to inform him that 1. saving money with a monthly income of $1199 is a joke, and 2. recipients of Medicare/Medicaid combo are not allowed to have cash assets/savings above $3000 (2 people). Sheeesh.

[bemildred]

6. An excellent recipe for a false sense of security. nt

[Warpy]

7. T-bills may default. The government is nearly bankrupt.

Personally, I doubt the stock market will do anything but a slow slide. The housing market is where the bust will come, if it comes. It's what the stock market was in 1929, the biggest nest egg of the most people and representing the biggest debt burden for most families. It's also hyperinflated, while the stock market has been flat since 1998 and inflation has nearly caught up to it.

When you have hyperinflation supported by debt, that's where you look for the next bust. It is inevitable.