Stockmarket, Debt Mountain and Real Estate Worries?

I hope that you have enjoyed the new year celebrations and are now looking forward to what lies ahead in 2007.

Unfortunately, I am not very optimistic at all about the signs, I do see similarity with 1987 when I was in the investment business, as an experienced mid 30's player. We could do no wrong, stocks, shares and real estate values were all rising.

All the writers at the time were predicting continued growth, increased stock market performance and benefits for all. There were a few "doubters" but these were ignored as we all basked in success and increased wealth.

But we were all proved wrong, the young never want to learn from the older and wiser folk who know that for every boom there follows a bust. We just couldn't help ourselves with our graphs showing a "never ending" upward trend.

Now I see lots of similarity, I expect the people who lived through the 1929 crash, or who have studied it in detail will say the same. There is too much confidence and too much evidence of severe financial problems.

Look at how much debt there is in the USA and the UK, its unsustainable, but all supported on property values by a banking system desperate to lend more and more money so that they can keep their shareholders happy with endless growth!

In the late 1980's this is precisely what toppled Japan and their Banking system. Property has its own cycle, I am am firmly of the belief that this has already topped out in 2005!

Then we have the "wall of money" theory, which states that all the investments have to be invested in "something". But with blind panic that follows a crash investors just want out, at any price, even a loss. After all they have made some profits in the past. But they either bail, or hang on. Both loose.

But this time around we have Derivatives. This will magnify loses and create further debt and subsequent bankruptcy. When this happens we may well get a 1929 scenario.

So why am I telling you this when I should be building excitement? Well there are defences to a stock market and property crash. Its Gold Bullion, not gold dollar derivatives but real Bullion.

Check out my own federal reserve system at
Bullion Vault

This allows the switching between currency and solid gold based in London, New York and Zurich. Get an account now.

In addition, I am in negotiation with a far eastern country who will be able to trade in solid gold and allow deposits of solid gold which will attract a rate of interest, plus any future rise in the value of Gold. And there will be rise in value when the stock crash comes. This will become available within the next month or so.

So for now heed my worries. It may not happen now, or in the next week, but it is coming. All markets are too high, too many currencies are too high, and advisers are still wanting you to invest.
So have a think, see the signs for yourself and act.