In fact, the U.S. dollar is becoming debased on an unprecedented scale. And the printing presses are running overtime, which will ultimately result in inflation.
Led astray like Lemmings to the sea, the masses typically ‘buy’ stocks or mutual funds and ‘hold’ them, hoping to see them appreciate in value because we have always been told to do so. But we have now seen that the ‘buy and hold’ mentality can be disastrous for your portfolio.
Hedge Funds were viewed as another popular source for retirement funds that could appreciate. However, Hedge Funds have taken a HUGE bath in recent months. Many accounts were or are down anywhere from 30-70%, which has caused a run on cash from frightened investors…
In November 2008 alone, over $100 Billion in cash was needed by Hedge Funds to pay back investors who pulled out their money. Hedge Funds were selling billions of dollars of securities to meet demands for cash from their investors and their lenders, contributing to the stock market’s volatility. Some Hedge Funds have even been hoarding cash in preparation for another wave of withdrawal requests.

Unfortunately, the masses are uneducated, scared, and downright clueless as to how they can both build and preserve their wealth in this market environment.
So, as the mess unfolds, over-spending and under-saving continues on all levels – including personal, corporate, national, and internationally among governments.
Instability can be seen all around us. This pyramid has became so increasingly inverted and inherently unstable that recent news is full of Wall Street raiders lining their pockets with bonuses as the rats abandoned ship…

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The first $125 Billion of the $700 Billion TARP Bailout money went to banks in the Fed system, of which 90% was used to award executive and employee bonuses.
Yet, as white collar was saved, blue collar were scrutinized for making too much money. The Big 3 auto-makers dominated the news in December 2008, as the powers that be moved to the next level in breaking up the unions.
Another symptom that a financial crisis was inevitable is the fact that, like crack cocaine to an addict, credit cards has been pushed upon practically anyone possessing a pulse, with the full knowledge that most would spend themselves into financial ruin.

Due to the masses scaling back during the holiday season, legal loan sharking techniques are now being used to seduce people into buying more items with a new array of easy credit and “worry about payments later” promises. The problem is that many offer no grace period on repaying the debt. The minute you purchase an item, the 18-30% interest rate charge begins ticking. So, the madness continues…
And the same is true for the “sub-prime mortgage” mess. The lending institutions knew that people were overextending themselves, but these people were still given loans that the vast majority couldn’t handle, once the inevitable increase in interest rates kicked in.
A new wave of foreclosures will begin as property values continue to plummet.
People owe more than the current value of the homes they live in. Thus, the American Dream of owning a home has become a dream of the past for many…

And now, the commercial real estate market is also starting to crumble, so we may see yet another wave of bank failures and bad loans coming!

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