Did you know… In September of 2008, according to the Treasury Secretary and the FED Chairman the world was just hours away from a global banking collapse. Banks began to lose confidence that the money they had on deposit with each other was not safe and the flow of funds between banks, the global system depends on, was rapidly breaking down. This spark originated in Europe, but because of the interconnectivity of the global banking system the spark can come from anywhere and the result will be the same. The 2008 crisis was a result of the global stock market decline. It caused assets held by banks to lose value. No assets meant that debts weren’t honored and monies deposited in those banks were gone.
Let’s take a look back at history – there’s a correlation to today. The 1920’s was one of the greatest periods in American history producing real wealth. The stock market was recording new highs every month and investors were wildly optimistic about the future.
Stock market investors took on more and more margin debt to buy stocks. When the market stopped going up and started to decline, margin calls forced investors to sell stocks. This led to more and more selling as the stock market crashed.
Look at today. Today, margin debt is at its highest level in history. Read that again. Over the last 50 years, margin debt is up over 150 times, from $4 billion to $683 billion!
Panic Panic Panic. The United States has had to deal with a number of banking crises during its history as a nation.
- The Panic of 1819.
- The Panic of 1837.
- The Panic of 1873.
- The Panic of 1907.
- The panic of 1933 when Roosevelt closed all the banks.
- The savings and loan crisis of the ’80s and ’90s.
- The financial crisis of 2008.
The list goes on and on.
As Treasury Secretary Paulson has said, another financial crisis is a certainty. Today the global banking system is in much worse financial condition than 2008 with far more debt. Give us another stock market decline and it will collapse. How can it be otherwise?
Only the most naïve would think a banking collapse is not possible. Is it probable? I believe that most of my readers know that is probable, and most of you also know what a bank closure would mean.
I have a question for you. Why haven’t we all acted to protect our families? My guess is that most of us either don’t know what can be done or feel the task is completely overwhelming, and it is. Where do you even start?
You can start here. I started Safe Future to help those of you that want to act but are not sure what to do.
20 years ago I figured out that I had to become an expert in three areas if I was going to protect my family:
- Wealth preservation in a great depression
- Health (how to hang onto this in a very stressful environment)
- Safety during a panic and economic depression
So I spent years researching and learning from the top experts in each area.
When you research, study, and think about something for 15 years you find out you know a thing or two. I’ve taken the steps to protect my family, and I want to share with you what I know so that you can too. I can’t stress this enough, it can happen anytime. We could be in a full blown panic tomorrow, next week, or in a month.
You can start protecting your family’s health, wealth, and safety by joining the Safe Future Group. With it you’ll also receive the latest news, updates and commentary to keep you ahead of events.