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How safe are your home, bank balance, job, and retirement funds during the financial meltdown during the next several years?
Fred Day
Jun. 27, 2007
The economy is moving towards a major showdown against first stagflation and finally deflation and depression. In this article we analyze how your home, bank balance, job, and retirement funds are affected by the financial meltdown.
Your home should be fine unless you have excessive debt. Debt serving for any household will be a major problem. The banks are in deep trouble. The banks will start going belly up from now, until 2012. The mortgage bonds, the borrowings by the private equity funds will be the biggest drag. At least five major banks will fail by end of 2010, making FDIC helpless. The high Federal deficit will not allow the Fed to help either. You need to take control of your money now.
Your job is the most crucial factor in this equation and struggle for survival during the financial meltdown. Most jobs will be affected. It may be a good idea to start a small home based business now using the Internet and so on.
Your retirement funds should be out from typical stockbrokers into self-directed trust funds that allow you to invest in almost all the financial instruments. You should be able to long and short. You should be able to hedge.
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