Greek dilemma: preservation of family wealth in the light of coming changes.

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dchrys's picture
dchrys
Status: Member (Offline)
Joined: Jan 6 2009
Posts: 20
Greek dilemma: preservation of family wealth in the light of coming changes.

Dear all,

as a  greek and member of the CM community, I have learned to trust my "guts" for all the things that happening at global and local economy. This  helped me make some important decisions last year, like:

- pay off around 20% of my mortgage with part of my savings

- invest most of my remaining savings to precious metals

- delay buying of a new car and any other "luxuries"

- avoid use of credit cards and other consumer-loans

I now fear that life-changing events are coming our way, with Greece being in the spotlight. Possible outcomes are:

- Greece defaulting on its debt, with or without leaving the eurozone.

- Capital controls being enforced for greeks, to prevent bank runs

- Serious unemployment in the financial and services sector, as a result of mergers (I work as an employee of an IT service provider)

Although I haven't ever thought about local stockmarket, it is now in a multi-decade low, possibly going lower. Local journalists avoid any suggestions about stocks, being afraid that they may be proven wrong in very short time.

I need some advice from CM community members, that are more aware about markets:

- Are there any kind of companies that will survive or even benefit from the upcoming collapse ? Should I consider investing or even working for them ?

- What are good criteria for selecting stocks at this moment ? I am interested in long-term investment for dividends

- I have around 70000EUR of outstanding mortgage. I assume that if Greece leaves the euro, all internal debts will be converted to new currency. My loan officer is not aware of any term for currency change in the mortgage contract, as this was unthinkable 5 years before.

Any other piece of advice for wealth preservation is also welcome.Thanks in advance.

-=dchrys=-

compinthegroove's picture
compinthegroove
Status: Silver Member (Offline)
Joined: Nov 8 2009
Posts: 113
Re: Greek dilemma: preservation of family wealth in the ...

The mania in precious metals hasn't developed yet.  We're still in the early stages.  I don't know how much gold and silver you have, but that might be your ticket for paying off your mortgage later on.

osb272646's picture
osb272646
Status: Silver Member (Offline)
Joined: Mar 14 2010
Posts: 120
Re: Greek dilemma: preservation of family wealth in the ...

A few months ago, I read some interesting posts and blogs from people who had gone through the Argentenian collapse and others who had gone through the earlier Russian collapse.  Both of those events must have been gut wrenching for those going through them.   I suspect that if you google those subjects, you'll find a lot of ideas applicable to your own situation.  Most interesting was a forum where both Argentinians and Russians were advising Americans on how to handle their upcoming challenges.

My take from reading those accounts was that you have to take control of your own destiny, establish or get involved with a close network of neighbors and friends for a support and collaboration network.  Many of them found themselves operating in the underground economy.  The real economy was essentially gone.  Trusting your "gut" is a good place to start.  But you might have to move beyond your comfort zone to keep your head above water.

My business activities gave me a lot of exposure to Brazil, Venezuela and Mexico, where over the 30 years I was working down there, there were several economic dislocations, albeit not as severe as what happened in Argentina earlier in this decade.  The "early adapters" took steps to protect their assets by moving them to safer havens, in those days, the US.  I once encountered a Brazilian man in Zurich who claimed to have $50k worth of Brazilian cruzieros in the gym bag he was carrying.  He was going to put the money into a Swiss bank because he had become tired of watching his savings melt away.  A similar thing seems to be going on in Venezuela at this time.   These "early adaptor" people were villified as tax evaders, traitors, hoarders and such by their governments and the press.   Most citizenry saw their standards of living drop.  Some of these "early adaptors" might have been prosecuted for breaking currency laws, etc. but my impression is that they were not because all the big shots and politicians were doing the same thing at the time.

Some of us were taught to save for the future, live below our means, pay off our debts, and make sacrifices now so the future will be better.  Now it seems that the spendtrifts and the slackers are making fools of those who followed such a path, and are intent on taking all that away, to "equalize things".  This the real world.  It takes unending vigilence to fend for yourself in it.

 

 

 

 

 

 

 

 

elboertjie's picture
elboertjie
Status: Member (Offline)
Joined: Jul 7 2010
Posts: 4
Re: Greek dilemma: preservation of family wealth in the ...
osb272646 wrote:

 Most interesting was a forum where both Argentinians and Russians were advising Americans on how to handle their upcoming challenges.

Would you be so kind and share that forum name and address with us?

That can be very helpful to gain insights from other people's experiences to make contingency plans for our future.

Thanks

mooselick7's picture
mooselick7
Status: Silver Member (Offline)
Joined: Jan 22 2009
Posts: 192
Re: Greek dilemma: preservation of family wealth in the ...
elboertjie wrote:
osb272646 wrote:

 Most interesting was a forum where both Argentinians and Russians were advising Americans on how to handle their upcoming challenges.

Would you be so kind and share that forum name and address with us?

That can be very helpful to gain insights from other people's experiences to make contingency plans for our future.

Thanks

I had the same question.  As things play out, it seems clear more and more that the US is headed toward an Argentina/Russia style collapse.  I have been following Dmitry Orlov ( http://cluborlov.blogspot.com/ )and Ferfal ( http://ferfal.blogspot.com/ ) for awhile.  I found their books very useful at different levels. 

Also found these articles:

http://www.cepr.net/documents/publications/argentina_2002_01_31.htm

http://www.salon.com/news/opinion/glenn_greenwald/2009/03/26/comparisions

Good reads to understand how the game is being played out...

This Time is Different

Creature From Jekyll Island

Confessions of an Economic Hit Man

 

 

 

 

mooselick7's picture
mooselick7
Status: Silver Member (Offline)
Joined: Jan 22 2009
Posts: 192
Re: Greek dilemma: preservation of family wealth in the ...
elboertjie wrote:
osb272646 wrote:

 Most interesting was a forum where both Argentinians and Russians were advising Americans on how to handle their upcoming challenges.

Would you be so kind and share that forum name and address with us?

That can be very helpful to gain insights from other people's experiences to make contingency plans for our future.

Thanks

I had the same question.  As things play out, it seems clear more and more that the US is headed toward an Argentina/Russia style collapse.  I have been following Dmitry Orlov ( http://cluborlov.blogspot.com/ )and Ferfal ( http://ferfal.blogspot.com/ ) for awhile.  I found their books very useful at different levels. 

Also found these articles:

http://www.cepr.net/documents/publications/argentina_2002_01_31.htm

http://www.salon.com/news/opinion/glenn_greenwald/2009/03/26/comparisions

Good reads to understand how the game is being played out...

This Time is Different

Creature From Jekyll Island

Confessions of an Economic Hit Man

 

 

 

 

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