Greek/European crisis and contagion

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Wendy S. Delmater's picture
Wendy S. Delmater
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Joined: Dec 13 2009
Posts: 1988
Greek/European crisis and contagion

It seems to have started over in Europe. Dr. Chris issued an alert and says he is taking cash out in cash of closed banks. Here are some healines:

World faces years of social unrest as economies falter

Eurozone on the Brink of Disaster: ‘It’s All Over. The Government is About to Collapse’(Greece)

We like to keep an eye on this page - the Stock Futures of Major World Indexes (Bloomberg)

So I guess you should gas up your vehicles, and stock any last minute items. Looks like we are in for rough waters.

SagerXX's picture
SagerXX
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Joined: Feb 11 2009
Posts: 2252
Note to self

Top of all the gas containers (recently run down in the NE storm)...

Jbarney's picture
Jbarney
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Joined: Nov 25 2010
Posts: 233
CM's Alert

Hi,

 

I trust CM's view, and am very interested to read his specific thoughts on the coming troubles in Europe.  I HOPE that he does as was done back during the Japanese Earthquake fallout, he allows non paying members to examine/read his perspective fully.  I understanding paying members get the benefit of information first, but hopefully the rest of us get a chance to digest Chris's concerns.

Not criticizing the paying/nonpaying system here, as I certainly have gotten a mountain of information and I am not a paying member.  Its just with the alerts, I'd like to read CM's reasoning.

 

Jason

Quercus bicolor's picture
Quercus bicolor
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Joined: Mar 19 2008
Posts: 470
Jbarney wrote: Hi, I trust
Jbarney wrote:

Hi,

I trust CM's view, and am very interested to read his specific thoughts on the coming troubles in Europe.  I HOPE that he does as was done back during the Japanese Earthquake fallout, he allows non paying members to examine/read his perspective fully.  I understanding paying members get the benefit of information first, but hopefully the rest of us get a chance to digest Chris's concerns.

Not criticizing the paying/nonpaying system here, as I certainly have gotten a mountain of information and I am not a paying member.  Its just with the alerts, I'd like to read CM's reasoning.

Jason

Lacking the public availability of this information from Chris (perhaps it's coming but it's not here yet), it would be interesting to pool together and see what we can come up with in terms of specific steps to take (and perhaps some analysis of the crisis).  It would be interesting to compare what we come up with to Chris' thoughts if he chooses to make them public.

I'll start.  First, Chris publicly mentioned getting extra cash out o the banks.  Safewrite and Sager mentioned topping of gas tanks, buying last minute items, etc.  

To that I would add:

  1. keep investing in community.
  2. buy some extra canned goods every time you're at the grocery store.  Stop by the farmers market, buy and store some cabbages, potatoes, etc.
  3. I'm a bit less certain about investment advice.  I'm guessing it includes holding onto gold/silver, but since prices may dip for a few months or so, liquidate any amount you might need to have enough cash for the next few months.
  4. Make sure you have enough fuel for backup heating/cooking.
  5. Tune up your bicycle.

Any others?

Steve

Jbarney's picture
Jbarney
Status: Silver Member (Offline)
Joined: Nov 25 2010
Posts: 233
Preps...

If the banks do shut down, cash would be essential.  I talked to my business office today, just to see....and there is no way for people to get paid if the banks were to shut down.  Our teacher's contracts dictate that we all get our checks electronically deposited, and even if we had a paper check, not sure there would be much we could do with it.  So cash is key.

Filling up the gas tanks is also going to be a must.  Never no when you might have to travel.

Buying extra food makes sense, especially not knowing how long it may last.  Don't have to worry about using your cash on scarce food if you already have plenty ready to go.

Jason

Poet's picture
Poet
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Joined: Jan 21 2009
Posts: 1892
Dry Tinder Plus Gasoline = Special Alert

The nuclear radiation issue was a major, overwhelming concern. Chris was right in opening that information up for all. I was one of those who called for it.

However, I don't think that making it free this time is warranted. He's already made his suggestions in the first articles in the "What Should I Do?" series, and given the rest of us some basics on what he is doing:

Quote:

"That said, tomorrow I am going to get more cash from the bank to hold in reserve until things clear up (or break down). The idea here is that cash will be a very useful commodity to hold and then deploy should the banking system suffer some sort of a freeze-up for any length of time."

Getting some cash out of the bank. Not all the cash, just some (your call on how much). And making last minute preps, etc.

If you're still in stocks and bonds by this point, you should just subscribe. You're gambling and you know it. You got the money to do it. It's $30 and lasts for a month.

That said, think about what's going on:

1. The Greek government wants to hold a public referendum on the bail-outs (and austerity measures). If the bail-outs are rejected, either the Greeks will get free bail-out money, or they'll default. The referendums are likely to be held December 4 or 5. It's just been announced that payouts from the European bail-out loans to Greece have been halted until after that time, to tighten the screws on the Greeks.

2. Portugal, Ireland, and Spain are thinking about wanting to stop some of their austerity measures, too. You think they don't see Greece getting favorable terms, including making bondholders of their debt take major losses?

3. Think not only of potential bond defaults, but the TRILLIONS in derivatives bets going on, much of which are based on sovereign bonds... Bonds held by banks, pension funds, etc. What happens when bondholders take massive losses? Will there be cascading losses as other assets are sold to cover those losses and new investments in risky assets are not being made? What happens when insurance companies and banks have to make good on derivatives bets?

Remember how Bank of America recently transferred $53 TRILLION in derivatives liabilities from its Merrill Lynch unit to its main depository unit where derivatives contract holders are first in line to take assets (including deposits) and this transfer was over the objection of the FDIC, which insures some $1 trillion in BofA deposits with it's $20 to $40 billion in reserves? Remember how JP Morgan Chase has done something similar? If it wasn't necessary, why would BofA do it?
Source: http://www.zerohedge.com/contributed/federal-reserve-and-bank-america-initiate-coup-dump-hundreds-billions-dollars-losses-ame

4. The Greek nation's top military heads of the various armed forces branches just got sacked last night. Why would the current government do this?

I don't have to be a subscriber to see why an alert was issued. There's been so much dry tinder for months (you knew about it) - and now someone's poured gasoline on it. You'd be a fool not to put some distance between you and the potential conflagration. And if Chris Martenson is wrong? You can always put the money back in the bank and use the extra jerry-cans of fuel you bought. (The farewell visit to your favorite hooker - and the tender words the two of you shared, and the extra tip you gave - cannot be undone, however.)

Poet

Quercus bicolor's picture
Quercus bicolor
Status: Gold Member (Offline)
Joined: Mar 19 2008
Posts: 470
Those with stocks and bonds might want to subscribe
Poet wrote:

Getting some cash out of the bank. Not all the cash, just some (your call on how much). And making last minute preps, etc.

If you're still in stocks and bonds by this point, you should just subscribe. You're gambling and you know it. You got the money to do it. It's $30 and lasts for a month.

I'll agree with you Poet.  I don't see any reason Chris needs to make this public. For those of us without many stocks and bonds, he's already told us what to do publicly.  If we have stocks and bonds, it's worth paying $30 for a month to get the more nuanced information we will need in that case.  Those of us with gold and silver and not much cash might want to consider selling enough of it to beef up our cash supply.  That way we won't be forced to sell into the temporary and possibly significant silver/gold price decrease this event might cause.  I'm not currently a subscriber, but have paid the $30 for a month to see a report that seemed relevant to me.

Jbarney's picture
Jbarney
Status: Silver Member (Offline)
Joined: Nov 25 2010
Posts: 233
Good Points

Poet, your organization of the information is pretty close to mine, if not more detailed.  With respect to Chris opening up the reasons for his alert to all, it is just a wish on my part.  He doesn't need to do it.  I know that.  I just see his role as some what unique, and I see an "alert" as a special situation that implies possible major troubles ahead.

You are right.  Anyone watching the news can connect the dots easily at this point in time.  Just last week I can remember sitting back and thinking about the meetings designed to solve this situation in Europe and the stock market rose like crazy.  I thought it was a bit odd, to say the least.  Then I sat back and thought about how soon CM would issue an alert, then hopefully, allow all to see his reasoning.

Just a hope on my part. 

An "alert" is a special situation.  Its a signal that in Chris's mind, alarms should be sounding for all of us.  I know.  I know.... if I really want to read his thoughts I should pay for them.  I just hope he sees fit to let us all see his reasoning....

 

Jason

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