Financial Crisis Of 2008
Discover a revolutionary Forex Robot Trading System. Try this cash printing Forex Signal Service from heaven. Learn Commodity Trading! We live in troubled times, and conventional wealth-building concepts are now virtually extinct. 95 million Americans – about half of the adult population – own stocks directly or indirectly through mutual funds or retirement plans.
Most have plummeted in value in year 2008 and a global recession is likely to continue for the next 12 to 24 months. The financial markets have been exceptionally turbulent, and the economic data has been disappointing at best. The massive stock market losses have also had a major rippling effect on our economy, with job losses are cutting into income growth, and taking a massive toll on consumer confidence.
The market 2008 Crash has proven how fragile the current system really was and we don’t have to look far to see signs of just how bad things are for the U.S. stock markets. The Dow reached a high of over 14,000 in 2007 and then rebounded below 8,000. It now hovers in ranges between 7,500 and 9,000 which is a 40% loss in a little over twelve months!
Estimates of the losses for those who were invested in the stock markets last year are currently at $8.5 Trillion and growing! There will surely be an oversold rally at some point, but we may not see a true recovery for many years.
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.
