The Coming "Retirement Crash" (Part 1)

Think the Market have been tough lately?  Only foreplay compared to the larger picture.

What most lack is the follow-thought thinking about what happens to government transfer payments and Social Security when the market enters a protracted Bear.

Everything going on in the world around you is still in pretty good condition.  And as we mentioned in last weekend’s report, container traffic from Asia is actually up a good bit compared with year-ago levels, so the end of the world isn’t here.

And even Monday of this week after the Dow had dropped more than a thousand points, the Baltic Dry Shipping Index was still in the mid 900’s.  This is an index which had been 40 percent lower in 2009.

There is no point wishing for a lower market, it’s baked in the cake.

Around Peoplenomics, though, the next problems becomes our focus.  And that NEXT set of PROBLEMS will be what happens in the event the long wave economic outlook which says this is merely the start of the Second Depression works out to be true?

Coffee, a few headlines, and charts.  Then  we’ll shovel into the “grim stuff.”

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Comments

The Coming "Retirement Crash" (Part 1) — 6 Comments

  1. Btw, while China’s stock market does not have that high of a market cap their reserve holdings are substantial

  2. Yes China may not be able to take down the markets. However to defend their markets selling treasuries has begun, on phone so providing the link is hard. My train of thought after reading that would be as a major investor that China is where or what would you do with all their holdings.

    If I were them exiting treasuries prior to the fed raising rates. Why keep buying their stocks when they are so over valued? Sell treasuries and buy up strategic companies to make China more dominant than it already is in manufacturing. That would send non Chinese markets higher but when they control more assets manufacturing they can work towards raising their currency and allow their people a higher quality of life.

    Who knows its all speculation

  3. Marduk & sons plan 1 (1930)

    1. Find a boogie man, use propaganda (Hitler)
    2. Crash the economy
    3. Start a war
    4. Make a lot of cash

    Plan 2
    1. Find a boogie man, use propaganda (Putin, IS)
    2. Crash the economy
    3. Start a war
    4. Make a lot of cash

    Plan 3
    You get the idea by now.

  4. Good Morning, George.
    When TSHTF and prescription drugs are mostly unavailable for anti-depressants, anti-biotics, and pain-killers, I think many of us will be coping with homemade remedies. I have to laugh when I listen to commercials for sleep aids, for instance. They list all these side effects such as temporary amnesia, sleep paralysis, suicide, etc. A simple fix would be smoking a joint. No side effects except a goofy smile and tendency to eat more ice cream.
    Colloidal silver can easily be made as a substitute for anti-biotics.
    Marijuana butter baked into cookies taken after dinner is already about the best pain-killer you can get.
    Those of us kept artificially alive now with anti-rejection drugs, chemo-therapy, AIDS medication and things like that, will, of course, die off. But, the hardier ones will be OK.
    The demise of the pharmaceutical industry just might end up being the best news for our public’s health.
    Hydro-ponics gardens and chicken coops in every apartment building in the cities, and gardens in yards, could provide food for the majority.
    Taxing the robots like workers could help out the cash flow to the gov’t. quite a bit, I figure. That is a great idea of yours, IMHO.
    “Live Like the Amish” may well become a popular slogan. If so, I will look forward to TEOTWAWKI.

    • Yeah, per the article this AM we can’t be sure which wave count will work out yet, but a low in either the 1812-1820 range, or 1,740 could set up a fifth wave rally of 18 months or longer and in that time, we will be doing our dead level best to arb out of any remaining assets and be ready for the cuts in entitlements and SS (which is not an entitlement, but something we all buy here in the Insurance at Gun Point economy) which will have to come when things start rolling down hill either in 2016 or 2018. In the meantime, living in a “free state” does have something to be said for it.