OTCPK:PGMFF - Post by User
Comment by
tdsbon May 26, 2021 4:39am
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Post# 33265983
RE:RE:RE:RE:What Bear Market
RE:RE:RE:RE:What Bear MarketWelchspring, The Federal Reserve is trapped by the debt bomb they have created. They can't raise rates because they must service the debt guerilla in all three levels of government, and then of course there is the personal debt that the public carries. I find the Hedge funds to be particularly scary, Hedge Fund C has a holding in Hedge Fund B, while Hedge Fund A has a holding in B and C, and so on. The interrelations are so complicated that it is difficult to know what they have and they are intertwined and honeycombed, when a big one starts to unravel they will all go down together.
Then there is the huge amount of stocks bought with margin money. When the market starts to fall the margin accounts receive notification that they must cover their losses. In The US there could be one million margin accounts, and a trillion dollars lent out through brokerage accounts. In 1929 it was forced selling that killed the market, when the margin accounts got the call down she went, and the buyers didn't step into the breach. This time it is much worse, The US is a debtor nation not a creditor nation like the 1930's, and they don't have honest money in the form of a gold backed dollar like they did then.
I could go on and on, just thought I would let you know that I too see the danger but I believe we will muddle along until September or October which is usually the time for Big corrections. If not I am well diversified and have stayed out of debt.
The crypto's are a foolish investment vehicle because all a government needs to do is pass a law saying they can't be used for currency. The Federal Reserve is not going to let Bitcoin and Dogeecoin take away their piggybank. The Fed at some point will create their own cryptocurrency backed by Gold, or Silver, that they will control.
For now I will just keep trading, and I know that when "The Shot That Is Heard Around The World" happens, it will be very unpleasant to say the least.