We are headed for disaster or an opportunity are you prepared?

The last disaster the saw Dow plunged all the way to 6,500 and the Standard & Poor’s 500 collapsed to just below 700 followed by  the All Ordinaries here in Australia which plunged to 3,000 points.

What is interesting in the last 12 years we had 2 massive stock market crashes it’s happening every 6 years 2002 recession  2008 Recession 2014 behold the future.

Why have I been so bearish? Because governments and central banks around the world have borrowed, printed, and spent far too much over the past few years bailing out anyone and everyone.

It stopped a massive meltdown in global capital markets but for how long? the PRIVATE credit crisis has turned into a massive SOVEREIGN credit crisis.

Ask yourself “Who now controls the credit markets who are these people that own the printing press and what is their plan?

They have nationalised the debt through bailing out the financial companies that were about to fail a failure would’ve shut down the Global credit markets overnight remember those companies

American Insurance Group, Citgroup, Fannie Mae, Freddie Mac, Ginnie Mae and much more.

Who really knows what that end figure is how many Trillions have been spent to rescue them we will never know through their accounting rules of offsetting debt not marking it to the market the real loss is never exposed.

Now, the next stage of the crisis is taking down country after country, bond market after bond market, and even government after government!

European bond markets are in free fall from Spain to Belgium to Hungary to Italy and Greece. France is on the verge of losing its AAA rating, and  Germany the stronger nation can’t seem to find investors for its bonds it’s causing borrowing costs and debt costs to rise, pretty soon they won’t be able to meet the interest payments on the debt.

New news coming out of Belgium and Austria has crushed their bonds And now the bailout of bankrupt Belgian bank Dexia may fall apart, which just could hurt France’s AAA rating and then who else does t hurt?

We have seen the collapse of MF Global a global derivatives broker who were also a primary dealer in treasury securities they are the 8th largest bankruptcy I the US.

Then more warning signs of global manufacturing and service sector activity slowing as China confirmed this last week releasing PMI at 48 below the minimum level of 50.

The last time these indicators were going haywire like this was a warning sign of a recession.

There are lots of opportunities in a recession that’s why I love the stock market it’s the only place I know of,

where you can make money on a falling asset so collapses like Bear Stern, Lehmann Brothers, American Insurance Group, Fannie Mae ect that saw their shares fell to pennies on the dollar in just a few months meant there was huge profits for those that bought the insurance policy’s, that invested on the opposite side. Ah time to pay attention and watch what the smart money is already doing yep betting on the downside again.