Posted on 10/04/2008 8:44:27 AM PDT by Candor7
What is your suggestion for someone who has become 90% liquid (USD) during the last year? Where does one find a safe haven these days?
The FBI is all over AIG.As we speak. Heads are gonna roll.
Take money and place it in an offshore account in a national bank that is highly regulated. I did that in Canada, and also moved our stock portfolio there as well. The stocks I hold are are highly stable in this environment. If thats not possible, you have to pick a US bank that has a high chance of survival by not having too much sub prime exposure, or a penchant for buying out failing banks.
The three strongest US Banks appear to be Wells Fargo, Bank of America, and JP Morgan Chase. But there are no gurantees.
However I would be looking at a Bank like Barclays as well.
But the best would be to go off shore, say to China,India,Australia, Brazil or Canada. It is difficult to do in Canada without a Canadian Social Insurance Number. But in the other countries , you might be able to set up an account on line and electronically transfer the funds if you wish. You have to check the banking rules of the destination account, or residency and their reporting requirements. Some require a government ID number, others may not. You still pay income tax as a USA resident ( Income Earned Abroad), but the funds are much more secure in a regulated banking system.You can hold your liquidity in whatever currency you select. Mine is in USD right now , in treasury bills. But I may change that also depending on what happens, to Canadian Dollars.
Our portfolio is 50% stock and 50% cash. I may buy gold with our cash. The next week will allow that decision.
Good Luck.
Just post I don't know c+++ about supply and demand and you would be better off. Greed has aways been the driving force.
Ping...
They want to play “gotcha”. And they are usually libs.
I am not going to do your homework. You do your homework.
But one little hint. CHEAP MONEY BY THE FED!
Why cheap money by the FED? To hold up the FM twins, the banks that went over the edge, etc., but of course the builders also got in on the cheap money and the same banks that went for sub prime loaned money to the building industry because they had to get themselves a better balance sheet position, which they did by selling said loans to the FM twins and foreign banks.
In other words, in trying to get out of the loop, it fed on itself.
Read up on derivatives, why AIG mortgage insurance made it possible for banks to show reserves as being better than they really were and why this broke AIG.
Please do your homework and quit asking questions when the answers are so easy to get in thousands more words and detail than I am able to type.
Cash is King right now.>>>>>>>>>>
Agreed, but not for long as currencies will likely devalue quickly.
Enlightened article and thread. I'll go one step further: Government subsidization is King right now. Worldwide
What is your suggestion for someone who has become 90% liquid (USD) during the last year? Where does one find a safe haven these days?>>>>>>>>>>>>>>>
Take money and place it in an offshore account in a national bank that is highly regulated. But the best would be to go off shore, say to China,India,Australia, Brazil or Canada....
AS A BRAZILIAN I can tell you guys... put your money in a savings account with any registred Brazilian Banks because in Brazil saving accounts have a assurance from the Brazilian Government up to a limit.
Out of that prefer to work with the Government Banks like Bank do Brazil and Caixa Economica Federal because they belong to the government but...
Prepare for devaluation, the brazilian currency has coming from 4,00 to 1 USdolar (2002) upt to 1,55 to 1 USdolar (ago, 2008). By now its value is 2,00 to 1 USdolar and going down.
In five years a bottle of soda will cost five dollars.
LOL.
No one is going to argue with that! Especially after Wells Fargo jumped the gun on Friday morning to buy Wachovia out of CitiBank Corps hands, in order to get the bail out money.
The socialisation of the Free Worlds Banks is now being attempted, but will fail. The money they are pouring in , is going into a virtual,bottomless black hole, and soon they will run out. Then their electorates will get extremely disgruntled. Perhaps with luck we will see a rise of conservative free economics throughout Western Nations.
That was worth the read... thanx!
The above is a direct quote of your message to me.
Those are not questions?
Forgive me. I am so dense that I thought they were questions.
As for the chicken or the egg, that has always been a stupid question.
And the answer to the question is moot to anyone with any common sense, for those with common sense know that it takes both if you are going to have chickens.
While the intellectual elitists sit around contemplating their navels and trying to decide which came first, the people that make the world work are in the chicken business.
Spitzer’s fault. He got rid of Greenburg to allow the debacle to take place.
There was this "Third Way" thing out of the London School of Economics, an intimate amalgam of gov't involvement with corporate strategy. It also happens to be Japan's way, by design or chance, in the last few decades, and has certainly stagnated that otherwise enterprising society.
Keep pressing.
Were Freddie/Fannie not in danger of crashing in 2005, what excuse would Congress have had to open the floodgates to the truly fraudulent lending that's appeared since then? While I won't say greed is never a driving force for Congressional actions, I would consider it a far weaker motivation than CYA.
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