If you didn't hear about the free fall in the
markets on Thursday with the Dow plunging below 10,000 as a result of the
instability in the Euro caused by the Greece's debt burden, then you must
already have a Self-Empowered Bank in place, and didn't need to worry.
But, for most people, the events
of the past four days have been pretty scary and a reminder that your
investments tied to the market are affected not just by what happens here, but, also by what
happens in the world wide financial market.
Thankfully, the EU, the Federal Reserve, the
Japanese Bank, the IMF and other banking regulators took strong steps
to bring stability back to the markets - at least temporarily. Why do I say temporarily? Well, I think Mr. Phillippe Gijsels, the
head of research at BNP Paribas in Brussels explains it nicely in the New York Times article.
... the central bank action was in some ways the
most crucial, because the European Central Bank would be in effect financing
government budget deficits by monetizing their debt.
The trick now would be to ensure that Greece and
other countries in similar straits are held to their promises to straighten out
The debt is still in the system. Eventually all
these problems will rise again.
Just when you thought
is was safe to go back in the waters ...!
Here it comes again, and as Mr. Gijsels points out, it will continue to
haunt all of us financially, if these debt-riddled countries don't clean up
The other concern is
just how much debt can the various regulators like the Fed, the EU, the IMF and
others, buy up without causing huge inflation?
We're already concerned about the value of the dollar. The euro is already over-valued against
the dollar, and let's face it, the British pound has been up in the rafters for
quite some time. It looks like the
printing presses are going full speed ahead to help keep everything stable, but
it's only a matter of time before that creates its own set of problems.
Why, you ask? Keeping the world financial markets
stable requires that every country DO what it says it will do to clean up its debt. If the four biggies in
Europe - Greece, Italy, Spain and Portugal don't, as Mr. Gijsels says,
"Eventually all these problems will rise again."
on the benchmark 10-year Treasury note, which moves opposite its price, rose to
3.55 percent from 3.43 percent late Friday. That's a good sign, but who wants to tie up their money for
10 years to get that kind of a return?
And don't forget that yield fluctuates with the world markets.
to host a special webinar next Wednesday, called Rescue Me, to talk about how
you can protect yourself against the volatility of the world financial markets.
By moving your money into a
Self-Empowered Bank, you have greater control, flexibility and access to your money
plus your return is fixed, usually between 5% to 7% annually.
the details on the webinar:
Cutting Your Exposure to the World Financial Markets Crises
May 19, 2010
12 noon to
1:00 pm CDT
via this link: Rescue Me. You will
receive an email with a link to the webinar beginning Monday, May 17 and can
sign up all the way until starting time. We look forward to having you with us.