The IMF had some shaky news for Mr. Trump’s Go-Go economy: Hold your horses, it said. You think you’re an emerging market. A Cabinet member, the esteemed Steve Munchin Donuts, pursed his lips and cried “serving Mr. Trump is a great honor!”
In the dark? Don’t be. The short version is there will be economic instability soon. We know this because we know the cyclical nature of markets. Every 10 years, there is trouble. The last time, there was really BIG trouble. It’s exactly a decade later than the crash of 2007, not an anniversary to celebrate.
If you want to understand how markets and world banks interact, this is your book. The Coming Financial Crisis is a concise explanation of world events that shape your bank account, your family and your life. For example, if a bank fails, it is only responsible to reimburse you up to $100,000.00 Now, perhaps you laugh, “I WISH I had a hundred thousand dollars!” Well, one day you might have $200,000,00, the bank fails. and you’ll only get half back. Ouch. This was adopted by the EU and subsequently the US, last year. So Cyprus and Greece are not so far away; their banking problems sent ripples throughout the world just ours did in 2007. Their banking problems triggered this new rule. Globalism, whether you like it or not and whether you believe in it or not, is here to stay.
Here are fail-safe ways – in good times and bad – to make sure your wealth is secure. It’s simply not if it is in a bank or invested in the stock market. Here are 3 easy ideas from The Coming Financial Crisis by John Truman Wolfe:
1. Spread accounts between banks, especially locally-owned banks that focus on banking, not investments, derivatives, etc.
2. Buy real estate. If you’ve been renting, it’s time to make the leap. If you are in a home you love, what about buying another and renting it out? Or, is it time to trade up with a larger house in a different neighborhood? Investing in real estate (usually in the form of the family home) is THE way Americans build wealth. Real estate agents say they see a real difference in the overall financial health in those that bought early versus those who rented for many years. (Remember, “freedom’s just another word for nothing else to loose.”)
3. Gold. Still. Gold.
We experienced many of the effects of the last recession for ourselves as well as in the lives of our family and friends. We do not want a downturn to leave anyone hurting like that again. Protect what you have. Get a good night’s sleep so you can rise and pursue your dreams in the morning, no matter what the news.
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