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Risks to Consider: There
is a classic saying on the Street: "Don't fight the Fed." The
Fed is the single most powerful financial institution in the
world and remains fully committed to keeping rates down.
Although the United States is in horrible financial condition,
the market still views Treasury bonds as a safe haven, which
could send prices higher if another financial crisis hits the
Street.
Action to Take: Despite
the country's battered financial condition, Treasury bonds are
still viewed as one of the safest securities in the world. But
with a terrible risk-reward ratio, growing fiscal deficits,
record-low yields and attractive alternatives, the Treasury
market is ripe for a long overdue correction. That's why it is
time for forward-thinking investors to sell their Treasury
bonds and protect their portfolios from huge losses.
http://t.money.msn.com/top-stocks/bubble-bigger-than-housing-about-to-pop
This article reminded me of a
metaidea (sounds like some kind of bug when you pronounce it
ma ta dea)...
And it might be...hehe
The recommendation to get out of
treasuries takes on a very similar thread @F-L-O-W and asking
people to swap needs and wants, to get out @BS...
IF EVERYONE DID IT, the cure is
worse than the disease, it would crater the system...
So, as a pattern
watcher-applications person, I wonder if this metaidea was
worth "categorizing" in some form, because it might have
implications we could use in design?
If something is recommended that if
everyone did it, doing it would be worse than not doing it,
then is there built in resistance to any action by the masses
unless forced?
In other words, is this something
we could say, it won't happen and when it does, there are
worse things.
Example:
People say, you have to own gold
for various reasons.
I've been against this for the
everyday person, other than as a novelty, and something to
enjoy, jewelry is a better investment in my view, because you
can wear it instead of keep it hidden in your wall, or with
someone else in a vault somewhere.
Reason:
When the time comes that we need
gold for day to day currency, things are going to be so bad
anyway, that while gold will be nice, holding onto it and your
life will probably be a greater concern.
The same with the day that everyone
runs from Treasuries
My thinking was this:
If the time comes that Treasuries
are no longer worth anything, then what will be happening in
the world?
What other currency can possibly
handle what the dollar does?
You have circulation issues (amount
in circulation).
You have distribution issues
(amount moving around).
You have acceptance issues (who
will accept a basket of currencies and what will it be backed
by?)
You have storage issues (you can
see that now, gold is hard to move, it's heavy and you can't
carry it around without someone noticing).
You have control "authority"
issues, who will be the authority behind it and who will
control it?
We can't even get along with
anything in the world really, will the G7, 8, 20, 100 be
involved?
China can't handle it, as many
think china is creating a gold-backed currency, but who will
accept that at McDonald's or your bank, and believe me, China
has it's own SUPER BIG problems too, as does Russia, as does
the Euro, and everyone else should the treasuries enter a
period where there is a "run" away anything?
Russia is not in debt (as is China), everyone else is,
but if the Treasuries go, the world grinds to a halt, and
Russia can't feed itself because you can eat oil and gas...per
se...nor can you eat gold? Most people don't realize Russia
has no market economy, it's a commodities economy, and
therefore depends almost wholesales, as does the middle east
on the fate of commodities |
