December 15, 2007

Veteran financial forcaster predicts "financial tsunami". HP'ers shrug and ask what took so long.


Well, here's some interesting weekend reading.

Spend next week reviewing your portfolio. Eliminate as much risk as you can. Get defensive. You'll be glad you did.

MarketWatch: Schultz sees an apocalypse now - Veteran editor declares 'A financial tsunami is upon us'

Among other interesting ideas raised by Schultz in his intense, somewhat terrifying introduction: recession, possibly depression; bank failures; exchange controls; housing prices down by 50%; credit card company failures; money market fund dangers; tripling of U.S. jobless numbers; federal bail-outs for Fannie Mae.

His advice, translated out of his shorthand style: "If you have not already done so, take immediate measures to safeguard your assets against the global derivative crisis ... Most urgent is close out time deposits, buy non-U.S. government bonds."

In other words, Schultz is saying the U.S. banking system is threatened. How's that for a Christmas greeting?

Schultz says "the second biggest danger is owning U.S. dollars in any form, (it) has crashed and going much lower ... use dollar rallies to exit dollars or sell short ... This is not a time to seek profits, but to protect what U have ... Portfolio diversification is essential in troubled times."

Schultz's favored currencies: "In order of preference: Swiss Franc, Australian dollar, Euro, Canadian dollar."

On gold, he writes: "The public is still not in the gold market. They will be in 2008 as the derivatives and credit crises bring down more financial institutions (amid recession) and eyes will be opened, via pain. While Rome burns, gold will smash through its old unadjusted-for-inflation $850 high on the way to $1,600, & who knows how far beyond ..."

68 comments:

LauraVella said...

This picture's great!

White Swan Event said...

Amid the apocalyptic advice, Schultz finds time to dispense some other helpful hints.

Give money to Republican presidential candidate Ron Paul on his Dec. 16 Boston Tea Party anniversary fundathon.

Over the past five years, Schultz is up a remarkable 34.38% annualized vs. 12.85% annualized for the DJW.
_________________________

I bet he gave Ron Paul a boat load of donations.

Anonymous said...

BRING IT ON. LET'S STOP TALKING ABOUT IT.Take out into the streets.

I Pray for a massive irreversable crash the night before Christmas. What could be better?

All I want for Christmas is an aluminum baseball bat to persuade those not prepared...

Joe Six-Pack, (burp, fart, burp) NASCAR is over and so are YOU.

Your number is up. Get ready for one thing: PAIN. and lots of it.

F#ck the sheeple. Bring the scalps only. They were warned.

See if you can eat granite counters or stainless steel appliances.... Illegal Aliens, you will be hunted down like dogs. Now is you time to vamos.

Mark in San Diego said...

Viva the CHF! Glad I saved those Swiss Francs. . .personally, I think China, the oil countries, Japan, and even India will have to bail out the USA. . .it is their butt too on the line. . .now isn't THAT a fine state of affairs when places like India will have to prop up the US Dollar. . .kind of like a homeless man giving money to a banker.

Anonymous said...

Reality: Let the Tsunami hit! But don't expect a civil response, especially among the poor in major cities. Gold is useless. You won't be able to sell or exchange it with anyone, let alone use foreign currencies unless you plan to abandon the United States. This is the materialist/rich man's answer to the clouds ahead.
The middle class and poor will be facing financial ruin, the end of any form of security, etc. How do you believe they will respond? Quietly? No, we are facing the total breakdown of our civilization and way of life. A new Dark Age is approaching. It has been prepared in our school systems for the last 30 years and the "Age of Aquarius" generation in their material pursuits have produced the greed generation and the greed generation produced the numbskull generation.
The direct blame is on us. We allowed this to go on. We allowed liberalism to infest everything. Now the consequences cannot be avoided. No faith, no sacrifice, no Church (save the modern day Prosperity now churches, they are doing well giving greedy people peace of mind because of their wealth) Soon, no jobs. We produced an economy of materialism and slaves from overseas for menial work here or production of goods imported from slave shops abroad.

eric in vegas said...

Peter Schiff has been saying this for a long time as well. Also, Fannie Mae just said housing won't rebound until 2009 at the earliest. Of course that will be revised to 2010 next year, and so on.

ForeclosureBoy said...

Im fed up with the buy gold crowd.

Let me axe them this: why they NEVER say when to SELL gold? Surely you realize you have to sell it to cash in. Do you sell monthly to pay bills, is that implied?

Anonymous said...

Hitlary will confiscate gold and any other foreign asset holdings of the middle class.

Anonymous said...

They snuck in a bailout package for Wall Street. The FHA aka taxpayers, will be insuring Wall Street's toxic debt. The senate passed the bill 93-1. John Kyle R-AZ was the only Senator to vote no. Presidential contenders Hillary Clinton, Barrack Obama, Chris Dodd, and Joe Biden all voted in favor of the bill. They also raised the FHA limit to $417,000.


The legislation will help the Federal Housing Administration "be a source of salvation for those families who were tricked into unaffordable loans," said Sen. Charles Schumer, D-N.Y.


http://tinyurl.com/2avhe3

Bitterrenter said...

You forgot some of the article:

Amid the apocalyptic advice, Schultz finds time to dispense some other helpful hints. Avoid fluoride. Cell phones may cause cancer. Sauerkraut makes for a healthier prostate. Use faxes for all financial transactions. Give money to Republican presidential candidate Ron Paul on his Dec. 16 Boston Tea Party anniversary fundathon.

I'm gloomy and pessimistic but his guy is a few bricks short. Does he actually shove the sauerkraut up his ass?

PS. He gave Paul a boatload of donations but he's warning us against bad investments?

Anonymous said...

But Warren Buffet said everything was contained!

Anonymous said...

But as long as my credit card still works why should I care? This stuff doesn't happen in America - we're a empire now. We are too big to fail.

Anonymous said...

We have borrowed from the future to pay for the present, and now there's no future left.

k.w. - southern, ca. said...

Public services will also be hit hard.

Nothing is "recession proof" when there
is less and less tax money available to fill
the public trough.

Anonymous said...

Best-selling author and Bilderberg sleuth Daniel Estulin says he has received information from sources inside the U.S. intelligence community which suggests that people from the highest levels of the U.S. government are considering an assassination attempt against Congressman Ron Paul because they are threatened by his burgeoning popularity.

Anonymous said...

Who do the hedge funds donate monet to?

http://tinyurl.com/39gmxr

Anonymous said...

After a few days the news of Ron Paul's death, it will be replaced by another Britney Spears story.

Anonymous said...

Who does Goldman Sachs like?

http://tinyurl.com/3bfddm

Anonymous said...

CHARLES E. SCHUMER (D-NY)
Top Industries
The top industries supporting Charles E. Schumer are:
1 Securities & Investment $1,367,339
2 Lawyers/Law Firms $1,203,368
3 Real Estate $750,551
4 Misc Finance $322,948
5 Commercial Banks $285,500

http://tinyurl.com/2j3bqg

Anonymous said...

hey if they need more money , they will just print it...shut up harry. the most expensively compensated investment adviser...my ass.....

Anonymous said...

Anonymous Anonymous said...

BRING IT ON. LET'S STOP TALKING ABOUT IT.Take out into the streets.

I Pray for a massive irreversable crash the night before Christmas. What could be better?

All I want for Christmas is an aluminum baseball bat to persuade those not prepared...

Joe Six-Pack, (burp, fart, burp) NASCAR is over and so are YOU.

Your number is up. Get ready for one thing: PAIN. and lots of it.

F#ck the sheeple. Bring the scalps only. They were warned.

See if you can eat granite counters or stainless steel appliances.... Illegal Aliens, you will be hunted down like dogs. Now is you time to vamos.

December 15, 2007 3:08 PM<<<<


damn, i love this guy....

freeluncher said...

I agree with Schultz but as far as the USD I do not agree. Deflation /stagflation/recession scenario the dollar will rally. Credit crunch is destroying the quantity of dollars in the system - less lending - money creation. A recession will correct the trade imbalance since consumption will sink and this will correct the trade imbalance. The decrease in supply of dollars and the lower demand for foreign goods (foreign currency) should bolster the USD compared to other currencies. Just my opinion based on some sharp analysis provided by others.

Anonymous said...

RP would make a great realtwhore.

Anonymous said...

Remember folks gold by itself IS useless.

That's why I also have silver and LEAD.

Anonymous said...

One of my greates concern is my 401K. It is my biggest nest egg.

What are HPers doing to protect their 401K?

Are they moving out of bonds and into interrnational funds?

Can we have a new topic discussing 401K and how to plan for long term returns in current economic environment? That could also cover IRAs and mutual funds.

Anonymous said...

401ks are bullshit. Poor choices all predicated upon the idea that stocks are the only place to invest.

Put your money into a Roth IRA and/or SEP then you control your money.

its true, we are all doomed said...

* THIS IS IT ** NEWS FLASH!

Report on Business
BOYD ERMAN
December 15, 2007 at 2:16 PM EST

"The stakes are high, because a failure would send shock waves through financial markets, and ensure that investors in the paper lose a great deal of money."

Canadian Banks DEFUALTS ON DEALINE.

30-DAYS TO CRASH

Read in full here: http://tinyurl.com/2lk2hf

Anonymous said...

Ron Paul has been part of the corrupt congress for over 20 years, on the finance committee and doesn't know who runs the federal reserve, and is from TEXAS!
Enough said!!!!

slampig said...

That picture is funny. It looks like a wall of sewage!

no quarter said...

while we are on the "shit hits the fan" scenarios, it reminded me of an article based on one man's real world insight and experiences after the collapse of the economy in Argentina back a few years ago.


http://www.frugalsquirrels.com/cgi-bin/ubb/ultimatebb.cgi?ubb=get_topic;f=1;t=044387;p=1

Princess Mononoke said...

Anonymous said...
>>America - we're a empire now. We are too big to fail.
December 15, 2007 6:25 PM

Too Big??? Uuuhhh, there have been sooooo many empires throughout history that have fallen. Nothing IS too big.

As the old saying goes, the bigger they are, the harder they fall. Somthing like that, but you catch my drift.

Princess Mononoke said...

Remember: The 2004 Tsunami it is the deadliest in recorded history ......

Date: The December 26, 2004, Sumatra Earthquake and Indian Ocean Tsunami .....

This is a riot: In the aftermath of the disaster, there is now an awareness of the need for a tsunami warning system for the Indian Ocean.

All taken from wiki

Anonymous said...

The only way to save this country is by electing Hillary

Anonymous said...

hey keith check this out. One of the best articles I've read

very powerful


http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/12/09/IN5BTNJ2V.DTL&feed=rss.newsread.

Anonymous said...

The person who suggested that we elect Hillary to save the country. What? You know she always reminded me of that woman communist in "Doctor Zhivago" that looks at Yuri so viciously as he is going up the steps in what was once his house. She says "There was room for 15 families in this one house!". In an attempt to bait him and have our doctor taken out and shot despite all the good he did working alone at that hospital in the country.
I wonder if you would say it was a better arrangement comrade, more just"
That is what is in store for you under Hillary

Anonymous said...

BANKS ARE INSOLVENT SO RELAX THE RULES

December 15, 2007 (LPAC)--Auditors are in a tough spot these post-Enron days, with the demise of Arthur Andersen on everyone's mind. If the auditors refuse to rubber-stamp the banks' fictitious valuations, the banks collapse,-- but if the auditors allow the fiction, they run the risk of being severely punished for malfeasance down the road. Hence the suggestion by Ernst & Young Item Club's Peter Spencer in today's London Telegraph, that the British "government must suspend a set of key banking regulations at the heart of the current financial crisis, or risk seeing the economy spiral towards a future that could `make 1929 look like a walk in the park'."

Spencer tries to blunt the clear meaning of his statement, by claiming that the banks are refusing to lend to each other, not because they are insolvent, but rather that they are being prevented from lending to each other by overly restrictive government regulations! The regulations he blames are the capital requirements set by the international Basel agreements, which require the banks to have an 8 percent capital reserve, which Spencer said should be cut to about 6 percent.

In reality, the idea that a mere 2 percent reduction in capital requirements would head off a crisis that would make 1929 look like a "walk in the park," is absurd, as both Spencer and the Telegraph know. What the auditors are really saying, is that the banks are already insolvent, and that the capital requirements must be lowered so that the auditors can continue to certify their books. Which is only an indirect way of admitting the banks are indeed insolvent, despite his denial.

Anonymous said...

"Gold is useless. You won't be able to sell or exchange it with anyone, let alone use foreign currencies unless you plan to abandon the United States."

I told a Jew about this once who was wanted to run to canada, if needed, and I asked him how he'd get there 'cause he'd need gas ,etc..., etc...

I think that, in the end, he agreed with me that if all hell breaks loose, things will be tough for everyone.

with the wall going up on the border of mexico, it's impossible to run down there, for sure!

If you've every watched the movie "The Great Escape," you know how hard it is to escape!

Anonymous said...

Mark in San Diego said,
"Even Countries like India have to bail out US".

It has happened already in CITI,
"Abu Dhabi cash injection,
Indian immigrant appointed to clean up the mess"

Shame on wall street/US to bank on Third World.

smokester said...

"The person who suggested that we elect Hillary to save the country."

wasn't the line:

'elect Hillary, save the country, sacrifice the people!'

Anonymous said...

annnnnd the most important issue for the GOP is:

Was Lucifer really Jesus' brother?

Welcome to the United States of Hickville. Git-r-done!

Anonymous said...

hey keith check this out. One of the best articles I've read

very powerful


You posters gotta learn to use Tinyurl because your links always end up broken due to lengthy size.

Anonymous said...

The GOP/secret society are not done with your wallet yet. Bush/Cheney want to rape the taxpayer until they get out of the White House. Guess who's going to benefit from this "cash"? So you keep running that hamster wheel faster because all the GOP cronies want more money from you, sheep. They will come with bogeyman stories, fake patriotism, etc, just to get your money into their pockets. They don't give a damn about the troops, that's just an excuse to get your tax money.

(AP) -- President Bush appealed to Congress on Saturday to give him real cash for the war, not just a pledge to fund the troops.

"A congressional promise — even if enacted — does not pay the bills," Bush said in his weekly radio address. "It is time for Congress to provide our troops with actual funding."

Anonymous said...

Anonymous no quarter said...

while we are on the "shit hits the fan" scenarios, it reminded me of an article based on one man's real world insight and experiences after the collapse of the economy in Argentina back a few years ago.


http://www.frugalsquirrels.com/cgi-bin/ubb/ultimatebb.cgi?ubb=get_topic;f=1;t=044387;p=1

December 15, 2007 11:21 PM<<<

just figure it would be like this , only worse......he touches all the main areas......water, food, guns, ammo, gold, etc.....i think everyone should read about it. very sobering rendition of what happened in argentina ....

Anonymous said...

Im fed up with the buy gold crowd.

Let me axe them this: why they NEVER say when to SELL gold? Surely you realize you have to sell it to cash in. Do you sell monthly to pay bills, is that implied?


I'm fed up with the lazy ass people who come to this blog thinking that they will get a free financial adviser. They wants us to tell them what to do with their 401ks, when to sell gold, where to invest, etc, And they want now in classic spoiled Baby Boomer style, like we are their bitches or something. Go get financial advice from Cramer, the snake oil salesman.

Anonymous said...

Hitlary will confiscate gold and any other foreign asset holdings of the middle class.

Not really, but SHE'LL BE YOUR NEXT PRESIDENT.

Tabasco said...

Keith, there's a strange dichotomy going on with your site. Your posts have been getting smarter while your commenters have been getting dumber. I'm not exactly sure why that is, but my off the cuff theory is that we are getting closer to some sort of capitulation moment with this whole mess. The Time magazine cover about the housing panic may be just around the corner.

Anonymous said...

it looks like that the first guy running away from that picture (tsunami)was lereah, followed by retsinas and suzanne.

borkafatty said...

On Wednesday, the U.S. Federal Reserve announced plans to lend $40 billion to banks. By my count, it's the fourth high-profile attempt to rescue the financial system since things started falling apart about five months ago. Maybe this one will do the trick, but I wouldn't count on it.

In past financial crises - the stock market crash of 1987, the aftermath of Russia's default in 1998 - the Fed has been able to wave its magic wand and make market turmoil disappear. But this time the magic isn't working.

It isn't a credit crisis, it's a repayment crisis.

Roccman said...

It hath been foretold...

too many people...

too few resources...

Thomas Malthus

Anonymous said...

I just love the fact that the dollar index rose more than 1% on Friday because the conventional wisdom said that:

"Now that there is an inflation problem the Fed won't be able to cut rates any more, therefore the dollar is in good shape."

Boy, what happens when the Dow drops another 1,000 points? Will Ben forsake the stock market for the dollar?

All signs point to no on this one.

Jymkata

Anonymous said...

"Your number is up. Get ready for one thing: PAIN. and lots of it.

F#ck the sheeple. Bring the scalps only. They were warned."

Amen, brother.

Darwin Day is coming.

'Vote from the Rooftops!'

-Snowden

Anonymous said...

Bill Clinton brought this country greatness from 1998-2000. The stock market was going up and everybody was making money and ready to retire as millionaires until Bush stole the Whitehouse

Anonymous said...

I would be cautious about investing in AUDs. The country is undergoing the worst drought ever recorded. All of the cities are facing a severe water crisis but the most severely affecting are the the agricultural regions. This will have a negative impact on the economy via inflation of food and power costs and will likely put the squeeze on mining. I'd like to see a solid La Nina pattern develop to ease the drought before leaping into AU.

Anonymous said...

This blog makes me hopeful about the future. When I see the number of crackpots in the world I realize that no matter how bad things get, sane and smart people like me have a pretty good shot at making it. A lot of bozos' numbers are going to come up before mine does.

Anonymous said...

I have tried talking to people, my family and friends about what is about to happen and they just don't get it. I don't even come on strong, I am very subtle about it. They have no idea what is coming down the pike at us.

Anonymous said...

For those of you who think Hillary is the answer to our future woes, think again. She is so far left that it is scary. I should know as I am one of a few Americans who have ever actually lived in a communist country. Trust me, it sucks. Socialism is halfway to communism and guess what, that sucks too. We need to go back to our roots, the way the founders meant it to be. We have deviated way too far off course. It is time to take back our country, do it peacefully and stop insulting the unbelievable intelligence that our founding fathers had. Thomas Jefferson will always be the greatest American who ever lived, hands down.

Anonymous said...

My fellow HPers:

F*ck the Politicians. They are obsolete. Don't bring a knife to a gunfight...

I urge you all to go to the gym, take a walk, whatever. Get physical. Get off the couch, turn off the PC, invest time in getting STRONG - physically strong. There are so many mentally strong (good) people that are going to be seriously injured or worse in the coming months because they were not physically ready to FIGHT for thier lives and the lives of loved ones.

Get the weapons out, buy some ammo, go to the range, legally practice your shooting. Get a defensive knife, learn how to use it. Practice on a dummy (non-living)Briefly review and become familiar with the rules of escalation of force. You will need them.

Imagine your domicile overrun by hungry and desperate homedebtors, illegal alien felons or worse Realtors looking for food and shelter... Can you properly and efficiently defend yourself?

It may or may not be too late for reasonable measures. If it does turn ugly and the stuff hits the fan, Are you Ready? (Dr.) Ron Paul cannot save you then, no matter what his good intentions are.

BRAINS WILL NOT MATTER, ONLY BRAWN AND CUNNING ARE GOING TO MAKE IT.

Think about Bush-Cheney. That alone should piss you off enough to get really aggressively motivated about saving your family?

Carpe Diem

Anonymous said...

Best-selling author and Bilderberg sleuth Daniel Estulin says he has received information from sources inside the U.S. intelligence community which suggests that people from the highest levels of the U.S. government are considering an assassination attempt against Congressman Ron Paul because they are threatened by his burgeoning popularity.
================================

If the CIA kills Ron Paul, their heads will roll.

***WARNING: TO THE PEOPLE IN POWER: The people are waking up-- you will never get away with it like you did with JFK!!!

Overnight you would be faced with thousands of radicallized terrorist all hunting you down like dogs. No security system in the world will protect you 100% of the time and when you least expect it -- BANG your Dead. So, its time to realize that we all live on this earth together. We all need to get along. Stop trying to destroy the Constitution; and let's work together to solve our problems. If you are smart, you will get behing Ron Paul and realize that we will all be better off with him as President. The U.S. Dollar is going down anyway, so what do you really have to lose?

Anonymous said...

For those of you who think Hillary is the answer to our future woes, think again. She is so far left that it is scary. I should know as I am one of a few Americans who have ever actually lived in a communist country. Trust me, it sucks. Socialism is halfway to communism and guess what, that sucks too

I came from a socialist/communist country too. It really does suck. The government promises everything and delivers nothing. The services suck because the government doesn't care if you get sick and die. It's one less mouth to feed. People are a burden on the system in socialist countries. For those of you who think this is a good thing, wait until it is you or your family that is chosen to die off.

Anonymous said...

.



Surfs up!



.

Anonymous said...

"I came from a socialist/communist country too. It really does suck. The government promises everything and delivers nothing. The services suck because the government doesn't care if you get sick and die. It's one less mouth to feed. People are a burden on the system in socialist countries. For those of you who think this is a good thing, wait until it is you or your family that is chosen to die off."

The point I was making is that I am an American, born and raised. I actually spent a year living in a communist country and it sucks big time. I also traveled all over the eastern bloc. Communism and socialism is/was a waste of 3 generations of human beings.

Anonymous said...

.



Bill Clinton brought this country Greatness??????


That S.O.B disgraced this country

A bunch of those years was the Dotcom years........some made out well, but too many lost their ass



.

Anonymous said...

The point I was making is that I am an American, born and raised. I actually spent a year living in a communist country and it sucks big time. I also traveled all over the eastern bloc. Communism and socialism is/was a waste of 3 generations of human beings.

Socialism is the ideal of the UN and those that promote globalism. David Rockefeller considers China to be an excellent model of society.

So if the New World Order has it's way we can all look forward to an eternity of socialism enforced by a high tech police state. We're half way there already.

Anonymous said...

So how do you guys like this new GOP fascist regime you live in. You must love it, right?

Anonymous said...

Since I have lived in all three worlds, communism, socialism and capitalism, I will take capitalism every day of the week. It is not perfect, but much better than the other two systems. Our founding fathers gave us the blueprint and we screwed with it over the last century and now look at us. Pathetic. We need to get back to the basics. Everything else will work itself out once we do that.

Anonymous said...


So if the New World Order has it's way we can all look forward to an eternity of socialism enforced by a high tech police state. We're half way there already.


The UK is already there with the Liberal government installing cameras on every street. People are now put in prison for defending themselves from criminals. They are cheering on the high rate of children born out of wedlock as a sign of their new progressive society. London is 60% Pakistani and Punjabi and they are still wearing their burqas and performing honor killings of women. Left-wing London Mayor Ken "Red" Livingstone hails this new world order of diversity.

Anonymous said...

Roccman said...
It hath been foretold...

too many people...

too few resources...

Thomas Malthus

December 16, 2007 4:43 AM

-----------------

It didn't have to be this way... Why is it every Turd Worlder's "human right" to crap out 5-10 offspring?

Princess Mononoke said...

Anonymous said...
>>It didn't have to be this way... Why is it every Turd Worlder's "human right" to crap out 5-10 offspring?
December 18, 2007 1:52 AM

This planet was created to supply more than enough resources for ALL living creatures!!!

THE PROBLEM: Need to control...