What's next? That's a question I am often asked by clients, audience members and teleseminar participants. The answer to that question is a moving target because there are so many things one needs to stay on top of in order to remain nimble enough to navigate rapid change. Here are several "What's next?" scenarios to keep in mind as we move through the summer:
Banks are scrambling. In conversations with several banking executives I have been told that banks are not loaning money. They are authorizing far fewer loans. An unspoken, behind the scenes trend, is that banks are attempting to cross collateralize every kind of loan on their books. Companies and small business people who, for years, have had lines of credit for payroll or seasonal expenses are now being told they must securitize those loans with any kind of asset they might possess. In other words, having even one loan at a bank can put all your other assets as risk. Customers that object are being told to take their business elsewhere. The squeeze is on. The solution is to opt out of using banks whenever, wherever and however you can.
Banks are scrambling. In conversations with several banking executives I have been told that banks are not loaning money. They are authorizing far fewer loans. An unspoken, behind the scenes trend, is that banks are attempting to cross collateralize every kind of loan on their books. Companies and small business people who, for years, have had lines of credit for payroll or seasonal expenses are now being told they must securitize those loans with any kind of asset they might possess. In other words, having even one loan at a bank can put all your other assets as risk. Customers that object are being told to take their business elsewhere. The squeeze is on. The solution is to opt out of using banks whenever, wherever and however you can.
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Another "what's next?" is that multiple simultaneous "events" will accelerate a financial collapse. Leading experts from Richard Russell to Harry Dent to Bob Chapman and others have forecast a major leg down in the stock market beginning sometime in the next 90 days. Couple that with other events such as the growing danger and implications of the Gulf oil catastrophe, the growing threat of war in the Middle East, the next major wave down in housing and commercial real estate, the loss this August of potentially several hundred thousand teacher positions and over 30 states and hundreds of municipalities facing near-term insolvency and question isn't "are we going to have another financial collapse?" The question is: How bad will the next financial collapse be? It's not a question of "are we going to have one?" The one we're presently in is going to accelerate to the downside. And accelerate rapidly.
Another "what's next?" is that political upheaval will result in the November elections and accelerate into 2012. More and more incumbents are calling it quits. And that's a good thing. Those that aren't are facing the hottest political fires of their entire career. The traditional left/right political paradigm is growing thin. With the exception of about a dozen "hot button" issues, the major political parties are distinctions without a difference. They both increase deficit spending. They both erode personal freedoms. It's just a question of which spending is increased and which freedoms are eroded, based on the party in power.
The biggest and most important "what's next?" is that the "contrarian" is about to be rewarded. Those individuals who have been marginalized and suffered ridicule at the hands of the mainstream pundits and politicians are about to be recognized as the pioneers they have always been. Those who have invested in gold. Those who have positioned themselves outside of the credit and banking system. Those who have been intellectually honest about what is, instead of what they would like it to be.
Real change is coming. But it looks nothing like what we have been promised so far.
Another "what's next?" is that political upheaval will result in the November elections and accelerate into 2012. More and more incumbents are calling it quits. And that's a good thing. Those that aren't are facing the hottest political fires of their entire career. The traditional left/right political paradigm is growing thin. With the exception of about a dozen "hot button" issues, the major political parties are distinctions without a difference. They both increase deficit spending. They both erode personal freedoms. It's just a question of which spending is increased and which freedoms are eroded, based on the party in power.
The biggest and most important "what's next?" is that the "contrarian" is about to be rewarded. Those individuals who have been marginalized and suffered ridicule at the hands of the mainstream pundits and politicians are about to be recognized as the pioneers they have always been. Those who have invested in gold. Those who have positioned themselves outside of the credit and banking system. Those who have been intellectually honest about what is, instead of what they would like it to be.
Real change is coming. But it looks nothing like what we have been promised so far.
