….then believe Nouriel Roubini.
“It is now clear that the US financial system — and now even the system of financing of the corporate sector — is now in cardiac arrest and at a risk of a systemic financial meltdown. I don’t use these words lightly but at this point we have reached the final 12th step of my February paper on “The Risk of a Systemic Financial Meltdown: 12 Steps to a Financial Disaster” (…)-Nouriel Roubini
When my children were young, at times they would say “I’m scared” when they were confronted with something unfamiliar. I always told them “Don’t be scared. Be careful.” If a person is scared , they will do the wrong things and make everything worse for themselves.
Be careful, please. Your job is sound and your money is safe in the banks. The issue is that some banks need loans to operate. The Federal Reserve and the Federal Government have you covered. But the banks may be taken over by the Feds, if necessary. As long as banks are willing to loan money to other banks, you have time to get your own financial house in order. As a matter of fact, the smaller your bank is then the more safe your money is. Why? Because all the real estate loans that your bank issued were sold to the big banks in the secondary market. It is the big banks that may, and I stress may, be the ones in trouble.
A credit shrinkage in the economy will not have immediate effects for you and me. Do as I said and start putting cash aside by lowering your cost of living through paying attention to food , shelter, clothing, and debt.
I suspect that the owners of stocks and bonds will have a roller coaster ride for a few months.
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