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ASU2003 · 05-14-2006, 07:21 AM

And you know that the stock market is going to drop 50%+. What could an American do to protect themselves? Even if they put all of their money into a stable investment, their salary (if they have one), homes, cash they have, & price they pay for goods would all work against them. I understand that controlled inflation is good for people who have some money, deflation is good for the poor.

I don't think that this will happen, but I'm glad that I wasn't invested in THLD last week.

And with the tech bubble, Japan in the 90s, the 1989 & 91 decline in the market, Enron/Worldcom, and a bunch of other events since the great depression have occurred. There are improvements in the control of the markets that weren't inplace before however.

What indicators are there that something bad is about to happen? Could the move to gold and metals be seen as a move to protect themselves?

Could something like the great depression happen if China decides to collect it's debt? If oil runs out and goes to $500-$1000/barrel? If social security goes bankrupt and leaves millions of old people without income? If the value of the dollar goes down 500% somehow? If unemployment goes up to 25%?

The only thing I can think of is to buy your house outright, have your car paid for, and get lucky and invest in the right foreign country that won't be affected too much by a collapse in the US.

05-14-2006, 07:21 AM	#1 (permalink)
ASU2003 immoral minority Location: Back in Ohio	Imagine that it is early 1929... And you know that the stock market is going to drop 50%+. What could an American do to protect themselves? Even if they put all of their money into a stable investment, their salary (if they have one), homes, cash they have, & price they pay for goods would all work against them. I understand that controlled inflation is good for people who have some money, deflation is good for the poor. I don't think that this will happen, but I'm glad that I wasn't invested in THLD last week. And with the tech bubble, Japan in the 90s, the 1989 & 91 decline in the market, Enron/Worldcom, and a bunch of other events since the great depression have occurred. There are improvements in the control of the markets that weren't inplace before however. What indicators are there that something bad is about to happen? Could the move to gold and metals be seen as a move to protect themselves? Could something like the great depression happen if China decides to collect it's debt? If oil runs out and goes to $500-$1000/barrel? If social security goes bankrupt and leaves millions of old people without income? If the value of the dollar goes down 500% somehow? If unemployment goes up to 25%? The only thing I can think of is to buy your house outright, have your car paid for, and get lucky and invest in the right foreign country that won't be affected too much by a collapse in the US.