Hello,
What if market action was explicable.After the inevitable crash as everyone pulled their money so as not to be exploited,where would the cash go? I’m assuming (physical) Gold would increase in value in the panic and on the fact that a Gold standard might become more likely,although Governments would resist it. What would happen to property prices? Individuals’ trading would likely be State controlled.Can anyone surmise investment opportunities in such a World?
Welcome. Define “explicable”. Do you mean predictable? Are the remaining questions meant to be related to the first one? (I don’t see how.)
Well let’s just assume that somehow the markets were ‘solved’. It seems reasonable to me that they would be Government controlled after this.However,International trade would still need to continue and I assume private property would also.So we are all stuck in a World where no-one can have an edge. I don’t know what forces it would impose on Governments. During the crash itself,which would be to almost zero I suspect,I asume Obama would switch off the internet hence my preference for physical Gold.
Markets cannot be solved, human action is not quantifiable or predictable or calculable, either individually or in the aggregate, hence your question is redundant.
Still not sure what you mean. “Government controlled markets” is an oxymoron, as is “explicable”, “solved”, or “predictable”. Attaching any of those epithets to any market is tantamount to erasing it. A world with “no edge” is a dead one, as perceived edge is a fundamental driving force for human action and entrepreneurship. The planet would follow the fate of the USSR and North Korea.
In a crash scenario, where the trust in the fiat money and financial system completely erodes, I would guess physical gold and real estate (especially raw, farmable land) – both preferably spread over more than one country or continent – would not be bad ideas. But there are no guarantees, as mobs with pitchforks could always decide to have it their way regardless of your prudent “asset allocation”.
I’d recommend Marc Faber and Jim Rogers on global macro market commentary.
[EDIT: And value all advice garnered on internet forums as much as you paid for it.]
We’re making the assumption in this thread that they are unfortunately solvable and any economists who stroll by are welcome to postulate on the affect of their ending for the ‘private’ (not so much anymore) citizen.How he can preserve his money and even come out ahead in the new World.
Whatever the choice, you had better put any cash to work quickly if the market does crash again. Because Bernanke will be (almost literally) having his helicopter fleet on standby next crash. He will flood the market with untold trillions to nominally prop up the market. Severely diluting your cash.
Just avoid bonds and actual cash cash. At least long term. You have to be in something tangible. Commodities, stocks, or even real estate.
If the markets are ‘solved’ and are taken into the control of Governments for the ‘greater good’ I don’t think Bernanke will be allowed to do anything?There won’t be much volatility .There will be a great questioning and that’s why I said that people may think that a Gold standard is more likely - BUT I can’t see it happening as only the Austrians want it.Does the end of the markets mean the end of Keynesianism?