Warning
2008 Financial Tsunami ImminentNo one ever thinks there could be another stock market collapse or great depression. Just as we now know lightening can strike twice in the same spot, so too will come another depression. Here’s why I think it will happen soon.
To understand the forces that eventually cause the financial markets to collapse, it would first be helpful to place the discussion within the framework of scientific emergence and interconnectivity. This scientific perspective provides us the context to envision the nature and interaction of events that precipitate and ultimately cause this tragic calamity.
Wikipedia defines Interconnectivity as a concept that can be summarized that all parts of a system interact with and rely on one another simply by the fact that they occupy the same system. In addition that a system is difficult or sometimes impossible to analyze through its individual parts considered alone.
Wikipedia goes on to define Emergence as the way complex systems and patterns arise out of a multiplicity of relatively simple interactions. Emergence is central to the theory of complex systems.
So what’s the connection between all this science and the stock market.
Conincidently Wikipedia goes on to say The stock market is an example of emergence on a grand scale. As a whole it precisely regulates the relative security prices of companies across the world, yet it has no leader; there is no one entity which controls the workings of the entire market. Agents, or investors, have knowledge of only a limited number of companies within their portfolio, and must follow the regulatory rules of the market and analyse the transactions individually or in large groupings. Trends and patterns emerge which are studied intensively by technical analysts.
It is through this science I can see the weak and strong emergent arise and give way to the birth the of a destructive self-organizing emergent market phenomenon.
For the moment let’s put the science aside and procede with the following fact based analogy which help me explain what I am calling a Financial Tsunami.
Imagine if you will that all the financial markets and their activities such as buying, selling and holding securities and assets are analogous to the oceans and their shorelines. The eb and flo of tide movements represent the buying and selling of stocks. Everything goes on day after day with little changes except for a storm or two and high and low tides. Day after day all goes as anticipated, with the exception of transient storms and the occasional high and low tides.
This little paradise scene goes on but some people on this beach start to notice that there’s troubles brewing out in the water. However the life guards don’t seen to be reacting, rather, they keep assuring the people the waters are fine. Then sudenly Mr. John Q Public is having trouble keeping his head above water, and Ms. Mary Everywomen is barley tredding water. Then as Mr Subprime drowns he takes more and more people down with him. These disturbances multiply, but the ever confident and ostensibly healthy lifeguards insist all is well, they keep telling everyone that the water is safe. Many other disutrbances occur but those healthy looking lifeguards and boardwlk announcers keep telling everyone, everthing is fine.This goes on year after year.
Every now and then politicians come to the beach to declare all is well, inviting people to jump in saying the waters is fine,. The media covers these events and report all is well and show local fishermen talking about how great the fishing is in these waters. The beachgoers are comforted by this and put more Dumblock on and continue to Baaa Baaaake, getting burned in the midday sun.
Suddenly the people start to feel the sand beneath shake. Next they become aware that the ocean is receding. This is of concern as it lengthens their walk to the ocean. More people get Sumburned. But cries of “Don’t worry”, come from the lifeguards who skillfully point out to the beach goers that the receding waters have uncovered many beautiful seastocks shells for themn to collect. Even the President comes down to pick up some shells and hands out Don’t Worry Hats.
So here we are, all standing on this great american shore listening to the Beach Boys sing, “Let’s go surfing now, everybody’s learning how, come on a surfari with me”.
Ok enough analogy, you get the picture and time is running out especially since I started telling this story in the spring of 2007. At the end of 2006 I was the doom and gloomer until what I was saying started coming true. I sold my house based on what I believe in the spring of 2007. So here is the short blast of my message.
Watch your pensions watch your stocks, watch your money the reaper is coming to get them. He’s coming as he came and took your fathers and his father’s before him. So get your money out of the stock market. I feel its going to be so bad that I’m not even sure where your money will be safe. God knows its just about impossible to pull it out of a bank in a hurry. Try as you may you first must fill out forms and wait a week or two. I know I asked.
You see, our polictical leaders should have waged a political war here at home to protect the American Dream and the American Family. Instead our leaders took our American sons and daughters from their families and sent them off to fight in a war. A war that in part says its going to give the same American dream to others in distant lands. Yes the same dream and ideals that are dying here in the American homeland.
In short our government has failed the people. In short the dream has been sold away along with the soul of the seller. And it is their misdeeds that bear no fruit for the common good.
In the past both top and bottom prospered together. Of course they got the bigger and better end of the deal. The average man is a trusting soul who believes his government and his employers care for him and his family in some way as he cares for their business. If he didn’t trust his employers to take care of him in sharing profits he wouldn’t have allowed the unions to die out in this country, instead he would have joined one.
So what I’m saying is I guess we have always believed in the trickle down theory. Only what trickled down in the last decade o r so smelled more like our own sweat then yhr money needed to feed and clothe our families.Oh we did get comp-time.
You see the political parties have in effect neutralized the people’s vote by willfully serving their own polital agenda, special interests groups and greedy corporations. All of whom donate the cash. Through legislation and powerful think tanks these enities are the new predators who get their laws passed and then roam free to prey on us at will. The people no longer have a champion to fight these predators. It is all their misdeeds, their lies that have finally caused a great divide to form. This riff or social earthquake has now set in motion a financial tsumanmi.
So as we speak these same people who have ignored the plight of the average man and women who are struggling to make ends meet, are now telling countless millions of Americans that its safe for the them to continue walking these financial shorelines despite the recedeing waters.
To them I say, "walk a mile in my flip flops". To them I say," come with me to the voting booth and watch how your vote makes no difference and no improvement in our life, year after year, president after president". To them I say, "come watch the value of our homes plummet because of these sub-prime loans you help create". "Come watch us get evicted from our homes losing it and everything we worked for". "Come watch as creditors, prey by raising interest rates, thus delivering the fatal blow in part because of your failure to act.
To understand the forces that eventually cause the financial markets to collapse, it would first be helpful to place the discussion within the framework of scientific emergence and interconnectivity. This scientific perspective provides us the context to envision the nature and interaction of events that precipitate and ultimately cause this tragic calamity.
Wikipedia defines Interconnectivity as a concept that can be summarized that all parts of a system interact with and rely on one another simply by the fact that they occupy the same system. In addition that a system is difficult or sometimes impossible to analyze through its individual parts considered alone.
Wikipedia goes on to define Emergence as the way complex systems and patterns arise out of a multiplicity of relatively simple interactions. Emergence is central to the theory of complex systems.
So what’s the connection between all this science and the stock market.
Conincidently Wikipedia goes on to say The stock market is an example of emergence on a grand scale. As a whole it precisely regulates the relative security prices of companies across the world, yet it has no leader; there is no one entity which controls the workings of the entire market. Agents, or investors, have knowledge of only a limited number of companies within their portfolio, and must follow the regulatory rules of the market and analyse the transactions individually or in large groupings. Trends and patterns emerge which are studied intensively by technical analysts.
It is through this science I can see the weak and strong emergent arise and give way to the birth the of a destructive self-organizing emergent market phenomenon.
For the moment let’s put the science aside and procede with the following fact based analogy which help me explain what I am calling a Financial Tsunami.
Imagine if you will that all the financial markets and their activities such as buying, selling and holding securities and assets are analogous to the oceans and their shorelines. The eb and flo of tide movements represent the buying and selling of stocks. Everything goes on day after day with little changes except for a storm or two and high and low tides. Day after day all goes as anticipated, with the exception of transient storms and the occasional high and low tides.
This little paradise scene goes on but some people on this beach start to notice that there’s troubles brewing out in the water. However the life guards don’t seen to be reacting, rather, they keep assuring the people the waters are fine. Then sudenly Mr. John Q Public is having trouble keeping his head above water, and Ms. Mary Everywomen is barley tredding water. Then as Mr Subprime drowns he takes more and more people down with him. These disturbances multiply, but the ever confident and ostensibly healthy lifeguards insist all is well, they keep telling everyone that the water is safe. Many other disutrbances occur but those healthy looking lifeguards and boardwlk announcers keep telling everyone, everthing is fine.This goes on year after year.
Every now and then politicians come to the beach to declare all is well, inviting people to jump in saying the waters is fine,. The media covers these events and report all is well and show local fishermen talking about how great the fishing is in these waters. The beachgoers are comforted by this and put more Dumblock on and continue to Baaa Baaaake, getting burned in the midday sun.
Suddenly the people start to feel the sand beneath shake. Next they become aware that the ocean is receding. This is of concern as it lengthens their walk to the ocean. More people get Sumburned. But cries of “Don’t worry”, come from the lifeguards who skillfully point out to the beach goers that the receding waters have uncovered many beautiful seastocks shells for themn to collect. Even the President comes down to pick up some shells and hands out Don’t Worry Hats.
So here we are, all standing on this great american shore listening to the Beach Boys sing, “Let’s go surfing now, everybody’s learning how, come on a surfari with me”.
Ok enough analogy, you get the picture and time is running out especially since I started telling this story in the spring of 2007. At the end of 2006 I was the doom and gloomer until what I was saying started coming true. I sold my house based on what I believe in the spring of 2007. So here is the short blast of my message.
Watch your pensions watch your stocks, watch your money the reaper is coming to get them. He’s coming as he came and took your fathers and his father’s before him. So get your money out of the stock market. I feel its going to be so bad that I’m not even sure where your money will be safe. God knows its just about impossible to pull it out of a bank in a hurry. Try as you may you first must fill out forms and wait a week or two. I know I asked.
You see, our polictical leaders should have waged a political war here at home to protect the American Dream and the American Family. Instead our leaders took our American sons and daughters from their families and sent them off to fight in a war. A war that in part says its going to give the same American dream to others in distant lands. Yes the same dream and ideals that are dying here in the American homeland.
In short our government has failed the people. In short the dream has been sold away along with the soul of the seller. And it is their misdeeds that bear no fruit for the common good.
In the past both top and bottom prospered together. Of course they got the bigger and better end of the deal. The average man is a trusting soul who believes his government and his employers care for him and his family in some way as he cares for their business. If he didn’t trust his employers to take care of him in sharing profits he wouldn’t have allowed the unions to die out in this country, instead he would have joined one.
So what I’m saying is I guess we have always believed in the trickle down theory. Only what trickled down in the last decade o r so smelled more like our own sweat then yhr money needed to feed and clothe our families.Oh we did get comp-time.
You see the political parties have in effect neutralized the people’s vote by willfully serving their own polital agenda, special interests groups and greedy corporations. All of whom donate the cash. Through legislation and powerful think tanks these enities are the new predators who get their laws passed and then roam free to prey on us at will. The people no longer have a champion to fight these predators. It is all their misdeeds, their lies that have finally caused a great divide to form. This riff or social earthquake has now set in motion a financial tsumanmi.
So as we speak these same people who have ignored the plight of the average man and women who are struggling to make ends meet, are now telling countless millions of Americans that its safe for the them to continue walking these financial shorelines despite the recedeing waters.
To them I say, "walk a mile in my flip flops". To them I say," come with me to the voting booth and watch how your vote makes no difference and no improvement in our life, year after year, president after president". To them I say, "come watch the value of our homes plummet because of these sub-prime loans you help create". "Come watch us get evicted from our homes losing it and everything we worked for". "Come watch as creditors, prey by raising interest rates, thus delivering the fatal blow in part because of your failure to act.
Yes, please come and watch many of your fellow americans let go of the American Dream once and for all. Comewatch as they drift under the waters with not even a politician’s hand reaching out to save them. Come watch because if we don’t drown you’ll see we will have to pay for other peoples sub-prime mistakes through our increased taxes. Come watch as the people who created this mess get away with it.
As you can see this beast has many faces and is succeeding in killing the American family and its dream. The effects of their actions and misdeeds have not only beaten down the average worker in America by lowering his wages and benifits but most americans now have second jobs just to make ends meet. And quess what? Both ends don’t meet!
All these changes have had a devastating effect on home life. The cause and effect weakens, destroying the American family and thier way of life. It accomplishes this by removing its leaders, Mom and Dad, who if you remember are always working. The final blow to millions of American families is that even after all their labours they will still loose their homes anyway.
The ecomomics of the middle and lower classes in this country is simple. The majority get a job, work at that job, derive an income from that work. From this income they must pay taxes, rent / mortgage, buy food, clothing, transportation, gifts, college, repairs, insurance, healthcare to name a few. The necessities such as food ,clothing and shelter come first.
To our leaders our employers I say “Do the Math” To all these people I say,”Come to the Great American 2008 Peoples Beach Party- Its free” Come and enjoy a nice ice cold glass of fresh squeezed Saltwater lemonade…thats what you've given us to drink. Come one Come all Come watch the great class regurgitation take place on these great financial shores of the good ole USA..
Yes this is where the American tax payer, consumer, worker regurgitates every lie ever fed to them. This is where the struggling middle and lower classes en mass bear down and give birth to a destructive self-organizing emergent market phenomenon.
Well that’s what I see. Who am I? I’m just a little ole Citizen Bee who’s lost his way back to the Hive. Maybe this too is another example of Colony Collapse. In this case, American Colony Collapse.
God Bless America!
As you can see this beast has many faces and is succeeding in killing the American family and its dream. The effects of their actions and misdeeds have not only beaten down the average worker in America by lowering his wages and benifits but most americans now have second jobs just to make ends meet. And quess what? Both ends don’t meet!
All these changes have had a devastating effect on home life. The cause and effect weakens, destroying the American family and thier way of life. It accomplishes this by removing its leaders, Mom and Dad, who if you remember are always working. The final blow to millions of American families is that even after all their labours they will still loose their homes anyway.
The ecomomics of the middle and lower classes in this country is simple. The majority get a job, work at that job, derive an income from that work. From this income they must pay taxes, rent / mortgage, buy food, clothing, transportation, gifts, college, repairs, insurance, healthcare to name a few. The necessities such as food ,clothing and shelter come first.
To our leaders our employers I say “Do the Math” To all these people I say,”Come to the Great American 2008 Peoples Beach Party- Its free” Come and enjoy a nice ice cold glass of fresh squeezed Saltwater lemonade…thats what you've given us to drink. Come one Come all Come watch the great class regurgitation take place on these great financial shores of the good ole USA..
Yes this is where the American tax payer, consumer, worker regurgitates every lie ever fed to them. This is where the struggling middle and lower classes en mass bear down and give birth to a destructive self-organizing emergent market phenomenon.
Well that’s what I see. Who am I? I’m just a little ole Citizen Bee who’s lost his way back to the Hive. Maybe this too is another example of Colony Collapse. In this case, American Colony Collapse.
God Bless America!
