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Surviving The Final Bubble by Charles Hayek
Surviving The Final Bubble by Charles Hayek
Surviving The Final Bubble by Charles Hayek
We could be in bubble and that bubble could crash and it's not going to be a pretty
picture. You know the market is going down big league the last couple of weeks. But we
could be in a big fat bubble and if that bubble crashes it's a problem. The word bubble,
remember the word bubble... you heard it here first... I don't want to sound rude but I
hope that if it explodes it's going to explode now rather than 2 months into another
administration.
If you too are feeling scared or confused, than this presentation will shed light on what's really happening
right now.
If give me just 10 minutes of your time,
I promise that by the end of this short video you will understand more about the economy than many
Harvard graduates.
My name is Charles Hayek and I am a retired economics Professor.
For most of my life I have studied macroeconomics and the cycles of
boom and bust in the global economy.
In my research I have uncovered a strange pattern that has been
going on for the past 20 years.
SINCE THEN.
Right now, I will show you the hard facts that lead me to this conclusion in plain and simple English
So that by the end of this video you can make your own choice
And be better prepared for what's to come.
But to understand how this bizarre pattern works, we need to take a short look back at 1999.
It seemed like a totally different America than the one we are living in today.
The stock market was booming thanks to the internet companies, affectionately called the dot coms.
For many Americans, investing in the internet companies seemed like the quickest way to become rich.
More and more people put their savings into the stock market driving it
higher and higher.
They gambled their money on the hope that they could sell these stocks
for 2 to 3 times their value.
And everybody was praising the Clinton administration for creating the
biggest economic growth in US history.
The long economic boom of the late 90s became a gigantic bust.
Bush was entering at a time when the NASDAQ had lost 60% of its value,
erasing 7 trillion dollars of American wealth.
Clinton's economy grew on the back of the dot com bubble. And now,
everybody was looking to Bush to get the economy going again.
But before going any further, let's take a short step back and see what we can learn from this:
An economic bubble grows around an asset that becomes very attractive to investors.
In the 90s this asset was the internet company stock.
Greed attracts more and more people who gamble their money hoping that prices will go up and they will
sell for a profit later.
When people are blinded by the bubble they think that growth will never end.
This delusion is fueled by the media, economic experts and even the FED.
At this point something very interesting happened: as the economy showed signs of slowing down the
FED raised the interest rate.
And, curiously, some months before the next US election, the bubble bursts crating massive economic
pain.
We now have a theory that we can put to the test:
If these people defaulted on their payments, the bankers didn't care. They would be left with the house,
an asset that was rising in price. These no down payment, no collateral mortgage loans called subprime
mortgages were given to millions of low income families.
Now, the bankers had a brilliant idea... bundle up the normal mortgages with the subprime ones and sell
them to other banks, pension funds, hedge funds and sovereign funds. Mortgage payments generated
huge profits and demand was high for this new type of speculative contract now called Collateralized
Debt Obligations or CDO's. No one thought a mass default on mortgage payments was possible.
Banks Big and small gambled on CDOs thinking that prices will continue to rise.
had begun. At it would reach its peak in fall 2008, right before the
elections.
House prices tanked. Banks and other investment funds found that their bulletproof, high profit CDOs
became worthless. No one wanted to buy CDOs or houses anymore. It was a financial bloodbath.
The banking giant Lehman Brothers had bet on mortgages and was left holding assets nobody wanted
anymore. On the 15th of September it filed for bankruptcy. During November 2008, Americans lost more
than a quarter of their collective net worth. U.S. stocks were down by 45% from its 2007 high. Housing
prices had dropped 20% from their 2006 peak. Total US household wealth went down by $14 trillion.
Through the banking giants Citigroup, Bank of America, JP Morgan and
Goldman Sacks, the big traders of CDOs the crisis had spread to the world
... and now stocks and property values plummeted everywhere. The economy of the world entered a deep
recession.
All this happened as our nation was preparing to choose its 44th President. The housing bubble burst 2
months before the election.
The last time the price of oil was this low, the global financial system was melting down. It's happening
again. And this time it will hit the US economy much harder because of the shale miracle.
CNBC's Jim Cramer is warning that many US oil companies will become bankrupt if the price of oil
remains this low.
The price of copper too has plunged all the way down to $2. The last time it was this low was just before
the stock market crash of 2008.
Corporate debt defaults have risen to the highest level that we have seen since the last recession.
Consumption is slowing down: In October, U.S. imports of goods declined by 6.6 percent on a year over
year basis. U.S. exports of goods declined by 10.4 percent on a year over year basis. 2015 was the worst
year for holiday spending since 2008.
U.S. manufacturing is contracting at the fastest pace that we have seen since the last recession.
If just one or two of these indicators were flashing red, that would be bad enough.
The fact that all of them seem to be saying the exact same thing tells us that big trouble is ahead.
Facing all of this negative data the experts claim everything is fine.
Obama said in his State of the union that the economy is fixed.
John G. Stumpf, CEO of Wells Fargo: The Economy is fundamentally strong [...] Housing is
booming, technology is booming, commercial real estate is booming.
Michael Bloomberg: In all fairness to Obama during the last few years jobs have been
created and the jobless rate is way down.
Lloyd Blankfine, CEO of Goldman Sacks: The United states is growing as a trend 2.5% - 3%
trend growth.
My prediction for 2016 is that we will see a banking collapse that will make the 2008 crisis look like a
Sunday afternoon picnic.
This coming crash will wipe out the entire US financial sector and take with it savings, deposits,
retirement funds, pensions... it will be nothing short of a financial bloodbath.
How can this be possible?
Well... remember how bubbles are created when something seems to grow indefinitely? The delusion is
that something is too big to fail... but the bigger the bubble becomes the faster it fails. Right now, people
think Big Banks can't fail because of their size and importance to the world economy. It is as blatant as
their name suggests.
was clear: do whatever risky business you want, we've got your back!
It's called the derivatives market and right now the total net worth of all outstanding derivatives contracts
is a staggering 552.9 trillion dollars according to the Bank for International Settlements.
This is not a metaphor, an analogy, or a generalization. The players on the derivative market gamble
trillions on the future price of the asset to which the derivative is attached to.
Warren Buffett once referred to derivatives as financial weapons of mass destruction. And he was
proven right.
The CDOs that lead to the crash of 2008 were derivatives as they drew their value form interest
payments on mortgages and housing prices. They were traded on this market just like all the other
derivatives. And they were just a tiny part of the market. In 2008 there were about $500 billion worth of
CDOs. That was only a very tiny fraction of the derivatives market. Yet it was enough to almost collapse
the economy of the world.
Remember how I said that this is the world's largest casino?
In a nutshell, the derivatives market or more correctly put, the derivatives casino is where Big Banks and
other financial institutions place their bets on every aspect of the world economy.
Many have had water or electricity cut off or face eviction at any moment because they've fallen so far
behind with their rent or mortgage, she said, People's pay and pensions have been cut, everyone is
more and more squeezed.
DIONYSSIA MICHAELIDOU, Retiree: I have no insurance. I have no pension. I have nothing.
Today, as many as 15,000 Athenians can be classified as homeless. Most homeless are men, half of them
non-Greeks. 60% of them are addicted to alcohol or drugs and two thirds have physical or mental health
issues.
The budget for Greece's 132 hospitals was $735 million before the economic crisis. This year, that number
dropped to $50 million.
THEO GIANNAROS, Director, Elpis Hospital: With this problem, the next months, even the insured
people aren't going to have the proper treatment. So, if we don't have any money, our treatments are
going to be aspirins, or red peppers, like in Africa. What is happening here is a crime against humanity.
Here, some thousands are going to die or died already.
the deepening poverty has led to an increase in suicides and preventable deaths. Since the crisis, suicides
have increased by roughly 50 percent.
EMMY CHRISTOULAS, Daughter of Suicide Victim: If one Greek was to take up a Kalashnikov, I
would be the second. I find no other solution than that of a dignified exit before I begin searching through
the garbage for my food. I believe that, one day, because the younger generation has no future, they will
take up arms and hang the traitors of the nation.
The collapsing medical system, like the increase in suicides, are both symptoms of the impact of the crisis
on Greece.
meltdowns, which strategies worked and which condemned hundreds of thousands to poverty. But I felt
that was not enough. Given the size of the derivatives market and the wild speculation going on, securing
wealth and financial stability may be very low on the priority list for any family. Food, water, safety, and
keeping illness and criminals away may be a far more pressing concern. These are the very real threats in
case of a major disaster.
If this presentation made any sense to you, if you have begun to understand the economic gun that's
pointed at the head of every US citizen than you too need to take the following information very seriously.
Make no mistake, this disaster will be global. There will be no place to run to for safe heaven.
Now, when it comes to disaster preparedness, there are some people in our country who take survival
very seriously. I heard of them from TV shows like Doomsday Preppers. And before discovering the
looming derivatives disaster I didn't take them seriously... I thought they were just the 21th century from
of crazy induced by Hollywood disaster movies. Researching the coming economic meltdown changed my
mind completely.
And I remembered that one of the former faculty members, Mark Baker, had actually quit his job back in
2009 to dedicate his life to prepping.
I remembered what he said when he left: the safety of my family comes first, everything else is
irrelevant.
I knew I had to get in touch with him again. He agreed to meet me. I knew I had found the right person
when he said he went to Greece during the worst time of the crisis to see exactly what was going on and
Surviving an economic crisis is one thing, thriving and securing your wealth during it is a totally different
game. Fortunately, I had already done my research on that. So we put our knowledge together and
created an economic disaster survival blueprint for our families that would handle both survival and
wealth protection.
And we knew we had to warn unsuspecting Americans of what is coming and share this vital knowledge
with them.
This is how Surviving the Final Bubble was born: A blueprint to surviving and thriving during the coming
Big Bank Derivatives collapse.
The three assets you do not have to report to the U.S. Government. In 1933 President Franklin D. Roosevelt
forbid the Hoarding of gold within the continental United States and criminalized the possession of monetary
gold and confiscated thousands of tones from the citizens. This has happened in mainly due to the Great
Depression and can happen again during an economic collapse to whatever assets the government wants to
take away from you. But they can't take what they don't know you have. We will show you the safest
investments you can make to protect your financial stability.
We will show you exactly why silver may become the best place to store your wealth and where to get it to
avoid scammers. Historically, during an economic crisis the price of silver skyrockets, not to mention the fact
that silver coins are easy to barter with and to store.
We will tell you the absolute best asset to buy during the crisis. This is not preparation, this means acting on
the moment and seizing an opportunity that may end all your financial worries.
This information is designed to help you thrive during the Big Bank Derivatives Collapse... if it does not
spin completely out of control. But if it does, Mark's hard earned skills will guide you through in what we
call the worst case scenario section.
Inside you will discover:
How to have consistent, nutritious and long lasting food stores in a crisis, by storing food and water without
alerting anyone. Following these first few crucial steps will guarantee that you and your family won't be left at
the mercy of others for the most basic human needs. In Greece even some middle class people with
respectable jobs wound up digging through trash or stood in lines for hours for humanitarian handout. You
want to do everything in your power to avoid that and we will show you how.
12 skills vital during the coming collapse. All of these essential skills were selected by Mark based on his
experience in Greece. When the services we've come to rely on are no longer available and when having cash
becomes just paper you want to have something valuable to trade other than you supplies. You will safer
knowing you always have valuable knowledge to offer in exchange for whatever you might need.
Unfortunately, because of their stature and frailness, children and senior citizens are the weakest links in
disastrous situations like these. But that doesn't have to be the case anymore, because we will show you a
couple of essential tips to ensure their safety and wellbeing at all times.
You will discover the secrets on how to build strong links within the community and how to become its leader.
There is always safety and conform in numbers and you will find out how to build a cohesive group and how to
manage dangerous situations.
This is just a brief glimpse on our comprehensive guide to surviving and thriving during the coming
financial meltdown.