Whether one is an investor or not, the hideous action in the bond and stock markets should be of great concern to all as it presages even more unpleasant events down the line. The banking sector is looking very unwell. Pay attention to the ever increasing drumbeat of well advertised agony coming from the mortgage/credit sector. It seems clear to this observer that we taxpayers are about to get asked to bail out the entities that have greedily and stupidly made an absolute hash out of their balance sheets via stupefying debt shenanigans. Nothing ever changes on the Street or in the world of high finance, as base criminality is first allowed, then fostered, and finally, when the con goes bad, a rescue is organized which is generally paid for by those who were conned in the first place. Lovely.
So what does it mean for you and me?
Here are just a few of the things one should look forward to so to speak.
1.) Lower share prices
2.) Higher interest rates
3.) Higher precious metals prices (after the world's banks and their henchman exhaust their vile precious metals beat down routine)
4.) A sinking dollar (managed as much as possible) in the manner of a terminally ill patient. Think morphine drip.
All of the above are, of course, interrelated, and while the timing of the evolution of, for example, lower share prices, is uncertain, look for late Summer and Autumn to be a particularly scary time.