Smoke and Mirror Economics

[Hero1957]

DO YOUR HOMEWORK

The PE Ratios you mention for the S&P is no where near 120. In fact the PE ratios are very low.

[Nexstar100]

Tim, Rob from Vancouver BC. I think you hit the nail on the head. Things are only going to get worse, like a Thief in the night, who knows when?

You want to move to Montana, well the US dollar will have no value there as well, any place in the US for that matter. Move to Canada, we will have a stronger dollar, yes we will get hit by the US dollar, but not as bad....plus it's nicer up here..lol., no pun intended.

[caganb]

Life is more exciting in Montana. Check out the condos in St Marie. (an old air force base) great deals but in the middle of nowhere

[christo930]

MT is a great place to live. For example, my best friend from HS moved from a big city where he lived in the ghetto and had a miserable life to MT, where he was able to raise a family, own a home and drive a new car. He loved it (he is dead now).

[radon1234567]

I would like to see at least a 50% drop in home prices from where they are now. Are you telling me that every 2x4 is worth $50, and every brick $20? Give me a break!!! You shouldnt have to work your whole life to pay off a home that could be built in a matter of weeks. If we could get rid of the federal reserve bank we wouldnt have such insane home & auto prices because people would actually have to buy these with real money instead of money created out of thin air by the banking gangsters!

[tienshou]

are we still spending 12 billions dollars a week in iraq? is blackwater still hiring contractors for $20000 a month? if the economy is so bad. where did all the money go?who is to blame but ourselves.

[Kashmir2000is]

Are you still asleep?

[pshinspections]

MT is nice in the Spring and Fall, but they get REAL Winters there, and if you live East of the rockies, the ticks are nasty!

If your family has never lived East of the rockies, you need to take an extended vacation to scope it out and feel it.

[jandnay]

they say its getting better but theres no proof but i have proof i cant find a job and im skilled in several areas of manufacturing and construction they can not keep printing money out of thin air sooner or later the fed will raise interest and some one (us) will have too pay for this magically appearing money and when that happens so many people will be in direstraits its not a pretty scenario were in trouble god help us all .

[Lynchian74]

Credit Crunch 2 is starting. FDIC is out of funds. CIT Group is going to go bankrupt. Get prepared people.

[christo930]

The FDIC will never run out of nominal funds, the fed will just create the money and bail them out.

[edjuh10]

by the way.. Harry Schultz called for the bank holiday because all US embassies needed to buy local currency's except for the UK.

[edjuh10]

I also think the banks are going to move (some of)the 2 trillion to the bond market.. That would make it clear why Bernanke says he isnt going to increase the quantitative easing program.

[frgtmygld]

"the money we have seen coming into the stock market since March is coming through the banks from the treasury dept."

So true.

I have suspected for a while that 401k redemption rates have been exceeding contribution rates but have been unable to verify it. However the WSJ published an article saying that some 401k funds were freezing redemptions. The reasons given are very telling.

The article says quote:

[frgtmygld]

" Many funds offered in 401K plans lend their portfolios to other investors, receiving in exchange collateral that they invest in normally safe, liquid holdings.....

But in recent months many of the collateral investments have gone haywire, prompting money managers to restrict retirement plan withdrawals from the lending funds".

In other words, the net asset value of these funds is really no better than the market value of the collateral that they hold.

[frgtmygld]

Yet they are claiming the fund is solvent based upon the value of the portfolio that was lent out, or based upon the value of the collateral they hold at it's mark to model value. If they had to liquidate the collateral to cover redemptions, they would be seen to be insolvent.

In essence, who knows what value remains in our 401k accounts? At every level the investment banks and brokerages take whatever they want of value and replace it with the crap they don't want anymore. We're screwed again.

[mlong5151]

calif folks are showing up here in central ky buying older biz. Several manufacturing co from cali ive read are now in the bowling green area

[DixieGeezer]

Tim sale the riding lawnmower an get a snow blower before you move to Montana....

You'll love Montana...Billings is great, Bozeman is a college town, Missoula is big city living with hunting an fishing near by, You'll love it! Check out Bonner, Mt.

I hope your home sale will not be too painful...good luck.

[noslord]

Move to Asia.

[dlmaniac]

Montana is a little too windy. How about Texas?

[labartic]

Idaho is the #1 survivalist state. Upper part of the state. Just get out of california, its going to be a war zone.

[noncompliant2]

Don't forget Idaho is only 1 of 10 states that have a balanced budget this year.

[centervilletn]

excellent ...its nice to hear someone confirm my arguements regarding the hyperinflated stockmarket and thecollapsing bond market...it also appears the fed has beenloaning foriegn banks money to buy bonds too

[every3600years]

Great vid Tim! thanks for the good info explained well. btw- in my humble opinion, getting out of cali is a smart move. I'm in the process of moving from an urban area/life to rural more self-sufficient life style. Best of luck! e3600y

[traynickel]

This place is DONE! Paraguay here I come. Getting passports for the family this week. Post Office is losing 7 billion a year and not considering layoffs, Hmmm, I wonder why? Oh I know, it would be several shootings at your local post office. It's coming anyway.......

[mahdiya]

It's no good moving to Montana if you've got a nationwide bankholiday coming (on August 24th?!)

Better to chose Europe!

[stonerj0e]

where is the information of this nationwide bank holiday on august 24'th coming from ? iv'e looked everywhere regarding this coming bank holiday but i have found nothing . people must be pulling this information out of their ass !

[mahdiya]

Bob Chapman

[stonerj0e]

lol . that's funny . bob chapman is one of the most looniest characters there is !!! nothing he says comes true .

[Lynchian74]

The FDIC releases its 2 quarter results this Friday. Its also out of funds. To avoid a bank run there may have to be a bank holiday

[Bilakaifa]

I chose Tennessee myself. Have family here, the winters aren't bad, and surprisingly, neither are the summers.

Ever seen the movie "Legend of the Fall" ?

[centervilletn]

howdy neighbor...where are you located?..

[edjuh10]

Come to Europe.

[jinessesea]

What about New Mexico or Colorado? Montana will have some harsh winter weather.

I think about moving myself. There also seems to be a lot of US citizens buying places outside the US in the Caribbean, Mexico, Central America, etc. so there will be expat-type communities around you.

[LysSpooner]

Stay clear of much of Colorado. It's turned way to the left in recent years....Denver-Boulder are outright fascist. Go north where Tim is looking...Wyoming, Montana, Idaho, eastern Washington state

[jinessesea]

Specifically, what is happening with Boulder? Say more.

[Scoforever]

You should probably get out of California.

[Eggy0]

What do u think of the scenario where the banks suddenly move the $2trn+ away from the stock market and into bonds, thus strengthening the $, and claim it was a 'flight to safety'?

[73to79ford]

Check out North Dakota, a budget surplus and 9,000 open jobs currently I believe. Too cold for most people though.

[meikagirl]

We are bankrupted period! Goodbye dollar! Game over!

[meikagirl]

Time to become a forest ranger.

[edjuh10]

Hey Tim. Do you have heard of the bank holiday? Schultz (World's best paid investment consultant) mentioned it in his newsletter.

[popomp1]

ron paul doesnt think they will --

[mejt223]

You sound just like Opption Addict.

Hmmm, is that you?

[66scjohnston]

I would definitely get out of California. I have been to Montana (Big Sky Country). It is lovely. I guess the only negative is the short growing season and cold weather. Don't settle too close to Yellowstone National Park. It has a big caldera the eruption could be devastating. I might head for the smokey mountains in NC instead. The climate is milder. You would have a longer growing season but still get seasonal changes.

[LisaJ4Liberty]

good video, thank you.

[1mealperday]

use google earth to your advantage. try oregon coast. got everything , but simpler slower life.2 acres with a creek, set up camp, grow garden first thing. Had a california contractor come up, lived on his lot in a tent while personally building his house

[Economic4caster]

The link for the chart on the S&P 500 P/E ratio is bull and bear wise . com.

[suzettespencer]

Check out northern NV. Close to Reno & Salt Lake. No state income tax. Flat business tax. No too far from civilization but plenty of land.

[popomp1]

How about Texas I love it here- I also like the fact we had ike i few years back and no one lost it-- it was bad here for about a month- also Alaska is a pretty good pick- but I could see why you would pick montana

[jembocc1347]

Thanks for the update

[fal2grace]

Great update Tim. Thank you. You said you were going to post a link to some charts? I don't see it.

[rexoid]

Montana would be good. I'm in SC ..because I married a school teacher working across the line in NC. Circumstantial..but a good choice by default antway, and it has worked out well..mortgage still above water, and the tomatoes in the first year garden went viral ( No Greeting cards anymore..I give baskets of ripe tomatoes or other fruits and veggies :) Great summary vid..thanks for the update.

[sonnybrakes]

Don't count on the economy recovering until men and women begin starting families in numbers similar to the those of baby boom.

[NowisEvollovetion]

Tim,

Good assessment as always Matey, Montana sounds like a good idea to me, although don't you think you are maybe leaving it a bit late to think about moving?

At least where you currently live you have friends whom you can band together with for protection. To me that is very important.

There is always SAFETY in numbers.