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Rich country, poor country

How to see a crash coming a mile away

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How a "rich" country can become poor overnight
The story of Iceland (2007)

This far sighted analysis was posted by Max Kaiser well before the Crash in Iceland and elsewhere. Even though the Icelandic financial crisis would not occur for a year after this presentation was made, Max Keiser saw the writing on the wall. His skill and foresight over a half decade ago has lessons for you today.

I'm putting the presentation up to illustrate three important points:

1. Predicting crashes is not rocket science.

All you need to do is find unsustainable excess made possible by reckless debt and risk taking and then sit back and wait. The crash will come.

2. The mainstream financial news media is mostly unreliable and their reports should never be taken at face value.

At the exact same time Kaiser posted this video, the mainstream financial news media presented Iceland as a "success story" thereby encouraging people to put their savings in Icelandic banks which were then paying very high interest.

3. A "rich" country can become a poor country overnight

What takes years to build up can crash in weeks if not days. That's the nature of crashes. Everyone eventually "wakes up" all at once and tries to rush to the exit.

For some reason, the average investor doesn't get this.

As long as prices continually go up in a market, the market of buyers continues to grow (until the world runs out of buyers which it always eventually does.)

When the upward price trend ceases for real, the momentum buyers who pushed the prices up on the first place vanish like smoke.

With no buyers, sellers have to discount and discount again to find a price to unload. All it takes is a few sellers in desperate straights (they have to raise funds at any cost) and the whole house of cards comes crashing down.

That's how "rich" countries become poor countries overnight.

Coming to a country near you...