In the United States is the dry season on. This means that you need to ensure that you put your fire off really well. Otherwise the complete state could be ruined. Just have a look at all those farmers who see the food you eat is burned down.
If we look at what is happening in the corporate world than we see that the companies are picking up debt. The debt they have is not only on the books of the issuer. But who owns the debt? That is the big question and unfortunately, no one knows the answer.
Do you remember the financial collapse of 2008? American people took mortgages they couldn’t afford. The mortgages were packed and sold to investors around the world. It was branded as a safe investment.
So when the people could no longer afford the debt payments there was no idea who had it. A lot of money was lost. Not only by investors but also by investments which were used for retirement. Those nice and friendly pension fund managers just blown your retirement money.
A very good indicator of the risks on the debt market is the insurance premiums. The lower the premiums are the lower the risk. At the moment we see the premiums going up.
As we have no clue who owns what corporate debt and what happens when companies are no longer paying off the debt? What if they can’t afford the payments?
Let’s face it. Exactly the same is happening as we saw when the mortgage bubble imploded. So it is time for you to prepare right now. It is time for you to get ready and prosper during the next collapse.