Question About Survival of Stock Market
For the most part Road to Roota subscribers understand how the paper and electronic monetary system will be destroyed with the failure of just one or two of the "Too Big To Fail" banks. All financial institutions are leveraged to the system and inner connected relying on the continual growth and flow of money. If just a small % of Tier 1 Capital (say 5% of a 20x leveraged bank) is lost then the entire business is destroyed as they would have no more base capital to support their leveraged bets. Leveraged assets must then be sold off to replenish the Tier 1 (base) capital causing a destruction of asset values across the system and all other leveraged players will have to do the same. Once all the leveraged players are destroyed there would be nothing left for the non-leveraged entities to transact business with so they would crash as well.
In the end nothing is left. Poof...all electronic and paper assets and debt are wiped clean.
It gets a little more complicated with stocks and bonds as people THINK that they have clear ownership title to portions of companies they invest in. First of all these companies would fail as well once the monetary system fails. With no "money in the bank" or customers with the ability to pay for goods and services what is left? Some claim hard assets held by the company will hold their intrinsic value when the NEW monetary system is regenerated and I think there is a hint of truth there.
But then we get back to the STOCK CERTIFICATE SYSTEM we currently live in. Billions of stock trades in milliseconds with virtual shares trading hands in a blink of an eye. No paper trail, no governance, no transfer of titles...NOTHING TO PROVE THAT ANYONE OWNS ANYTHING! There are millions of "Failures to Deliver" everyday on the stock market. These are phantom transactions that are never settled! When you "buy a stock" you assume that your brokerage company goes into the market to purchase the shares for you...BUT THEY DON'T! They just credit your electronic account and use your money for their own purposes. They figure is all comes out in the wash anyways so what's the problem?
In reality there are millions of shareholders out there with multiple claims on the same stock/bond certificates. When the music stops you will be just one of the many standing in line for your MASSIVELY DILUTED share of what is left.
That is why I have warned for YEARS to get out of the system. No savings account, checking account, 401k, stocks, bonds, metal storage accounts...nothing paper or electronic.
IT WON'T SURVIVE THE END GAME!
Your best line of defense is PHYSICAL SILVER in your own possession.
It has been a Bumpy Road up to this point and it is bound to get a whole lot worse but if you can ride it through to the end you will be happy you stayed OUT OF THEIR SYSTEM.
May the Road you choose be the Right Road.
Bix Weir
PS - For those who were asleep in the middle of the (long) night when I posted the Friday Road Trip (for Private Road Travelers) you can find it here:
//www.roadtoroota.com/members/1285.cfm
PPS - I heard Obama yesterday tell people to "Stop listening to the Bloggers!" A stunning admission that the alternative media outlets are scaring the crap out of our renegade government! I guess it comes down to this: Who do you trust more...me or Barry?? :-)
