2012 Financial End Game

Get All The Support And Guidance You Need To Survive The Latest Global Financial Crisis And Come Out On Top!


The current global financial crisis has its roots embedded in the
collapse of the subprime markets in the United States. As at October
2007 there was an estimated loss on the subprime market of
approximately $250 billion. If you want to come out on top, you have
come to the right place.
2012 Financial End Game
How to profit from the global crisis and make big bucks big time!
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Chapter 1:
Global Financial Crisis Basics
Synopsis
Whilst at that time the subprime collapse seemed catastrophic, the
reduction in the subprime market was in essence relatively limited
and was a localized event. The effects of the event though did not in
fact remain limited and localized.
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The Basics
There has since been an expected cumulative loss of $4,700 billion in
world output associated with the crisis. The loss in world output
represents a figure that is close to twenty times greater than the loss
experienced in the collapsed subprime market.
Though this loss is considerable, the impact on the decrease in stock
market capitalization from July 2007 until November 2008 alone was
calculated to have been $26,400 billion which was one hundred times
greater than the loss on the subprime market in the United States
where the crisis actually began.
Two questions have to be asked. How was it possible for the
subprime crisis in the United States to occur and how was it possible
for such a relatively limited and localized crisis to have been able to
cause a crisis of such magnitude to world earnings?
The basics would indicate that there were fundamental flaws existing
in the scrutinizing of the subprime market. Very importantly, the risk
of the assets was understated and the balance sheets of the derived
securities were not transparent to those buying into the risk.
When the crisis began there were two amplifying mechanisms behind
the crisis which accelerated the rate of collapse, firstly there began the
sale of assets to satisfy liquidity and this was followed by the rapid
sale of even more assets to re establish capital ratios.
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The fact that the crisis rapidly spread globally was the result of the
interconnectedness between banking institutions both nationally and
internationally and the high levels of leveraging of the financial
system as a whole.
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Chapter 2:
Using Bonds
Synopsis
Whilst the term bond is mentioned and talked about considerably in
financial circles few people outside of those circles really understand
what a bond actually is. If we were to think of a bond as another form
of an IOU it becomes easier to comprehend how bonds function.
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About Bonds
A bond is a debt security in which the authorized issuer offers the
holder a debt and depending on the terms of the bond the issuer is
obliged to pay interest to use and or to repay the principal at a later
date which is termed maturity.
A bond is in essence a type of loan. It provides the borrower with
eternal funds to finance long term investments or in the case of
Government bonds, to finance current expenditure.
Bonds offer much greater security than shares as there is virtually no
risk involved. Bonds and treasury bonds are often utilized by
investors when the stock market looks scary and unstable and there is
a need for security.
Bonds perform differently to shares and move in the opposite
direction of interest rates. When rates rise bonds fall and conversely
when rates fall bonds will rise.
More complicated than shares, bonds come in an endless variety. For
small investors considering debt investing the buying of bond mutual
funds is advisable. Bond funds are free of the liquidity of individual
bonds and investors can use them to diversify their holdings.
The security of bonds makes them a very attractive addition to any
portfolio. The inclusion of bonds can keep a portfolio afloat. They
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are able to offer a cushion of stability against the unpredictability of
stocks. People who are already retired or are entering retirement
should ensure the inclusion of bonds in their investment portfolios as
they will provide a certain income with minimal risk.
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Chapter 3:
Cashing In On Precious Metals
Synopsis
There is much talk of investment in precious metals and investors
might question why there is a move to this area of the markets.
Precious metals are used to manufacture such every day commodities
as coins and jewelry to name just two.
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Gold And Such
With the increase in world population the demand for these items
increases and the consumption of precious metals is ...