One of the biggest problems with modern society is that most people think that if they ever got into financial problems, the government will be there to rescue them. That is the issue: this dependence on our government to “sort things out” for us.
For example, if you live in the UK, your savings are “protected” up to £85,000 ($130,000 USD). So if the proverbial S*** hits the fan, your savings will come out of it unscathed (as long as it is less than £85,000).
I want to ask you something.
Where do you think that money is going to come from? What guarantee is there that the government will honour their promise?
Today it was announced by Moody’s that they are downgrading the credit rating of 12 UK banks because they doubt that the UK government will be able to support them in a time of crisis. How reassuring!
Governments make all kinds of promises. History has taught us that lesson many times. What makes you so sure that they will keep their promises this time? What if they said to you tomorrow – “Sorry, there is no more money left”.
No Solution
Let’s face it. Your leaders and governments do not have a solution to this economic crisis. The banks have no solution to the mess they have created. Nobody has a solution to it.
Oh don’t get me wrong. There are plenty of media and TV pundits out there exhorting their own brand of how they can fix this crisis. I will leave you to judge the merits of their “rescue plan”.
I am going to be quite honest here. I have no solution, nor do I pretend to have one. In fact, I am not looking for one either. As I said on the BBC, my job is to make money from this opportunity and to guide people to do the same. And this financial mess is an opportunity – just like it was in the 1930s and in 2008.
The Morality of Doing Nothing
It is understandable that people find the idea of profiting from a market crash as immoral or deplorable. But that is the “job” of a trader. In the same way that a plumber fixes pipes and a fireman puts out a fire, a trader has to be able to make money no matter what the market conditions.
The difference is that I am willing to help people, as I have done for five years, to learn how to be able to profit from a falling market. That was the whole idea behind this website.
Is it risky? Yes. But I believe doing nothing, or trying to catch a falling knife by buying declining stocks is even riskier.
Conclusion
In the old days you could have said that if you do nothing, you lose nothing. That is no longer true. Nowadays, if you do nothing, you lose everything. Not all at once – it usually takes 10 to 20 years. So the time to act is now.
In upcoming posts I am going to teach you a simple but effective strategy that I learnt from a seasoned American trader as to how you can use this downward market to your advantage.
Also, let me know what you think of the views I expressed in this article by writing me your comments below (whether or not you agree with me).
Alessio, i like your honesty about the situation. But there never seems to be any simple straightforward advice – just a description of the situation…
Your readers want advice like is GOLD still a good buy? Is it best to go into 10 year Bonds etc etc.
Matt – I hear you. I am going to do that in the video alerts (see the top part of the blog page). I will also post more on gold, silver and bonds on my blog soon.
Caro amigo
Acho que o melhor que você pode fazer para nós é contar o que de fato acontece dentro daquilo que se chama Mercado. Se fizer isso, se colocar uma luz nessa escuridão, já terá feito o melhor de si para nos ensinar a como agir.
Do you put any credibility in the story re: “anonymous” and the NYSE? If so, what can be done between now and Monday?
I think I”m more confused as to what to do now than before. One thing I do agree on is we’re heading for a dip/crash.
for those of us w/401ks, is now the time to move the funds to more secure bond funds/large cap?
for those of us with a few stocks, is now the time to buy some treasury bill etfs?
for those of us with a few thousand to invest, is now the time to buy dollars?
By a call on the VIX?
I believe the answer to those questions is YES! what say you?
Thanks!
Paul
If the value of money is going down and possibly could become worthless why are you trying to accumulate more of it?
I know nothing of economy, but fear makes me study it, starting from a few books and articles.
I don’t care to become a trader and know how to calculate compunt inderest, but to understand what exactly money is and how it flows (so to speak)
Right now I’m thinking GOLD, solid, to keep in a safe.
Also I’m prepearing: buying a little extra every time I shop.
Buy now what I might not be able to buy tomorrow for a reason (money has less and less value) or another (there is less far left to buy)
where is the best place to buy gold?
do you deal in bitcoins?
sorry for all these questions!
Alessio, keep doing what you are doing and I am very interested in you take on the Gold and Silver markets as I have been following Mike Dillard , Michael Maloney (Goldsilver.com), David Morgan, Jim Sinclair, Jim Rogers, Gerald Celente, and others.
Hey Alessio, I’ve just been turned onto you via the BBC interview and laughed at the audacity you had – not in being ‘a ruthless trader’, but ‘in telling it like it is’! Rather than wanting to shoot you as the messenger, I’m very aware of the criminal banking cabal that hides in plain sight. Okay – so as Matt says – what do we do? If the banks are being downgraded and one day you may turn up to find your money gone and the bank closed – what should you do with your savings before this happens? What do you do with yours for example? A comedian called Ken Dodd was arrested for tax evasion. He had stuffed his money inside his mattress! Is that the way to go? Seriously though, in terms of making money, as a lay person whose closest dalliance with stocks was via Wall Street:the movie – what are some of the very basics to do if you know NOTHING?? You mentioned in the World Service interview areas that increase in value in a recession eg. Pound shops – What else was on your list! Finally if you are giving away all these tips, doesn’t it mean you lose your advantage and some of your profits!? All good stuff though. Thanks for doing this! x
Couldn’t agree more with couple poster on here. I like what you have done so far, Alessio! but reader like me, need to know more. Simple but clear & straightforward advice would be helpful.
Is Silver/Gold still a good buy now?
Should I move my 401k into cash alike/low interest account?
Is it a good idea to keep cash more or less @ home.
Use extra money & buy properties (land, home) etc…
Let’s keep the list going…..
Good work Alessio! Keep it up.
Only thing I disagree with is your belief it will take 10-20 years to lose everything. In these volatile markets with sovereign debt as humongus as it is, and time spans speeded up with the internet, I think it could all come tumbling down very fast. Don’t you? Remember the graph of the e logarithm and how quickly it speeds up to infinity after being linearly slow for decades.
For those with any savings, don’t expect the FDIC to be able to pay for every deposit in every bank they insure — they don’t have the money. Dollar savings are safest in short term US Treasuries, e.g. in TreasuryDirect.gov.
Hi amanda – thanks for your comment. No, you don’t lose an advantage. The thing is that the market is big enough for everyone to make money from. I will post more tips and educational material (as well as book resources for you to learn) on my blog soon.
Thanks Jackie!!
Chris
October 7, 2011 at 3:04 pm
If the value of money is going down and possibly could become worthless why are you trying to accumulate more of it?
very good question
Keep it coming, Alessio. The hypocrisy of a Labour minister laying in to you for your attempts to help ordinary people out of the pit dug for us …by politicians…made me feel queasy. What irony! Never forget those of us who have been waiting for someone like you with the cahones to tell us the truth. Blue pill, red pill…
Love what you are doing Alessio… Amazing on BBC!
Just follow the trend. Long in uptrend, short in downtrend. Sounds easy, but a difficult job actually, ‘experts’ always have the opposite opinion…
Technical indicators told me the trend is going down.
The only way to save the world…. just let it recession…
Great blog Alessio and very glad to see someone actually speak the truth on TV and say it like it is.
Now for me, I am in a similar position to many of the other comment makers.
What do the ones like us who have been sensible and have SAVED and lived within our means do with the money in the bank? My biggest concern about all of this is exactly what you have blogged right here – what are the chances I never see my money again? Will I be no better off than the people who have abused credit and have debts? Will they be able to honour the £85,000 per institution/bank? I have my money spread across a few banks, but feel like it isn’t enough and I am contemplating spreading it further. The other option is taking it out and wedging it under my matress! I have been also been considering investing in gold and silver too – I still believe it will rise again very quickly in the coming few months and could still have a way to go before it reaches the top.
My other issue is I am looking to buy my first home… obviously not a good time to be doing it – I am holding out as much as I can. My main worry is making sure my money is still in my bank when the times comes to buy…. or do I buy now before I lose it all 😉
Very nicely said! Well done.
looking forward to next article.
Similar to previous questions,if the banks/savings are risky and the currency could become worthless,if you gain from the stock market falling or certain stocks rising after a crash,how do you retrieve your gains if the banks are gone and the currency is worthless what’s the point?Would you not just be better buying any physical asset like gold,tins of food,dried pasta anything that doesn’t perish that will retain value and can be traded.Is this all about making a quick kill retrieving the money and then buying assets quickly?
Hey Alessio, I’m from Pakistan, We’ll yea tht’s surprizing butt after tht BBC interview u dazzled my miss fortunes and it felt in a way tht Hmm he is the Man tht one should be Afterall Seriously and i’m saying this from my High School Experience and trust me i Earned quite a little fortune in the heap of the rescission making people buying online stuff in the initials of the rescission and thn earning a fortune. The part you portray and seriosly forget bout the Hippocrates you’re dead right, there’s no helping hand in heap of all this anxiety you gotta the be change. I’m looking forwaard to your future insights. Rest assured u might already hav changed a life. Cheers..!
Hurry up, Alessio!
I have just read that a member or adviser to the IMF, Mr. Robert Shapiro, has stated that the bank system can collapse within 2-3 weeks.
Do you agree with him?
Furthermore: Greece has just decided to spend 1 billion euro in the purchase of 400 tanks (I really did not know that Greece had so much money)
What is the meaning of this decision? Simply to waste money? To assure that the government will be able to face the people in case of an inminent bankruptcy?
Many thanks for your comments
Can’t have QE3 without a market crash.
Agree with many of the comments – I tend to think people watch these shows ready to judge people when they make comments that confront their beliefs without really thinking about where that person might be coming from. Your comments made me find you on social media and I’m looking forward to reading and gaining some practical insights from your articles. Bring it on!
I agree with everything you say, i have been a trader since 2004 and made big money in 2008 and i will do it again because thats what i am a trader, i will just follow the trend and thats what all great traders do there is nothing else everything else is just noise, i do not care for story’s price and volume is the only thing i need to know, as much as you try to teach people this they just do not get it, they are always trying to find the holy grail of systems, one that will tell them when to buy and when to sell so they do not think.
it was great to see someone come out and tell the masses how the game is played, i am surprised they aired it, maybe next time take them deeper into the rabbit hole and explain how the big boys execute their front running techniques, that would be interesting, cheers from the land down under.
@Matt – about buying Gold & Silver – watch this video http://www.youtube.com/watch?v=E5VNAEmmBQM or visit http://www.goldsilver.com , and if you want to buy physical gold and silver you can do it here http://bit.ly/qjexSZ (I buy my Gold & Silver there). You can buy it and store in the secure vault or you can take physical delivery (this costs more due to VAT and delivery charges).
@Paul C – buy Gold and Silver. Or if you prefer paper, then buy mining stocks.
@Chris – He is accumulating more of it to buy more assets: precious metals, cashflowing property, in my opinion. When you have enough money you can invest in oil wells or gold mines – that’s the real wealth.
@Marco – My thinking exactly! I buy as much gold and silver as I can today, before $£€ gets completely debased.
@Amanda – I believe, Alessio, has a mentality of abundance (as opposed to mentality of scarcity), so his profits won’t fall because of him sharing all this info for FREE on this blog.
@Stu – re: buying your first home – you may want to watch this: http://www.youtube.com/watch?v=W90M73v3hbI
@Rob – “Is this all about making a quick kill retrieving the money and then buying assets quickly?” – My thoughts exactly!
@CArlos M – I think Greece is getting ready for a war
Regards
Ruslan
I agree with you.
I truly appreciate your utter honesty about the whole situation while other people would usually tend to sugar coat or put forth good words for denial or deception.
It’s amazing that you genuinely want to help people even given what you are earning now!
Amazing!
Alessio, i really like your analysis and i agree with you. Taking into account your comments what would you make if you had savings in a deposits in Spain, i mean, is better to cancel the deposits, maybe is better to take out the money from bank and change into dollars. whats your opinion.
We are at a turning point in history. We have a “religious” belief in economic growth. And where should this growth come from? From the resources of our planet. We have reached the peak-oil by now. Also other resources, like clean water and fertile land are rapidly disappearing world-wide. Resources are finite! The economy is only growing because of the money-bubbles that the financial world creates. The current financial system does not work anymore, because we are running out of resources. We should work towards an economy without growth. Instead of investing in gold etc., better buy a plot of land or a farm. Look here http://www.futurescenarios.org/
Why anyone still listens to Moodys or Standard and Poor these days is beyond me. Credibility? Anyone?
You say that anyone can do this, but I just tried setting up a bokerage account online and they requires that you have at least 15k available capital to sign up, and there is no guarantee that they will accept me even after that.
I’d say: Alessio for president ! For all that want a good understanding what’s happening: Mike Maloney http://www.youtube.com/watch?v=tj2s6vzErqY .Then you understand about gold and silver.
Prep yourself guys, because this is going to hit hard.
Alessio, I think you are very honest and clear in what you said on BBC television. I am a fan !
Agree with everything, Alessio!
Thank you for your valuable job.
Just want to share my experience with banks to folks spreading their money.
After devaluation, the accounts in all banks were frozen simultaneously (bank holidays).
My family lost all savings overnight. Then hyperinflation hit.
We were desperate to get money out of banks while they have some value,
but were not allowed. Accounts were open again when inflation left little of it.
Before crisis we can buy a house with our savings. After – I bought a hair drier.
Of course, there is nobody to complain. Whom to sue? The government?
When the big storm hit, everyone left on his own.
The costly lesson for us- relay nobody but ourselves.
Nice article and well said. I agree with you as I said before: recession is a great opportunity to invest and profit from it. You gotta know where to put your money though.
Your focus should be cash flow (businesses, rental real estate properties and stocks). In recession, property value, for example, usually falls, which means good time to buy and rent.
The prices for the metals are still really good and if you don’t have much financial education, I would say they are really easy investments and a good choice for most people, since all you have to do is buy, store it and wait for the best time to sell. Most people simply buy gold and silver and that’s why many of your commentators ask you to talk about it. I think gold and silver are a great investments, but it is mostly a protection for you wealth rather than a way to get rich or something.
Keep up the good work mate, keep speaking truth 😉
Good job for calling a spade a spade. I am not a trader so I don’t have the insight to see things from your point of view (i.e., how to make money from it). But I do try to see this from a global perspective, and I agree with you – nobody has a solution and even if they have it, they won’t be able to implement it. Key issue is that this kind of crisis spans interests and spheres of influences of more than one government, and given European track record of “agreeing on stuff”, they won’t be able to pull off a solution in time and with decisiveness that it requires. There is no real leader in Europe that can make decisions and make thigns happen; it is all consensus-based and hence doomed.
Good luck with trading, Alessio.
I believe that there is a solution for European crises, but the governments and banks are not willing to accept it. Very simple as that: re-structuing the current families debts, let say putting the current family debts at 0. This will boost demand.Re-structuring the current enterprise debt, let say putting the current debt ar 0. This boost investments. Who pays these debts? Those responsible for the current crises. The last mesure: scrap all EU regulamentation, and shrink the EU commission to simple regulator.
This is very interesting to have the point of view from a man insight the system, keep up telling your stories and advices, in any way Your actions are not in vain. A pleasure reading/viewing your activities here. Cheers from France.
all the best
Hi Alessio,
I saw the clip from ITV interview, they are just idiots and ignorants, they do not know how to respond to a strong comment. They were just making fun and they had no facts and figures. The way you presented on BBC there is nothing wrong in that. Fact is more people are listing to you now then before. People who use reasoning and logic will gather wealth, and unreasonable will keep moaning in shows like that and will regret one day. Keep up the good work.
simple question Alessio,Do you think the spx can rally to 1230 before xmas
Hi Alessio,
what would you do if you were me ?
I have about 20k euro in gold, 20k in Rabbo bank, 20k in English banks and about 70k in an Italian bank in Belgium (Monte Paschi). All cash in in Euro. This much paper cash is not safe but what should I do ?
Ive no property, no kids no mortgage.
i believe we’ve seen the worst of this decline in the stock market already (a mini 2008 say) as secular bear markets tend to end with whimpers and not bangs, and the sentiment has gotten really negative lately indicating that a rally of some kind is more likely going forward, and then sideways action with high inflation after that for years to come. best to buy commodities and gold/silver, mining stocks that are still the place to be
I have been telling people the same thing for years !!! People think that the Government owes them a favour when things go wrong just because they pay taxes…In some cases people expect help when they don’t pay taxes, just because they think they have a god given right to assistance.
My advice is simple: buy a home and a gun 🙂
Hi Alessio,
I’m reading your blog since you made yourself famous by telling the truth by your opinion. Very smart and helpful move! I trade on futures market myself as well. For now I’m 18 months since start of learning it and taking first trading plans into live account (with more or less success, but hey that’s how to learn trading) However, by reading some of your blog articles I wonder if you can prepare something also for Intraday and Daytraders (position trading) on futures markets. Can we profit on downward market in couple-of-days range too? Also, remembering one of comments you made in video for BBC, you mentioned hedging but also T-Bonds (UK/US). I couldn’t find info on your blog about T-Bonds and how to use them in recession.
Other than that, thank you very much for your point of view on these economics aspects. Have a nice days!
As with many people I found your site from your BBC interview, which prompted me to watch the film “Inside Job” – which prompted me to want to learn more about how to protect myself from corporate crime and government collusion. It also inspired me to open a brokerage account…anyways looking forward to reading your posts, so far I started reading Jason Kelly’s “The Neatest Little Guide to Stock Market Investing” which seems to be a good primer for a newbie such as myself.
Regarding the text of your post – I assume you include the FDIC as another entity that might default on it’s promises. Looking forward to hearing your tips….(and of course deciding for myself afterwards 🙂 )
kill the banks, buy gold
Listen to Alex Jones: http://www.prisonplanet.com/break-your-left-right-conditioning-alex-jones-sunday-edition.html
This six segment piece, is about everything going on, its so informitive everyone should listen and pass it on.
are you sure this will be deflationary rather than hyperinflationary?
they could just carry on QE to infinity and then stocks go up
hard to say which force will win
Fantastic approach!
I am glad I had the possibility to read it.
I am impatiently waiting for your upcoming posts
I have to thank you for your stories about your earlier mistakes and your strategies today. I agree with you that the market will go down, and so I traded it. But I didnt follow my stradegi, and you know the outcome. After reading about your experiences, mistakes and lesson learned, I finally realised that I cant take the high risks and go for the big money fast, as I tried to.
Many thanks, and keep up what you are doing
Alessio,
hey thank you so much for actually telling people the truth and not just being greedy, i appreciate your honesty and i look forward to trying out some of your trading strategies as they look well thought out and profitable.
Jeff
i think you should still write ur thoughts even when market is going up , not only when is falling down . that shows how good of trader u are
Thanks Alessio for telling the general masses the truth about the financial world! We need more people to open peoples eyes because everyone is getting shafted!
Alessio,
I just found your site from the Alex Jones interview. I have come to the same conclusions as you and have been scrambling to learn as much about trading as possible in order to not loose my shirt in the coming years. I love the site and I look forwards to diving into all the info you’ve got here.
James
Was this an infowars bump? I can’t believe how many comments were received on what is essentially a post of empty calories. Don’t get me wrong, what is to follow should be pretty good, but I don’t know that this particular post was quite worth the accolades it got.
You are right. There is no solution. For too long the western world has depended upon too much credit and created too much leverage. The credit bubble must deflate and a lot of the leverage must come out of the system. This is the solution that is being imposed and will continue to be imposed by the markets. The austerity in our lives will be imposed much more so by the markets rather than the governments. Let’s think about what has already happened. Policy makers in the U.S. and Europe have thrown everything they can at it. Multi-trillions of dollars and almost no traction has been gained in the western economies. The quicker we let the markets clear out the malinvestment, the quicker we will be able to resuscitate our economy. Although this is painful process, it is necessary. This is one of the key reasons why I agree with you about the markets having a downward bias.
I love Martinarmstrong.org. He has a following over half the New York Times, and is a genius.
His solution is you must roll the Euro into a single bond. But my theory is that Germany and France leave the Euro, and then Europe starts printing money. Lots of money…
Then Japan crashes. Then the US crashes.
And when that happens, politicians in their usual reactionary way declare the only solution is a new reserve currency (read more about special drawing rights and the IMF). Then the elite can really manipulate the world…
I wonder how many times Alession has been stopped out by trying to go short in this impressive bull market that started on March 2009? To all Alessios’ fans: This IS a bull market and profits are made on the way up, not down as Alessio is trying you to prepare for. Yeah the bull market will eventually peak, but when? I don’t know, but while the music is playing all we need to do is keep dancing.
Alessio
I have read your posts with great interest and I loved you on the BBC given straight talk to the UK ordnance. I do have a question.
I live in the UK and you say that if we put money into the UK banks, not going over the threshold they might not be able to pay us back which I do believe. BUT where do we put our money? For example you say invest in gold yes that’s great, but when we want to cash it in, when it rises to £2,500 where do we put the money? We can’t hide £200,000 under the mattress! Also we will need to have cash for living expenses.
The ‘rubicon’ of war with Iran approaches. Intertwine the EU breakdown crisis with chaos in the ‘straits of hormuz’, and it’s one big cluster F**k!
H Alessio. I appreciate what you are doing but be careful not to give financial advices as you are not licensed to do so. Some folks out there are trying to get you.
Thanks Didi.