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The Financial Crisis Began Five Years Ago
The Scale of intervention in the world markets since 2007 have been beyond extraordinary. The US Federal Reserve and the European Central Bank have made moves to stabilize the economies. The balance sheets of both the Fed and the ECB have ballooned in these short five years. The mortgage crisis was just the beginning.
Here is a list of US Fed and ECB Intervention:
- September 2007 US interest rates were cut from 5.25%-.25%
- March 2008 The Bear Stearns deal $30 Billion
- September 2008 $400 Billion for Fannie/Freddie
- September 2008 $85 Billion to purchase AIG
- September 2008 $25 Billion to save automakers GM and Chrysler
- October 2008 TARP $700 Billion
- October 2008 $540 Billion to secure money market funds
- October 2008 $280 Billion to secure CitiGroup liabilities
- November 2008 $40 Billion for AIG
- January 2009 $140 Billion to secure Bank of America liabilities
- January 2009 $787 Billion Stimulus
- July 2009 $3 Billion for Cash for Clunkers car program
- March 2009 QE1 $1.25 Trillion in Treasuries and Mortgage Debt purchased
- August 2010 $200-$300 Billion in Treasuries purchased
- November 2011 Operation Twist Exact Cost is not known
- November 2011 ECB LTRO 1 €490 Billion to loan to Banks
- March 2012 ECB LTRO 2 €530 Billion to loan to Banks
The central banks of the world have decided to put patches on the financial crisis. When will we once again have a major financial crisis? How are you protecting your future?
An easy way to protect your future is to diversify your portfolio with hard assets such as gold, silver and strategic metals. A safe secure means of implementing this strategy is utilizing a self-directed IRA. Through a self-directed plan, you control your own financial destiny and have the flexibility to choose exactly what you include in your portfolio. The great thing about hard assets is that you physically own them such as strategic metals which can be stockpiled for you with a view to returning them to the industrial market for a premium when supplies are further diminished.
The central banks of the world have only shown us that they are still willing to provide stimulus to their economies which is essentially putting a band aid on more medium to long term problems. Is QE3 around the corner?
For those holding fiat currency, such as the US Dollar or the Euro, the future looks uncertain