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Leverage: Good, Bad, and the Ugly

Jay Speaking at InvestFestJay Jolly Presents at InvestFest2009

Using his proprietary Money Map©, Jay drove the audience in Vancouver, British Columbia at InvestFest2009 around the world showing how the flow of money is temporarily sustainable while Central Banks are “printing” money with reckless abandon. 

Jay’s topics included: Money Creation, Real Estate market, Consumerism, International Trade, Government Action, Fiat Currency, Budget Deficit, Trade Deficit, Inflation, and the ugly condition of the U.S. economy.

Although the financial pundits claim that the credit freeze is thawing, Jay showed how the U.S. banks have yet to really resume lending to Joe and Jane Consumer.  Foreclosures have now transitioned from subprime “slime” loans to prime mortgages because well-meaning owners who have been current on their loans are walking away because of their home’s depressed value.  Why pay on a loan whose principal is thousands of dollars over the current market value?  Unemployment has risen to 9% with13.7 million people looking for work, a 25 year high.  Manufacturing contracted again last month, the 16th month in a a row of continued contraction.  Home prices continue to decline at a 19% annual rate.  In spite of the Fed (Federal Reserve) lowering short term interest rates to a mere 25 basis points, long term interest rates are rising as less buyers come to the table to buy U.S. government securities.

All of these problems are the result of excessive leverage.  Joe and Jane Consumer over-leveraged by purchasing a home they could not afford.  Mortgages were bundled together into Mortgaged Backed Securities (MBS) or Consolidated Debt Obligations (CDO) which were purchased by governments, hedge funds, and institutions around the world using additional leverage.  Lastly, insurance, known as Credit Default Swaps, was sold on these derivatives using even more leverage… all of this without any oversight or regulation… crazy!

In order to bail out financial institutions and auto companies, the U.S. is creating money out of thin air!  Although deflationary forces have dominated recently, all this new money in the system will ultimately result in high inflation and debasement of the U.S. dollar as the world’s Reserve Currency.

All is not lost, however.  Just like the Great Depression of the 1930′s, this financial crisis is one of the great opportunities, if not THE greatest opportunity in our lifetime.  And Jay can educate you on how to take advantage of it.  Please stay tuned for future updates from Jay.

To learn more and contact Jay, goto: 


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  1. 3 Comment(s)

  2. By I Make Thousands of Dollars a Month Posting Links on Google from Home | Reply

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  3. By KonstantinMiller | Reply

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  4. By Sdanektir | Reply

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