RE: Some strange18 Sep 2018 11:39
buy sav, but keep a lot of cash.
I am one of those that think doom and gloom tbh. But then i was one of those that worked for an investment bank back in 2008 and sat in war rooms, with the bank of england on the conference phone asking wtf was going on. They didn't have a clue, as the banks kept it in the dark for the most part and didn't actual report their exposure correctly, its very easy for them to big up their tier 1 capital ratio's, reduce exposure through multiple use collateral items, government guarantees etc.
The same banks now have far fewer assets, but still have considerable exposure mostly in the form of government debt holdings or government debt collateral facilities.
In the same way that CDO's had unknown value due to junk rated mortgages that were being default on. We now have similar instruments but for government/country debt.
Nearly all governments have seen huge borrowing requirements (particularly the current US), This is fine as long as everybody believes in the country and there is strong demand for the debt currency.
By increasing tariffs, protectionism we have a massive risk, with companies now having 1 trillion dollar price tags without physical assets, or with few assets. We are entering a game of who is going to say enough is enough.
Unfortunately the QE side affects are still in the system, the same flags are showing, most of the asset managers/capital market experts are now old enough to remember 2008 or more importantly the way from 2005 onwards, the signs were ignored.
anyway enough of my blabbering, heres hoping sav does well, Lithium is certainly a product for the next 20 years.
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