The Movie every American over the age of 18 should watch is the documentary ' Inside Job". It gives a detailed explanation that the layman can understand. It is all about the financial crisis of 2008. It is narrated by Matt Damon and it will get your blood boiling. I thought I knew a lot of what went down while it was happening but I leaned somethings I didn't know.
If you knew how close the world came to financial ruin while the biggest banks in the world sold us short the whole time. They made billions upon billions while the government bailed them out. The company AIG who insures all the police, fire, nurses,city,county pensions and retirement plans let your money be stolen you would be amazed. Not one CEO,CFO, Agency Head, Ratting Agency heads, not one person went to jail for criminal fraud where you and I would be doing 20 years. If you don't know much about what happened you really need to watch this.
The risk is still out there. The banks are too big to fail and they are still allowed to trade in derivatives such as the trillion dollar credit default swap market. A couple of weeks ago Bill Ackman a wall st sharpie Took out a credit default sawp for 26 milllion, he held it for a couple to 3 weeks and made 27 Billion. Who paid the 27 Billion, last time it would be AIG and they don't have the money, so who is the money man on this deal. Think about that kind of profit and there are trillions of dollars in the market. People don't have a clue as to how all the dead money is getting screwed. That is what people at wall st call regular investors "Dead Money"
Hank Paulson, Alan Greenspan, Larry SUmmers R, Chris Cox Head of SEC, All three CEO's of the rating agencies, Moody's ,TFitch and Standard and Poors. The heads of Fanni and Freddi Mac all of them should have gone to jail, Most got huge bonuses.
You guys should really watch this thing as it is disturbing beyond belief. If you think your money is safe I wouldn't have a dime over 250,000.00 in any one bank, it is all you are insured for. Move it around to other banks and keep below the 250,000. If you have a joint account they will insure it to 500,000.00
I am not a financial advisor never have been . I made some money in internet bubble but it gave me a stake which allowed me to get into the private lending market where I have been for over 20 years. I cannot compete with super computers and their algorithms. Even after 20 years of interest payments from 14-16 percent I moved most of my money to cash. I have a few deals left but I got a bad feeling about all of this. Once my few deals pay off I will be out and then I can get some distance to see how things go. I can always go back to private lending as the guy in charge is my dads old law partner and he offers the safest and sweetest deal.
The Dow Jones should be around 6000 and the Nasdaq around 2500. Markets are being falsely held up by the fed with trillions they are not advertising.
I use my gut and so far it has done me well.