Anyone Watching the Global Economy?

[OnMyWay]

35 minutes ago, JJReyes said:

The Federal Deposit Insurance Corporation (FDIC) is a pooled fund that all banks are required to contribute.  In theory, it is not taxpayer money, unless there are multiple bank failure, and the FDIC starts to run out of money.

They don't have enough money on hand for even one large bank failure.  Usually less than 50 billion.  They get some kind of special loan from the treasury, so the taxpayers get nicked, one way or another.

[Snowy79]

5 hours ago, OnMyWay said:

This rate of appreciation is not sustainable.   Who will buy these overpriced properties?  Chinese?

There's still a lot of land in the Philippines where celebrities and Politicians are happy to hide their money. The land opposite my condo had sat pretty much empty for the last 6yrs. In the last 12 months seriously large homes have started popping up, all the original lots sold and now they are clearing out another large area of squatters and have already started putting new roads in. The original lots averaged 10m for a lot about 30ft x 30ft. Some have bought 4 lots together to build their homes on..

[Possum]

1 hour ago, Snowy79 said:

There's still a lot of land in the Philippines where celebrities and Politicians are happy to hide their money.

When the wife and I discuss how these people get all this money, especially politicians she reminds me that bank secrecy laws in the Philippines are some of the strictest in the world.

[Joey G]

In the confusion... there is profit.

 

[JJReyes]

We already have substantial stocks in Canadian gold producing companies purchased two years ago.  They pay dividends and the value should increase as the price of gold climbs due to the current uncertainty.  Can't find other worthy stocks to purchase at the moment.  Global real estate is already in a bubble.  Developer prices are not sustainable.  Lots of owners are trying to sell in the resale market, but their asking prices are highly inflated.  I might purchase short term CDs, on a staggered basis, now that interest is above 4% per annum. 

[Dave Hounddriver]

2 hours ago, JJReyes said:

Can't find other worthy stocks to purchase at the moment

Have you looked at Ares Capital Corporation  (NASDAQ: ARCC). It has survived the last 2 disasters (2009 and 2020).  The price is relatively stable, better than usual right now.  The dividend is close to 50 cents a quarter so 2/18 * 100 = 11% dividend at current prices.

[Joey G]

We just go with weighted SP500 and DJIA ETF's... hasn't failed us yet.  If the top 500 go broke... it's new world order and money won't be worth anything.

If the day comes I need gold to buy groceries.... it's gonna be a free for all circus in the streets. 

[Kingpin]

4 hours ago, JJReyes said:

 I might purchase short term CDs, on a staggered basis, now that interest is above 4%

Why CD and not high-rate savings account?

[OnMyWay]

5 hours ago, Dave Hounddriver said:

Have you looked at Ares Capital Corporation  (NASDAQ: ARCC). It has survived the last 2 disasters (2009 and 2020).  The price is relatively stable, better than usual right now.  The dividend is close to 50 cents a quarter so 2/18 * 100 = 11% dividend at current prices.

Looks like one to keep an eye on for a future purchase but if we are on the brink of major financial issues, I would not touch it now.  Look at the price in 2008/2009.

[JJReyes]

On 3/13/2023 at 12:04 PM, Greglm said:

Right now super safe US series I bonds are paying a little under 7% but you can't buy but $10000 a year for one account. However you can buy in your children's name also.

Thanks for the heads up.  Instead of CDs with my bank, I will open a www.treasurydirect.gov account after returning to the US later this month.  Series I Savings Bonds is currently paying 6.89%, which is great.  There is, of course, a maximum per person.  Same website allows you to purchase T-Bills with maturity dates of 4 to 52 weeks.  The minimum amount is $100, and the maximum is never mind ($10 million).  Electronic form only and the interest is taxable as federal income, but not state or local government.  No commissions or fees to brokers and banks since the website is US Treasury.