STEP 1: How to PLAN for the coming BUST in the B-B-B Cycle
Written on the 14 October 2016 by James Cagney
I travel around Australia on planes a great deal. I am always vigilant and amazed at the rubbish some people read. Many read city and regional newspapers which concentrate mostly on what a bad deal their area they gets from the federal government, state governments and councils. They prominently feature local news, all sorts of inane gossip and of course sports news . The readers get an opportunity to agree with the whingeing of the public about anything and everything. Negativity abounds.
I also notice the number of people reading magazines which feature celebrities and their private lives. Who is separating and getting divorced? Who is cheating on their wives and partners? What are the Royals doing? Brad Pitt and Angelina Jolie snippets! What former wife Jennifer Aniston says about it? Who is having a face lift, a body tuck or plastic surgery? These readers are seeking to escape from their dull, uneventful and boringly unfulfilled lives.
I am astounded at how much nonsence people read! Useless information (true or not) which will be of no benefit in the coming BUST in the BOOM-BUBBLE-BUST Cycle. Just my opinion!
What about the important news that is going to affect their lives in the next five years? What is happening in the economy, the stock market, the property market, the job market. What about our balance of payments, demographic trends, spending trends, credit trends, etc. What about the information which is going to help us survive the coming financial crises? Apparently this news is not as important as what these sensation seeking magazines and newspapers like to report.
What we do is pretend our economic problems do not exist. Or, the future is so unpalatable that we would rather not even look at it. We are delude into thinking that if we forget about it 'it' will go away. Once again our attitude of "She'll be right mate" reigns supreme. I find it so frustrating that people prefer to bury their heads in the sand rather than face reality! My wife has to constantly remind me that mine is not the only opinion, and that not all people think like me! Who can say what is normal?
The problem is compounded because the mainstream press will not tell you the whole truth because it is bad for business. They need advertising revenue to survive and bad news of a coming financial crisis is just not a popular subject. The large construction and building companies would not be happy if people stopped buying their oversuffer if people held back on spending and buying their goods - especially with easy credit terms, which tempt us to buy more than we can really afford. So the newspapers talk about superfluous matters which won't upset big business so they can rake in the advertising money.
No one wants to think about, talk about or write about a financial crisis that no one wants to happen especially the people who are responsible for it like the bankers and the politicians. Do you think our political leaders tell you the truth. That there is a big problem in our the economy right now and a financial crises is looming. It's bad for their popularity ratings. They cannot admit that today's economy is propped up by excess credit, liberally given by the international and local banks and already out of control in Australia. These politicians will also have to admit that the whole system is vulnerable to a disastrous correction, just like we had in the Global Financial Crises in 2008. Not popular politics and not something a political party wants on their watch. Politicians in Australia are so busy fixing the symptoms instead of trying to fix the root cause of the problem
The words of Jack Nicholson from the movie A Few Good Men ringing in my ears: "You can't handle the truth". Well it's time to face the truth and do something about your life. Start TODAY!
What I am going to do in this article is to follow the procedure for effective Goal Setting so we can PLAN for the coming BUST in the BOOM-BUBBLE-BUST Cycle. Think about it - if you were going on holiday is this what you would ask yourself:
1. Where are we now?
That is exactly how we PLAN our STRATEGY for our future
STEP 1: "Where we are now?" is where we will start. We will cover the following subjects:
1) Global government and private debt levels.
Global Government and Private Debt
Australia's Large Government Debt
Our Social System which we cannot afford
Our increasing personal debt
I am not a stock broker or a financial planner and therefore cannot give you financial advice. What I will do is give you the facts and websites that you can go to get this advice. I am a licensed real estate agent, and a principal of IRPS Associates Pty Ltd T/A Australia Hot Property. I am a credit representative for Asset Finance Services Pty Ltd. I am licensed to give you advice on investing in property and advice on the most appropriate loans to suit your personal circumstances. We do have reputable professionals within the Australian Investment Property Network (AIPN) to whom we can refer you: i.e. accountants, financial planners, valuers, and more. Contact James Cagney on 0416 134 646 or click >>> HERE for more information.
When it comes to other investments I do prefer to leave it to the experts like Vern Gowdie of Port Phillip Publishing Pty Ltd. I glean a great deal of my knowledge and material from them.This company has a number of publications to which you can become a subscribe. These will provide you with a wealth of information regarding shares, commodities, property and much more. I am a subscriber to one of their newsletters and recommend you do the same. There are a number of publications from which to choose. We have no commercial arrangement with these publishers and receive no financial incentives for our recommendation. You can access their website on www.portphillippublishing.com.au
The next article I wrote focuses on the following step in the Goal Setting Process "Where do we want to go". For this important next step click >>>> STEP2. Don't say you will do it later, tomorrow, on the weekend etc. etc. You do not have the luxury of time to prepare for the BUST, Do it NOW.
If you have not read any of the other articles I have written in the series on Inflation; Demographic Trends; Spending Trends; How the generations affect the BOOM-BUBBLE-BUST Cycle then go to www.jamescagney.com.au . Scroll down to the news section on the Home Page and click on the link to follow the series.
This is not financial advice. You should not act solely on the basis of the material contained in this Property Update for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
This information was written and compiled by James Cagney. The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Author: James Cagney