First off, if you don’t read Denninger, you owe it to yourself to read these three posts:
Now many of you are asking ‘What does it mean to me?’ which is a question I’ve been asking myself as well. Instead of predicting the results of this (as I write this the Dow has lost 600+ points, and the futures market tonight is predicting another couple hundred points off as soon as the market opens tomorrow morning) I’m going to just throw out there what we’re thinking about doing:
- Get out of any debt that’s variable … for us it’s a small balance on a convenience credit card, but variable rate debt will be a very dangerous play.
- Deepen our foundation … There’s always those few things that are on the list that you should have … for us, many of those things are moving up on the list.
- Securing food … we’re buying another beef, and probably a few pigs. Going to fill up the freezer. We’re just about out of the beef we bought a while ago, so this isn’t exactly unplanned.
- Reviewing our living situation … We live in a suburb right now. We’re considering moving out to a place a bit more rural to give us some flexibility … the kind that you get with a few acres instead of a few thousand square feet of dirt.
- Liquidity into tangibles … this is part of deepening the foundation, but it also means buying some of the stuff we’ve been putting off.
Nobody knows for sure what will go down. Just be careful.
Oh, by the way … Remember in my Debt Bomb post I threw some currency valuations out there? The picture has simply continued to deteriorate. For example, we lost another $0.10 against the Swiss Franc, bringing the total loss in value over the last ten years to almost 60%.
The red line on this graph? That’s the price when I made that post, a little over a month ago. Like where the current value is? Me either.
Buckle up folks, it’s going to be bumpy. What are you going to do about it?