How could you survive the collapse of the economy?

Discussion in 'Economics' started by Jamie J., Mar 17, 2016.

  1. botpro

    botpro

    duck and cover! :D
     
    #11     Mar 18, 2016
  2. botpro

    botpro

    Buying Put options on indices is a good idea, but the others are IMO questionable.
    For example buying Call options on metals or financials; why should that work out at all? IMO it can't.
     
    #12     Mar 18, 2016
  3. Handle123

    Handle123

    It might be cause between studying history going back 150 years of USA, and experiencing 38 years of trading and few times where I got to see what happens, I have made notes. I have charts going back in Wheat late 1800s, Cotton from World War One. Economies tank, people get layed off, they don't spend much except on beans to eat, very cheap meats if any, want to bet what direction of grains and meats go when no one can afford? Indexes drop like a rock, flight to safety happens and people put money into cash or financials, more cash, rates goes down and Bonds goes up-of course that does not mean easier to get a loan, quite the opposite. Gold often goes up when currencies seem like toilet paper. Soybeans peaked last year in May 1536, stock market high was May of last year, Soybeans today are under 900.

    You trade your money and I will trade mine., you will base your actions on what makes sense to you and I will trade as history shows us it repeats and I will hedge.
     
    #13     Mar 18, 2016
    John Barnes and endicottsteel like this.
  4. botpro

    botpro

    And what was the reason for such a peak in soybeans last year and then the fall since then by more than 40%? California water crisis maybe?
    I wouldn't have expected such a big volatility with commodities like such agro products, but I admit I've no experience with the commodities markets yet, just applying common sense.

    Buying gold is a good idea. But I think you make a cardinal error in your analysis of crisises with the financials: just remember what happened in the last financial crisis of the years 2007/2008: bank stocks plummeted...

    Before the crisis begins one should immediately get rid of too much cash: buy durable goods with it which will keep their value. Last seen in Russia last year...
    Ie. a kind of hedging...
     
    Last edited: Mar 18, 2016
    #14     Mar 18, 2016
  5. Handle123

    Handle123

    OMG, do you have any clue what you are posting? ROFLMAO California....Before you ask me any questions, try google.
     
    #15     Mar 18, 2016
  6. botpro

    botpro

    In other words: you have no clue of what you write, you can't back it.
    And: why me, it was you who brought his analysis, so you should back it with references...
     
    #16     Mar 18, 2016
  7. botpro

    botpro

    #17     Mar 18, 2016
  8. Handle123

    Handle123

    I looked over your posts and you seldom back up with references. There is something called being thoughtful and be thoughtless, for those who been in trading long time, we run under not putting up with thoughtless people and I consider you one of them by asking questions you could very easily look up yourself. And even your reference to California, where does it say they grow soybeans, it is always best when you use a reference to read it first, the states that grow the most soybeans is in Midwest. Soybeans often move as in direction of stock market, and am sure you are think why?

    http://extension.agron.iastate.edu/soybean/uses_soyproducts.html

    Soybeans is one crop with so many many uses, if economy doing well farmers are planting beans like mad and if economy is not doing well, they cut back the crop and grow more corn or wheat.
     
    #18     Mar 18, 2016
    endicottsteel, speedo and Redneck like this.
  9. AbbotAle

    AbbotAle

    The key to survival is simple, massively cut down on your monthly expenses to see it out.

    Create a budget and not only stick to it but play games to reduce even further. So if you need $1000 a month, see if you can save $100 that month.

    Economic crashes don't last forever so a) you'll be fine, and b) when it does end you'll probably realise you didn't need to spend all the cash you were spending pre-collapse.
     
    #19     Mar 18, 2016
  10. Arnie

    Arnie

    In a worse case scenario, wouldn't "good" be relative? Maybe the house and furntiture could be used for firewood?
     
    #20     Mar 18, 2016