Why You Got Surprise by the Great Financial Crisis

Greece

Why did most of you get caught not knowing that Greece and Puerto Rico was in the middle of a financial crisis that will come down on you like a ton of bricks? Was it because a group of people from the banks to the Pension fund managers did not want you to see it coming?

 Well they did a good job of keeping you in the dark. I watch the World's Financial Markets from 8:00 PM to 6:00 PM every day, looking for stuff like this. I saw and tried to warn people for 3 years about Greece. But even me was caught off guard by the Puerto Rican crisis.  That is how secret this crisis was kept.   

Puerto Rico



Bate and Switch

Politicians do two things: they have their friends put out propaganda on personal media about how good things are going. Second, they monopolize the media, telling people other things to take up media time.

 

For example; the nightly news is 30 minutes long.  For 10 minutes, they have commercials and introductions. They have to pay the bills and they have to introduce the show.   

 

They spend 10 minutes talking about the major story going on at that minute such as, a politician caught sexing, a white man shooting up a Black Church, or Russia invading a country that they occupied at one time.  I am not saying that these stories are not important. I am saying that that someone decided to use all this time for these stories.

 

The last 10 minutes of the show is used to show some type of human interest stories such as a bear trying to get into a car. A cat standing up to a bear. One story I saw last week, a private rocket heading for the space station blew up and the Astronauts are not going to get their "Fruit Loops" this week.

 

But if you notice, the media cannot find time to tell you about a story that eventually affects your financial stability. You have to ask why?  

 

Click on the link below.

 http://www.msn.com/en-us/money/markets/puerto-rico-governor-calls-debt-unpayable-as-deadlines-loom/ar-AAcgJsB?ocid=ansbloom11

 

Puerto Rico Governor Calls Debt

Unpayable as Deadlines Loom

You May Ask How does it Affect Me?

 You may have retired already or you are planning to retire in the near future. The money that you are getting is guaranteed by the Pension Plan but the amount that you are getting may not be guaranteed by the Federal Government.   Your guarantee comes from the Pensions Investment Portfolio not the US Treasury.

One of the municipal funds your money may be invest into the Oppenheimer Funds directly or indirectly. One of the largest investments  in the fund is Puerto Rican Obligation Bonds.  Click on the link below to read about the fund.

https://www.oppenheimerfunds.com/investors/

Puerto Rico Gov. Alejandro Garcia Padilla surprised everyone coming out this week, saying that Puerto Rico cannot pay on its obligations.  Mutual Funds own these obligations.  If they do not pay the funds, investors will sell the funds.  The fund prices will fall, making these funds cheaper and the owners will lose its value. Who are the owners? The Pensioners like you. When it comes to getting your pension money, you will get less than what was promised or none at all.   

 

In my opinion, the world investment community knew about Greece for over 3 years but most just found out about Puerto Rico in the past few days.  The Millionaire's Confidence Index has gone from 16 to 6 recently.  The rich are not putting new money into the Stock Market or the bond market.  Many are not investing at all.  That is how bad the world economy is around the world.

 

As I keep telling people, we are not in a recession, this is the " First Great Depression of the 21st Century."