Tail Spin Economics – Lloyd’s Withdraws Its Money From European Banks

We must learn how to profit from today’s economic chaos, regardless of our current financial situation. The alternative is a continuous downhill slide and things are starting to go downhill pretty quickly…
Quite Concerned and For Good Cause
There is lots of gloomy financial news floating around these days, and although I’m really quite an optimist at heart, when something like this comes along, you can’t help but experience at bit (or lot) of anxiety, and become quite concerned over what’s happening?!!
Make Money Tips Red Flag
Without any warning, in early December of 2011 Lloyd’s of London, who is the oldest insurance marketer on the planet, has announced that it has withdrawn its money from all European banks.
According to Lloyd’s, the reason they made this move is that the banks are in danger of failing because of Europe’s debt crisis which presently shows no signs of recovery and continues to be getting worse. In fact, Lloyds own Finance Director recently stated:
“If you’re worried the government itself might be at risk, then you’re certainly worried the banks could be taken down with them.”
Which European governments Lloyds is referring to is unclear but it’s important to note that they didn’t just withdraw their money from Italian, Greek or Spanish banks; they withdrew their money from all of European banks entirely.
When a company whose core business has been calculating risks suddenly takes its money and runs, it is a huge red flag and a clear indication that the beginning of the end is near!
Tail Spin Economics
Any way you look at it, the European Economic Crisis is taking a serious nose dive and it’s becoming harder and more expensive for banks to operate, and therefore it’s also getting more difficult for the public to borrow money. As a result, companies end up having to pay more to borrow money which in turn has the result of higher prices on everything. When this happens consumers borrow less and spend less which causes Company earning to plummet, which lowers the taxes being paid, which causes government’s deficits to explode, which drives up the cost of borrowing even higher which in turn causes the nose dive to go into a total tail spin.
If you happen to be thinking that Europe’s problems are not going to affect the US, you better think again. It is only a matter of time until the U.S. gets slammed way harder than it did during the Great Depression of the early 1930’s.
Just check out a few of the headlines that are on page 1 of the news these days which we are all seeing.
1) US Debt hits 15 trillion and appears unstoppable (Google )
2) Debt crisis lessons from Latin America; Europe, if anything, is in a worse situation.
3) U.S. currency meltdown is underway
4) Rapid extinction of the American middle-class
Gloom and Doom Silver Lining
So, where are we going with all of this and “How can you protect or even grow your money during this economic crisis?”
There actually are strategies that you can truly profit from today’s economic chaos, regardless of your current financial situation. Just remember that the rich always get richer, and that you can too! It was during the great depression of the 1930’s that America saw its largest growth of millionaires than any time previous to the downfall. Sure the game has changed a bit since then but information and education is the key and you must be prepared to look at things with a new set of eyes.
From the greatest challenges also come the greatest opportunities.