Global Banks And Insurance Companies Face Troubling Times Ahead
Doug Eberhardt | Jul 17, 2012 04:37AM ET
While Europeans leave the Euro and Euro bonds in droves for the safety and serenity of U.S. Treasuries, forcing the interest rates here in the U.S. on the 10 year to near record lows, currently at 1.45%, many, including myself, talk about the coming Treasury bubble once interest rates reverse course. But it’s not just the U.S. Treasury that is worried about higher rates, it’s the banking and insurance industries too, as higher rates would decimate both industries. This article will explain just what trouble they are going to be facing in the months and years ahead.
What caused me to delve into this analysis now was athe Fed and the U.S. Treasury who are worried about a bubble bursting with the rise in interest rates. Banks and Insurance Companies are facing the same type of problems. This presents an even stronger case in pointing out that most every investor in the U.S. has good reason to buy the only “real” safe haven that will be left standing; gold and silver. What percentage of your portfolio is invested in gold and silver bullion? Doesn’t it make sense for you to diversify?
You buy insurance for your home, auto, life, and health, but of these four things, how many do you actually collect on? Your portfolio, especially at this point in our nations history where the entire globe is financially interconnected by the Central Banking System, needs the insurance that physical gold and silver provide. All Central Banks own gold as insurance against their own currency problems. They always have. It’s about time you do to.
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