There are a few images that Wall Street conjures in the mind when you hear the words. You might picture rich, illustrious, executives arguing over the price of salt beef or oranges from behind their mahogany desks. Maybe you think of the deafening, vibrant, pulse of the shouting brokers as they buy and sell in seconds out on the trading floor. Whatever you picture, you would probably be surprised to find that the people on Wall Street are keeping secrets from you. Maybe you wouldn’t be surprised at all, given the relatively fresh wound left by the great recession. Wall Street makes money off of the things you don’t know and they don’t want you to be in control. They don’t want you to be aware of how they short you or how volatile the investment vehicles they back are. They certainly don’t want you to know how nefarious or even criminal their actions are while using your dollars. If you are questioning the market right now, you need to know what they won’t tell you on Wall Street.
The Market Isn’t As Strong As They Would Have You Believe
It wouldn’t make sense for financial advisors and investment firms to try to sell you a product that appears weak. You can bet that anyone trying to manage your portfolio with market strategies is going to promise returns and growth that will probably not happen. They can partly get away with doing that because everyone understands that the market can change rapidly and not all promises pan out. However, they are in part being disingenuous and taking advantage of people that aren’t paying attention. The truth is that the market has not recovered fully from the crisis that began in 2007 and probably never will. The liquidity of the market is heavily diminished, despite how much traders wish there were more dedicated risk takers. There are also less IPOs available, meaning less companies for people to invest in, stagnating the growth that Wall Street financial advisors promise. The amount of stocks available has dropped too, with less than half the amount that existed in 1998. With major market volatility in the last quarter of 2018, a lot of people are uneasy about the future of an already weakened market.
Your Investment Funds Are Making Them Rich
With a weak market, you might assume that the advisors and managers are making less or charging you smaller fees. The fact is that managers, brokers, and other Wall Street insiders are continuing to take massive slices out of your portfolio to pay themselves, even when the returns they promised don’t pan out. Not every financial advisor or broker intends to harm you or your family. Some really want to make a difference, but they are playing with a stacked deck or loaded dice that their superiors designed to take more from you. Millions of Americans invest in a qualified plan for their retirement savings, paying exorbitant fees to money managers. Unscrupulous managers still collect their pay check, even if it’s certain that you will outlive your retirement savings because of poor management or market performance.
You’re Still On The Hook For The Bail Out
Wall Street doesn’t want you to know that you are still loaning them money and propping up massive companies with your tax dollars. Millions of people lost a fortune a decade ago when the government bailed out banks and companies that were “too big to fail”, pointing to the possibility of a global depression. Matt Taibbi, in a Rolling Stone article titled “Secrets and Lies of the Bailout” outlined what really happened in the bailout, writing,
“It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyper concentrated new financial system that exacerbates the greed and inequality that caused the crash.”
Those banks that were “too big to fail”? They got bigger on the backs of American taxpayers. The original bailout that was proposed was a massive $700 billion dollars. It pales in comparison to the $7.7 trillion infusion that was revealed as a more accurate estimation in 2011. This secret bailout that was only revealed to the American people because Congress ordered an audit of the Federal Reserve. Who’s pocket does the money come from? Yours and mine. These banks are still too big, still practicing predatory practices, and set to steal more tax dollars from you and generations of Americans to come when the market dips again.
The Market Will Crash Again
What we have going on here is a Jenga type situation, where the precarious market is balanced on increasingly unstable investors who are ready to turn and run when the tower falls and leave us holding the bag. Noted economists are not joking about the fear of an imminent market crash being justified. The market is on the precipice of becoming a bear market with the plummet of the S&P 500 to within 90 points of that threshold recently. Consider all the factors affecting the future of the market right now. We are on the brink of a possible trade war with China, whose economy is slowing according to experts. Midterm elections are right around the corner and interest rates continue to rise despite a weaker dollar. Meanwhile, the markets continue to dip and finish below their starts or barely recover at the sound of the closing bell. Experts say that the average time between recessions is usually around 4 years and because of the secret bailout infusion, it’s now been a decade since the last recession. The structure is about to fall.
How Do You Prepare For The Shortcomings Of Wall Street?
With all the information that’s being hidden from people by the folks on Wall Street, why do people continue to trust them? A lot of us have been told that their game is the only one in town with a possible winner. The problem is that the winner will be them. There has to be another way to protect and grow wealth in a manner that preserves your legacy without greedy fingers having access to it.
Fortunately, there is a time tested way to increase your cash flow and protect your wealth. Before the advent of big investment into Wall Street and before most companies invested in qualified plans for their employees to replace pension funds, people saved with life insurance. Mutually owned life insurance companies have been economic staples in this country for more than 100 years. Some of these companies have whole life insurance options that carry a cash value and pay their policyholders a dividend annually. Unlike the stock market, many of these companies have continued to pay policyholders, even through the great depression. Experts that are aware of the changing economy and the broken financial system who aren’t out to get rich on your dime will recommend dividend paying whole life insurance. With whole life, you get a cash value in your policy and a guaranteed benefit for your family. However, if you know how to use the Infinite Banking Concept, you can do so much more with your life insurance policy. Essentially, you can assume the banking role in your life and use your cash value to stop relying on Wall Street.
At Factum Financial, we are all about education. We give people the financial wisdom to recognize the pitfalls of the traditional financial system. Our team of wealth strategists will work with you to create a specifically designed whole life insurance policy that gives you financial freedom and wealth protection. Contact our team today to see what we can do for you.
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