Financial crisis pending

The Keating Report - The Financial Sphere

September 3rd, 2003

After talking with several people in the know about money matters, there seems to be a consensus of opinion that something may be happening financially.

Major investors and people of considerable wealth are pulling back, taking a hard look at their funds, preferring to stay much more liquid.

This is a curious sign, particularly because of the diversity of these big hitters and their ability to maintain monetary flexibility. I don't know if the inside players have made a concerted effort to spread the word about a pending financial crisis, but it certainly seems people from all areas are refusing to invest at their normal levels.

The average person should be somewhat concerned especially if they are investors at a much smaller level. Before the 1929 crash, the word hit the street that a dive was in the offing and many well connected people bailed on Wall Street well before the historical crash.

I'm not saying the market is going to crash just now. We are seeing important signs and hearing rumblings of something headed our way.

Too many people have backed off of their spending andinvesting causing serious concerns. Perhaps these playersdo know something, much like Joe Kennedy did in 1929.

There is just an eery sense of hesitation and doom. It could very well be that these power guys are feeling that funny feeling like the rest of us and are not privy to inside information.

No matter what it is, I do think the United States is headed for an economic hit soon. It's really tough to put money aside, but if we can, we should try to put something aside along with some extra food and water.

I don't know when so many people felt so strongly about investing or rather the need to stand firm. There was a knee jerk reaction after 9-11 that sent many investors running for cover. But today's climate is much more serious and it would be a good idea not to leap into major purchases until more information can be gathered.

The impression I'm getting is that at the very least, things will get quite tight.

� 2003 Kathleen Keating. All rights reserved