Financial advisor interviews guest experts from around the world.
Grand Rapids, MI -- (SBWIRE) -- 04/02/2013 -- Financial advisor Dennis Tubbergen can usually be found helping his clients. When he has a few free minutes he is usually writing his daily blog, his weekly newsletter Moving Markets or interviewing his next guest expert for his weekly radio show.
Tubbergen's next guest is David Eifrig, Jr., M.D., M.B.A. of Stansberry & Associates Investment Research. Dr. Eifrig is the editor of two of Stansberry's best advisory services: Retirement Millionaire is a monthly letter showing readers how to live a millionaire lifestyle on "less than you'd imagine possible." Dr. Eifrig also pens Retirement Trader, a bi-monthly advisory.
Dr. Eifrig holds an MBA from Kellogg and has worked in arbitrage and trading groups with major Wall Street investment banks, including Goldman Sachs. In 1995 he retired from the "Street," attended medical school and became an opthamologist. In his latest version of retirement he has joined Stansberry & Associates full-time to share his experiences and ideas with readers.
Tubbergen, who is an author, radio show host, and CEO of PLP Advisors, LLC, spends a lot of time giving his opinions on the economy in his online financial blog. On March 28, his blog was titled Cyprus Can Happen Almost Anywhere.
"Business Insider ran an article commenting on how quickly an economy can regress 50 years as has happened over the last few weeks in Cyprus," began Tubbergen.
Below he quotes from the March 20, 2013 article, which focuses on not just the trouble with banks being closed and accounts being in jeopardy, but the fact this is happening in a modern, eurozone nation.
SocGen's Ciaran O'Hagan argues in a note that the market (which hasn't really moved at all on Cyprus) is being too blase about the whole thing.
It's incredible that this can happen, and the precedent it's set will linger for a long time, if not permanently.
He writes in a note:
In a matter of days, a modern, functioning Western economy has been transformed into a cash economy, if not quite a barter one yet. Coinage is being hoarded, stores are refusing credit cards, commercial credit has ceased.
True, that can all be quickly reversed if a compromise is conjured up now. What will never be reversed so easily is the threat of capital controls in a supposed monetary union. The Republic of Cyprus may still avoid such a draconian measure. But that's not the point. If the Cyprus economy can be sent backwards 50 years so easily, we now know the same can happen to other euro area members. And in a matter of a few days, as we've just seen. And the next crisis (surely there will be more) is likely to hit a member with a large and functioning bond market. Investors will be quicker next time round to remember the precedents set by the Cypriot Republic.
As we argued earlier. The Eurozone is a gigantic wreck, and its luck appears to be running out.
"When financial systems fail, commerce based in credit stops," explains Tubbergen.
"As the article states, the Cyprus economy has been transformed into a cash and barter economy with stores refusing credit cards since the business owners don't know if the banks will be able to pay them," explains Tubbergen. "Cyprus banks remained closed as of the time this article was written, resulting in no credit to anyone."
According to Tubbergen, if you have cash, precious metals or can barter, you can do business. If you don't, you can't.
"I write about this in my most recent book, Finding Financial Freedom," states Tubbergen. "In the book, I advise folks to accumulate at least one month's living expenses in gold or silver and store it somewhere that's accessible."
Tubbergen's bottom line here?
"Cyprus could happen almost anywhere," he concludes.
To read the blog in its entirety go to http://www.dennistubbergen.com and select his March 28, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to www.moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.