If you realize both parties in Washington think our money is theirs and you trust them to do the wrong thing, this list is for you.
If you think there is a Santa Claus who is going to get elected in Washington and cut a few taxes and spend a few trillion and jump start the economy, and get our lost money back, this list is not for you.
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Buy stocks, but oil and gas ETFs, buy the Euro and Swiss Franc ETFs. then wait and watch you make all your losses back within 5 years.
Money Quote : "My guess is that, at most, the Bernanke/Obama stimulus will buy two years before the hangover sets in. However, since this dose is so massive, the comedown will be equally horrific. My fear is that when the drug wears off, we will reach for that monetary syringe one last time. At that point, the dosage may be lethal, and the economy will die of hyperinflation."
mark
Well...we're still gonna die...the prediction now is not for two more years though.
I heard the Anchor Bots on CNBC today bemoaning the weak showing at the latest Treasury auction. The yield went up much more than planned. If the world economy is picking up, then the flight to safety US Gov bonds briefly enjoyed may be ending. In which case, the due bill for Obama’s spending binge will come much sooner than anticipated. I also got a chuckle when one of the Bots mentioned that the Fed might buy treasuries to keep the yield down. Sheesh.
They can't say HOW financial institutions are actually going to start lending and making money again. Who is going to be doing the borrowing when those who did in the past are now shown to be deadbeats or unemployed, with the remainder not wanting to borrow any money. The current business plan for most big financials is having Uncle Sam as voting stockholders.
They can't say how we're going to start creating jobs again, execept by trying to revive the former borrow-and-spend system that broke down and can't be revived.
They can't say how we're going to go through all of this housing inventory any time soon, much less have a building industry along with get homeowner's equity (i.e. net worth) back up. Are the unemployed and deadbeats going to start buying all the houses at re-jacked up prices?
They can't say what we're going to do with all of millions of square feet of commercial real estate.
They can't say what we're going to do with all of this consumer debt that won't get paid and the massive losses that will come with that.
They can't say what we're going to do about the destuction of our currency.
They can't say how we're going to pay the uncountable trillions of commitments in entitlements alone coming due in the next decade, nevermind the massive amounts of other spending that's heading over a cliff.
Etc. etc. etc. They just keep telling us that everything will get back to normal, but never give us the math.
I'm still saying to expect a bond dislocation in the short term (3-4 months)
Yup! Pay no attention to that man behind the curtain Dorothy.
Schiff is losing his marbles; the market is hanging on spider webs, and when they break there’ll be no warning. (actually the warning has already sounded)
This worked in the late 1970s, sort of... The trick was to find companies with assets that would benefit from the hyperinflation. Oil, coal, minerals. These all increase in value during inflation so the common stock acts as an inflation hedge. I suppose stocks could be rising these days as cash moves to equities. But, beware. Picking stocks in companies that are hurt by inflation will cost you plenty in capital losses. You need to chose wisely if you want the stock market to protect you from inflation. I BOT Alcoa recently because they control lots of Aluminum and the emerging world, according to those Coca Cola commercials from the 1970s, will be drinking lots of pop in cans! I'll be rich!!!!!!!!!!!