Posted on 03/03/2012 7:44:51 PM PST by blam
DAVID STOCKMAN: You'd Be A Fool To Hold Anything But Cash Now
Marsh 3, 2012
NEW YORK (AP) — He was an architect of one of the biggest tax cuts in U.S. history. He spent much of his career after politics using borrowed money to take over companies. He targeted the riskiest ones that most investors shunned — car-parts makers, textile mills.
That is one image of David Stockman, the former White House budget director who, after resigning in protest over deficit spending, made a fortune in corporate buyouts.
But spend time with him and you discover this former wunderkind of the Reagan revolution is many other things now — an advocate for higher taxes, a critic of the work that made him rich and a scared investor who doesn't own a single stock for fear of another financial crisis.
Stockman suggests you'd be a fool to hold anything but cash now, and maybe a few bars of gold. He thinks the Federal Reserve's efforts to ease the pain from the collapse of our "national leveraged buyout" — his term for decades of reckless, debt-fueled spending by government, families and companies — is pumping stock and bond markets to dangerous heights.
Known for his grasp of budgetary minutiae, first as a Michigan congressman and then as Reagan's budget director, Stockman still dazzles with his command of numbers. Ask him about jobs, and he'll spit out government estimates for non-farm payrolls down to the tenth of a decimal point. Prod him again and, as from a grim pinata, more figures spill out: personal consumption expenditures, credit market debt and the clunky sounding but all-important non-residential fixed investment.
Stockman may seem as exciting as an insurance actuary, but he knows how to tell a good story.
(snip)
(Excerpt) Read more at businessinsider.com ...
I think he’s right which is why I’ve been long ammo, out of stocks and into fixed investments paying 4% for some time now.
Cash!?! For what, post-hyperinflation kindling?
glass half empty? Hell he says it’s bone dry...
One round of .22 LR will be the new $1 bill, 9mm will be the $5 and a .30-06 will be the new $20.
Long ammo is good - especially since the government is making it harder and harder to buy certain types. (45 rounds for instance)
9mm is good for barter. That is, if you’re not killed for it (not YOU personally).
I’m rich! I’m rich!
That's the part I can't get past. It renders Stockman a simpleton. A scumbag. Because he knows how much waste, fraud, corruption, and abuse goes on in government every second of the day, 24/7. And he advocates that normal, working taxpayers flush even more of their money down that toilet? Stockman simply has zero credibility.
I like the way you think.
You can see that Stockman hasn’t changed since the Reagan years. He can see the problem but doesn’t understand solutions. That’s what got him “fired” in the early 80’s.
In particular, his prescription for higher taxes and continued welfare state programs, albeit “means tested”, is laughably wrong-headed.
Cash? eh. If so, diversify with safer currencies. Hard assets for after and even that’s iffy —if we go full Venezuala there’ll be confiscation would be my best guess.
And some reasons why...
And a personal project...
Incremental ROI on injected capital year over year smoothed
Value <1 indicates Negative ROI for Injected Capital 
Entrepreneurs do not hire when there is a Negative ROI on incremental capital injection
What about bankrupt Kodak (EKDKQ)? Better odds than Las Vegas. ROFL.
We have to get through the deflation before we snap over into the hyperinflation. There will be a time to dump cash for assets and commodities, but now is not that time. Of course, it will be impossible to time it so you want to slowly dump cash at some point, probably when the fundamentals indicate genuine GDP growth and low unemployment. Around then, I think we’ll see a few years or decade of good economy and then BANG! INFLATION!
But what the hell do I know.
I just invested all my ammo in the stock market. Invested it in car company that makes some promising new kind of car called the volt
Somebody needs to send this article to the fools that bought California bonds. Those fools are asking for the screw. And
it may come sooner, than later.
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