Steve Saville shows how the Austrians would have advised handling the financial crisis - like Ron Paul said, HANDS OFF - in this article titled The Financial Crisis Will Soon Abate, But the Real Crisis Will Soon Begin. Throwing debt obligations at the problem is what created the problem, no? Well, now it has gone exponential.
Also, John Hussman - the fund manager who was bearish before bearish was cool has very interesting observations this morning as well. That domed house is more compelling the more I look at. Far be it for me to implore anyone to be bullish, but I implore you not to be part of the herd running toward slaughter simply because the media has gotten its teeth in the bit here and is lathering you up with hyper-intensity. Stupid media, always a day late, a dollar short and way too sensational.
My advice from NFTRH #2 was 'Tune out the noise and get safe' and that is still the case. But consider that beyond the acute panic phase, part of getting safe will mean investment; investment in something other than dollars, euros, yen and the other basket cases that represent the full faith and credit of these various governments. The overriding theme of NFTRH is and will be the right, hype-free combination of prudence, safety and CAPITAL APPRECIATION in ongoing inflation cycles. The media are to be used as contrary indicators first and foremost.
I like it when a guy like Hussman checks in on the same wavelength.
"Look – a few weeks ago, there was a $700 billion pile of money on the table, but the only way for Wall Street and bureaucrats to get their paws on it was to scare the public out of its collective gourd. They succeeded, but created the psychology that the U.S. was on the verge of depression if the bailout wasn't passed. Having created that psychology, the crisis took on a life of its own...
Investors will berate themselves for the panic they are now exhibiting. This, from an advisor that has adamantly argued for over a decade (with the exception of 2002-2003) that the stock market was strenuously overpriced and likely to deliver disappointing long-term returns. My impression is that investors who abandon properly diversified and carefully planned investments here, with the stock market already down by nearly half, will regret it as the emotionally panicked decision that wrecked their retirement prospects." -- Hussman
Separately, thank you all who got back to me about the email issue. It appears that things are working properly in most cases but there is something random here where a couple people's emails get through sometimes and get kicked back with a 'policy error' at other times. Very strange but I will continue to think about this and see what we can come up with before next weekend. Oh, and if there are any geeks out there - subscribers or not - who could help explain, I am all ears. And thanks. gt AT biiwii.com & info AT biiwii.com
