Thursday, October 08, 2009

Every Chart Tells A Story

Especially after posts like the last one, I get email asking for investment advice. I can't do it for obvious reasons. But I think it's clear we have someone running monetary policy who has proven himself just competent enough to be dangerous. And as I've said before, I think it's a huge risk to have one's personal savings completely exposed to the domestic dollar-denominated system. (Note: This is not a prediction about future nominal returns from U.S. equities.) Think about historical parallels and what others did or should have done to protect themselves. Talk to a financial advisor and tell him your concerns. If his solution is to buy stock in a U.S. company because it has operations overseas, find a new advisor. For those with significant assets, truly effective protection should include input from a good accountant and/or attorney. Always do everything legally, file required forms, etc.

Former Federal Reserve Governor Wayne Angell once said that a Fed chairman's performance can be measured by whether the price of gold is higher or lower than when he took office. This is what gold has done since October 24, 2005, the day Bush nominated Bernanke (click to enlarge):


Anonymous Anonymous said...

Next stop $1500?

10/09/2009 12:13 AM  
Anonymous Pete said...

How about Greenspan orchestrating the deflation of the late 90's?

10/09/2009 9:21 AM  
Anonymous Anonymous said...

A Nightmare on Wall Street 2: Enron's Revenge

How come we don't hear much about Don Regan, who was Ronald Reagan's Treasury Secretary and "swapped jobs" to become White House Chief of Staff. Talk about Wall Street taking over the White House! Reaganomics really was our downfall. Kind of ironic. Reagan might have gotten credit for the Berlin wall, but his administration and legacy seems to have brought us down too.

10/11/2009 6:19 PM  
Anonymous Pete said...

What a telling piece of empty intellect. What part of Reaganomics did us in?

10/11/2009 6:38 PM  
Anonymous Anonymous said...

What's your take on the Rolling Stones article, that Matt Taibbi wrote about, "how a scheme to flood the market with counterfeit stocks helped kill Bears Stearns and Lehman Brothers — and the feds have yet to bust the culprits."

Are there two separate problems, Fed and Wall Street, or is it just one and they are all in on it?

10/11/2009 9:03 PM  
Anonymous Anonymous said...

This is a good article to address that (comments good too): Was Ronald Reagan an Even Worse President Than George W. Bush?

It seems Reagan and Greenspan go hand-in-hand.

10/11/2009 9:33 PM  
Anonymous Pete said...

Reaganomics was supply side; period. Whatever else he did to govern didn't necessarily come from supply side theory. And if you would open your brain and study supply side theory, you would realize it includes alot more than tax reduction. You used the term "reagonomics," and then tried to fold every other criticism of Reagan under it.

How is demand side theory working out for you?

10/12/2009 9:44 PM  
Anonymous accompagnatrici milano said...

Here, I do not really imagine it is likely to have effect.

6/28/2011 3:10 AM  

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