Our Market System Today

Since it looks like all the major banks and insurers will effectively be nationalized I’d say the stock market is unbelievably over priced. A banking system owned and operated by the U.S. government will be inefficient and a big money loser not unlike the U.S. Postal Service and Amtrak.

This may lead to a national insolvency and devaluation of the dollar. That would wipe out the debt holders, so China looks to be a very bad investment.

I’d say owning stocks is a very risky proposition. Cash will be king for a long, long time… although most currencies are probably not a safe haven either. The dollar looks to be “toxic” (most over used word of the year). So maybe precious metals are king for a long, long time?

Or perhaps real estate in countries not prone to devaluation? There will be some very good real estate values in three years to five years in the United States once the house of cards crashes to the ground.

Wow! Interesting times…