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By Shalom P. Hamou (about the author)
Become a Fan -- Page 4 of 11 page(s)
They will be largely paid by the opportunity cost of not selling your assets.
Try to recover the money you are owned as soon as possible before The Crash.
Put your proceeds in Treasury Bills you will buy at TreasuryDirect!
Don't leave your money with a bank or a broker they will go broke.
Buy the bills at the Market price even if it is at a premium (negative interest rates).
It is better to pay for safekeeping your money rather than having it under a mattress and being robbed.
Don't buy gold, silver or any precious metal.
From the Friday 18tn, 2009 at 4:11 PM EST, stop to work you won't be paid for it: your debtor will become insolvent.
You can work if you need it to eat but ask to be paid upfront.
The Intrepid Strategy:
Apart from implementing the Prudent strategy you can play the intrepid strategy.
The strategy involves portfolios of Minerals, Bonds and Stocks.
However Alan Greenspan gives you a clear and stern warning:
"That is mission impossible. Indeed, the international financial community
has made numerous efforts in recent years to establish such oversight,
but none prevented or ameliorated the crisis that began last summer.
Much as we might wish otherwise, policy makers cannot reliably anticipate financial or
economic shocks or the consequences of economic imbalances.
Financial crises are characterized by discontinuous breaks in market pricing the timing of which
by definition must be unanticipated - if people see them coming, then the markets arbitrage them away.
The clear evidence of underpricing of risk did not prod
private sector risk management to tighten the reins.
In retrospect, it appears that the most market-savvy managers, although conscious that they were
taking extraordinary risks, succumbed to the concern that unless they continued to "get up and dance",
as ex-Citigroup CEO Chuck Prince memorably put it, they would irretrievably lose market share.
Instead, they gambled that they could keep adding to their risky positions and
still sell them out before the deluge. Most were wrong."
Alan Greenspan
The Age of Turbulence.
The use of the word deluge by Alan Greenspan is a clear reference to the Liquidity Trap.
And / Or a reference to that famous quote of that other famous economist:
Become a Fan -- Page 4 of 11 page(s)
Try to recover the money you are owned as soon as possible before The Crash.
Put your proceeds in Treasury Bills you will buy at TreasuryDirect!
Don't leave your money with a bank or a broker they will go broke.
Buy the bills at the Market price even if it is at a premium (negative interest rates).
It is better to pay for safekeeping your money rather than having it under a mattress and being robbed.
Don't buy gold, silver or any precious metal.
From the Friday 18tn, 2009 at 4:11 PM EST, stop to work you won't be paid for it: your debtor will become insolvent.
You can work if you need it to eat but ask to be paid upfront.
The Intrepid Strategy:
Apart from implementing the Prudent strategy you can play the intrepid strategy.
The strategy involves portfolios of Minerals, Bonds and Stocks.
However Alan Greenspan gives you a clear and stern warning:
"That is mission impossible. Indeed, the international financial community
has made numerous efforts in recent years to establish such oversight,
but none prevented or ameliorated the crisis that began last summer.
Much as we might wish otherwise, policy makers cannot reliably anticipate financial or
economic shocks or the consequences of economic imbalances.
Financial crises are characterized by discontinuous breaks in market pricing the timing of which
by definition must be unanticipated - if people see them coming, then the markets arbitrage them away.
The clear evidence of underpricing of risk did not prod
private sector risk management to tighten the reins.
In retrospect, it appears that the most market-savvy managers, although conscious that they were
taking extraordinary risks, succumbed to the concern that unless they continued to "get up and dance",
as ex-Citigroup CEO Chuck Prince memorably put it, they would irretrievably lose market share.
Instead, they gambled that they could keep adding to their risky positions and
still sell them out before the deluge. Most were wrong."
Alan Greenspan
The Age of Turbulence.
The use of the word deluge by Alan Greenspan is a clear reference to the Liquidity Trap.
And / Or a reference to that famous quote of that other famous economist:
Take action -- click here to contact your local newspaper or congress people:
What If you Called 411 and The Crash Answered?
Click here to see the most recent messages sent to congressional reps and local newspapers
blog.yield-curve.net
Shalom P. Hamou
Tel Aviv, Ramat Aviv, Israel
I am the youngest economist at My Yield Curve.
Since spring of 1994 I have been working on economic depressions.
I am writing The Tract The Religious Interpretation of (more...)
The views expressed in this article are the sole responsibility of the author
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