It seems the buzz around the media these days is the “R” word. Recession.
Are you freaked out by all of this talk? You should be. You should be paying close attention to what is happening with our policy makers.
Most recently, most of our own congressional policy makers voted (with your tax money) to bail out the credit crisis. Bad move congressional people. Especially any congressional person who has a lick of education in the history arena. You see, back in the 1930’s (aka The Great Depression) was period of time that lasted the better part of a decade. Why did it last so long you might ask? Because we tried an experiment in BAILING OUT our bad choices. What did we do? Simply put, we printed more money which (also simply put) devalued our dollar. Eventually we came out of it due to the policy makers making smarter fiscal decisions.
This begs the question. Why are we repeating this historical mistake? My own take is because this decision was politically convenient. The last thing a politician running for office wants to tell you is “sorry, things are going to be rough for the next couple of years”. Instead they want to buy some time to get elected by telling you they voted for the bail out because they believe it will work and make it less painful for all of us. HOGWASH! They are only prolonging the pain!
One of my financial guru’s (I have a few) is Peter Schiff. I started trading stocks back in the late 90’s and have been following Schiff ever since. His instinct is spot on and if you have never heard of him before, you should pay attention to what he is saying.
I suggest the following links to get you started:
This video link is to Ron Paul who does the “in a nutshell” version of why the dollar will be punished.
Then google Schiff and read what he’s been telling us for a few years. “I Told You So”.