| Bill Gross Accepts Jesus. Bond King Embraces Debt-for-Equity. http://www.thenewmortgagecompany.com/articles/gross-revulsion.pdf | ||
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We live in the aftermath, says Bill Gross, of a "pyramid scheme” (2/08) and a “chain letter” (2/08) and a “Ponzi” (1/09). It’s a littered landscape in financial “collapse because there is no more credit to feed” (1/08) the “charade”. (1/09) Mr. Gross may be the most successful manager of debt investments in the world. Right now our financial crisis centers on the value of debt. Studying his thoughts on bonds, the common name for debt investments, is comparable to reviewing Warren Buffet’s work on stocks. It’s a good idea if you believe in studying the best. He describes the United States economy as "an asset-based economy” which supported “Ponzi-style prosperity." (7/08) Inflated prices of all assets are now falling. Houses, for example, “quite simply … (please click here to read the story). |  |
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"The kid's got it."
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How Should You Invest Your Savings?
In a typical bank crisis property values fall for five years. My opinion is that we are in a bank crisis. If correct, then we are now three years into a five-year property deflation (a fall in home values). The all-clear is summer 2011 if history is our guide. Stocks and bonds will likely be brought down further by the continued fall in property values. If you have any choice about how to hold your savings, hold cash. That means sell stocks, bonds and real estate. If you are moving and you have a choice, chose to rent and not to buy real estate. It’s smart to prepare for the worst economic times of your life. If the terrible doesn't happen, you will not be too badly hurt holding cash; at least compared to losses you might suffer if the terrible happens, and you are still holding stocks and bonds. If you keep your home, you will likely see it fall in value 20% or 30% from where it is today. If you can live with that, and you put your money in cash, then you can forget about the financial crisis and go about your business.
Plan Orange: Simple & Smart
The Most Ambitious Plan to End the Financial Crisis -- By Far
Crisis Solved: Introducing Plan Orange for Mortgages Killing Catastrophe: Arguments For and Against Plan Orange for Mortgages Bankrupting Leverage: Plan Orange for Money-Center Banks Bill Gross Accepts Jesus: Plan Orange & Systemic Debt-to-Equity Conversion Plan Orange for Mortgages (chart)
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