Britannia Radio

America the Bankrupt.

Michael David White. 563 words. Three minutes to read.   Every loan officer knows the story begins with debt and income. Debt and income define the financial health of a borrower. Is it any different for a country? If yes, then what do you use to determine the financial health of a country? One method I suggest is a shaman. Mine uses a divining rod. He stands himself inside a circle of cow chips ....  (Please click here to read the story)        Equity Goes to Hell

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.