"President-elect Barack Obama said Friday it was a high priority to work on policies to help the stricken US auto industry adjust to the economic crisis." Ah yes, and a federal infusion of cash into GM and Ford keeps union wages high. I'm trying to remember, which party does the UAW strongly support?
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The Saudis and Chinese have stopped buying our credit card company bonds. That's the source of cash that allows credit card companies to keep lending. I fear this might be the first step of the rest of the world catching on that the U.S. might not be the best place to sink their money. It's foreign investment in our T-bills and other cash-based investments that props up our dollar. If that foreign investment stops, we're in (even bigger) trouble.
I think Obama will make things worse, but he has one major asset that could help: foreigners like him and they hated Bush. He might be charismatic enough to convince the Saudis to keep buying our junky bonds.
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If you can't tell from this post, I've been absorbing all things financial/economic lately. My interest in such things started in my early teen years. I talked with my Dad about investing, subscribed to Barron's and read it faithfully though I didn't understand half of it, read some Hayek, had a phone broker that let me buy stock over the phone (my Dad would then send the check). In my later teen years, other things--first beer, then grades, then finding a job, then trying to establish my practice--took priority.
Now I'm back in . . . and rather enjoying it. A sixth sense over the past three years has told me to make all sorts of good investments moves that have preserved my family from the worst of the market downturn. I've been scraped up, but I'm not bleeding. I'm not trying to brag, and I'm not even trying to establish my credentials as an investment adviser (trust me, I know very little . . . my "sixth sense" is really "a vague hunch and fear"), but if you want some advice, check out the folks at Euro Pac. I think they have the best advice going right now.
The firm's president, Peter Schiff, is known as "Dr. Doom." He has some very harsh and scary things to say about the economy and politicians. He also has some novel investment advice, much of which has brutally bruised his clients over the past twelve months, but I think his overall framework for investing--which is based on the Austrian School of economics--is far more sound than the babble I hear in the mainstream investment press. I also highly recommend his Bull Moves in a Bear Market, which came out last month.
I'd love to read comments about Peter Schiff and Euro Pac: Questions, criticism, or praise. It's all welcome. I will check it and respond. Just remember: I'm no expert. Consider me a new hobbyist in a very old and complicated field, then discount any advice I give accordingly.
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Has my right margin problem cleared up? My IT guy said he'd look into it, but I received another email from a TDE reader yesterday, telling me it persists. Please let me know, via email or comment box. Thanks.
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Holiday shopping is coming up. Please use my Amazon link (box) on the right to access Amazon. If you do, I'll receive a percentage of every purchase. It doesn't add up to much, but it's nice to receive something for the thousands of words I post here every month.
