Monday, September 22, 2008

Summary of a Crisis

Very good read on the current financial mess. Yes, it's on Kos, but it's the best I've read so far.

And another on the potential cost of doing nothing.


Anonymous said...

I do not like looking at the doom and gloom scenario too closely. It reveals just how unprepared I am for it. Most importantly, how unprepared my kids will be for it. Two years ago I made a move that has paid dividends... but if I can't touch it... what good was it?

Should this be a question of how much gold I have stored in a foundation safe?

Although the two articles outline just how the situation has gone critical, it does not underscore who has the best plan to fix it. The fact that I need to rely on someone's plan is a problem for me. To let this simply "shake itself out" is just as troublesome as having to listen to a bunch of people in power (and money) roll the dice. Right now... I'd take 6,8 and the pass line. To be honest, I have zero confidence on a successful remedy in the next 7 years. By then... someone else will be selling a new flavor of Kool-Aid to take effect for another 8 years.

PassTheChips said...

7:6 odds on the Place Bet with 10 out of 36 combinations going my way. 27% chance of hitting. Probably too optimistic at this point.

Let's improve the odds to 6:5 by making an Odds Bet instead. Still, that 27% hit rate. Ouch.

Forget cash. Gold, oil, and food.

Anonymous said...

I'd change the order; Food, Gold, Oil. People have to eat even if we move to energy independence. My 401k is up this year because I got out of all US markets that weren't food related.

PassTheChips said...

That's impressive. You must have some sweet international options (my international funds are down 15%), as well as mutual funds/ETFs that are pretty specialized.