Quote:
Originally Posted by Boston-Sean
I'm currently reading "When Money Dies" which details what happened to Germany a hundred years ago with Hyperinflation. (Don't worry, that could *Never* happen to us. It's different this time)
It's kind of a tough read but one takeaway is that in times when the price of things skyrocket, it's best to own things. Real Estate, stocks, farms, etc. And brush up on your back yard gardening skills.
Renters living paycheck to paycheck get crushed.
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Give the Aftershock Investor by Wiedemer and Spitzer a read. Their predictions of multiple bubbles simultaneously bursting is overdue, but all the ingredients are in place for it to eventually happen, and when it does it will be ugly.
Investors have a way of ignoring the bad and being overly optimistic, and the government is notorious for kicking the can down the road, causing bubbles to grow to the point where when they finally burst, carnage reigns. Remember the housing bubble crash in 2007 - 2008. Anyone watching closely knew it was going to happen a couple years in advance, but everyone kept piling on because so much easy money was being made. I shorted anything closely related to the housing bubble starting in late 2006, including Bear Sterns, Lehman, the rating agencies, and the companies that insured bonds backed by pools of non-conforming mortgage loans. I got real nervous having to cover my shorts for almost a year, but when the $hit finally hit the fan my retirement was all set.
The bubbles in place today make the housing bubble look like it was minor. Stay tuned.