This is Your Future … Bailing out Walls Street’s Donkey

Most people remember - or have heard about - the old commercial, “This is your brain” (holds up an egg).  “this is your brain on drugs (shows the egg frying in a pan).

The commentator then asks, “Any questions?”

This is analogous to what King Henry (Paulson) and Big Ben Bernanke are doing to your future, and more specifically, the future of your kids, your grandkids, etc.  This bailout plan - or whatever they call it - is so much more of the wrong thing.

• They tell us it’s necessary (they are scared to death by the way … they have to say something).
• They tell us it’s about Main Street, not Wall Street (notice how the proposal showed up before the house of Financial Banking Cards got to Goldman Sachs, Treasury Secretary Paulson’s old company).
• They tell us it’s better than the alternatives (which they dont understand .. nor propose).
• They tell us they have to act quickly (because Congress was going on vacation this Friday.  Besides, if they take too long, the American people may actually scrutinize what they are doing and push back)

We should be livid about this.  The powers that are being requested by Paulson and Company are unprecedented (also including apparently, immunity from any kind of prosecution in the future).  We all need to pay close attention to the creeping trend towards socialism that is stalking the halls of our government.

We all need to be thinking about what we are going to do with our assets when they start making these ideas law.  There is great opportunity in chaos; taking advantage of change is one of the fundamentals of innovation.  That said, my personal strategy right now is:

• Buy precious metals.
• Buy bear market funds.
• Stay light (be in cash not stocks, preferably not US Dollars).

That, and I’m getting back into real estate investing.  More on that later.

Be afraid, be very afraid.

Any questions?