1967:
Mr. McGuire: I just want to say one word to you -just one word.
Ben: Yes sir
Mr. McGuire: Are you listening?
Ben: Yes I am.
Mr. McGuire: 'Plastics.'
2006:
HP: I just want to say two words to all of you - just two words
HP Readers: Yes sir
HP: Are you listening?
HP Readers: Yes we are.
HP: Raise Cash.
May 05, 2006
Just two words: Raise Cash
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6 comments:
Very true. With all markets getting crazy on borrowed money and leverage, there is value in having good old plain cash and no debt. Cash will be in a bull market when life and the real economy asserts itself again.
With all this talk about "assets" and increasing values of this and that (including gold): The only payment for all debts and services and goods still is cash. Always has and always be. If you don't believe it, try paying with a gold coin or a stock certificate.
All the hype about the "value" of real estate is just dumb: One buys and - more importantly - keeps (via mortgage payments etc.) real estate only by having cash.
I'm getting ready for the crash. Could be a one day event again as the ponzi scheme unravels. Could be a long slow march down. But whether it's houses or stocks, there's a time to buy. Buffet knows it, and I think HP readers know it too
Good luck
Jim Puplava
(www.financialsense.com/)
explains stock and commodyties markets escalations as similar to Germany hyperinflation collapse in the mid-20th.
He sad when everything is growing so fast - it feeds itself (positive feedback). I doubt we'll see a RE market collapse nationally, just a dozen "dead-zone" places. What we gonna see - it's just ugly hyperinflation.
We had cash in the aftermath of the 80s Colorado housing crash.
It was like being a kid in a candy store..banks and desperate homeowners all wanted to make any kind of cash deal.
Cash will be king in the RE market in very short order.
I believe the Fed will opt for hyperinflation until the elections. Then they will turn off the printing presses and we'll see 50 point increases. They will hope and pray that the economy will be strong enough by then to stand up to a RE bust. I also believe the RE bust will be mostly along the East and West Coasts and part of the North. I hope those speculators don't flock to the flyover country and destroy those real estate markets too.
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