David Stockman got taken to the woodshed for truth-telling about the horrors of Reaganomics, but took his beating and kept telling the truth. He today quotes -
OK... so say you are sitting pretty on your 401K, IRA, whatever. And have a good job. But then the equities market busts.
1. Your 401k or retirement plan takes a 50-60% hit.
2. You lose you false-economy job.
3. Housing prices drop and you are upside down.
We cannot have economic recovery without the bubble bursting, so the above three are absolutely necessary. And if and when it occurs, it is likely you are well connected in a false-economy industry, and rather unemployable. Look at what happened in 2008. Next time it will be, what, now? Eight times worse?
Start a company. Anything. You don't need money, you need customers. Take what time you've got left to get going. Read the article by Stockman, puts much in perspective.
Feel free to forward this by email to three of your friends.
...Seth Klarman. The latter is proprietor of the $27 billion Baupost Fund and can fairly be described as one of the greatest hedge fund managers ever. He is also so eminently sensible that he recently returned several billions to his investors—owing to a dearth of reasonable investment opportunities.Stockman goes on to talk about the coming bust.
OK... so say you are sitting pretty on your 401K, IRA, whatever. And have a good job. But then the equities market busts.
1. Your 401k or retirement plan takes a 50-60% hit.
2. You lose you false-economy job.
3. Housing prices drop and you are upside down.
We cannot have economic recovery without the bubble bursting, so the above three are absolutely necessary. And if and when it occurs, it is likely you are well connected in a false-economy industry, and rather unemployable. Look at what happened in 2008. Next time it will be, what, now? Eight times worse?
Start a company. Anything. You don't need money, you need customers. Take what time you've got left to get going. Read the article by Stockman, puts much in perspective.
Feel free to forward this by email to three of your friends.
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