Investment Question From A Dear Friend

Common Sense Commentary: The following is my answer to an old friend who asked my advice on an investment question. I do not give investment advice, but here is my answer to a very close friend:

The equity stock markets of the whole world, especially in the U.S., are in such a state that giving investment advice, even good advice, doesn't work anymore. When the market crashes, so many investors have bought on margin that they have to sell their best investments to keep from losing everything. That results in even the best investments falling with all the rest.

There is so much "rotten wood" theory in the foundations of our national institutions today that evil methods are acceptable and good methods are rejected. We see it on Wall Street, in the Federal Reserve System, in Congress, the White House, in Gov. Regulation agencies and even in Churches. The majority of National Leadership, in our nation today, fits the description in Isaiah 5:20, "Woe unto them that call evil good, and good evil; that put darkness for light, and light for darkness; that put bitter for sweet, and sweet for bitter!" This type of perverted thinking and manner of operation has finally resulted in bringing the whole, corrupt, market system into dysfunction. It reminds me of two drunk, political Pilots .... flying an overloaded 747 ... through a hurricane over the Atlantic ... at midnight ... and they have neglected to fuel up in Miami. They can't fly it, their two political party leaders can't fly it and I can't fly it. I'm just a motion sick, unwilling, passenger who paid to take the trip and has a barf bag in my fingers.

The frightening thing is that our country still has two more "bubbles" ready to burst ...Bonds and currency.
When those two blow ... look our below ... so we have nowhere to go. Well, almost nowhere. My advice is to PRAY a lot, PLAN for hyper-inflation, PAY for no advice, and PUT your investment money in something that will never be worth zero. And, that doesn't mean cash money or money markets either. You see, the Fed is printing so much new currency that hyper inflation, like a Tsunami, rushes out just before it rushes back in to drown everybody in cash that won't buy a cheap wiener.

The bottom line is, our politicians, Wall Street, and the Federal Reserve System have all devolved into the obis by departing from proven, good, business practices, into financial fantasy land. Even worse than that, the American people have embraced this "credit, credit, credit card religion" which shuns, as heresy, old fashioned common sense, frugality, next egg savers, live within your means, and the U.S. Constitution. Their god is themselves. They pray to the mirror. Their bible is the Liberal Socialist Manifesto. Their salvation,
"I-me-my-mine Freestuff" which they pay for with "I-me-my-mine Freedom", is Heaven on earth and will last forever and ever and ever.

If your question is, "what would old Rayburn do" ... I am resting in Jesus and "Riding A Bull Called Precious". Reread my blog of that title dated August,17, 2010.

Pass it on. RB