Sold my house a year ago and went all cash out of the market last Oct. CD’s dont make much return, but I cant think of anything that’s not loaded with risk. Everything seems way too volitile since last Nov.
I was really worried about inflation since I’m holding a bunch of USD’s. But it seems to be turning into a deflationary situation for anything that’s not a commodity. Sure Oil and food are rising in price, but credit is contracting big time and unemployment is rising fast as well. The Fed has created a lot of liguidity, but I dont see how that helps when there’s really no solvency out there.
I’m now thinking that the govt is going to step in soon and start spending like never before, because the people and the private sector are not spending.They’ve made money available, but it’s not being taken, so they have to take the ball and start running with it. If history repeats itself or at least rhymes, we should more military conflict and WPA like projects.
