Dean Cain Posted February 19, 2013 Share Posted February 19, 2013 Good insights from Harry Dent Jr. former Bain & Company adviser and investment manager. Dent developed a theory of generational booms & busts and has applied this to a macro economic model he uses to develop investment strategies. Why the hell wasn't Romney not advocating Dent Jr's policies? Give the video 5 minutes, and the whole 54 minutes if you have time. Key points: The best investment: invest in t-bills & cd's in short term next 2-3 years Don't put money in big banks: put money in community banks, and safe investment accounts banks can't lend against Short commodities; gold, silver, oil, municipal bonds The bond market is more powerful than Federal Reserve, Greece govt borrowing rates went from 4% to 30% overnight The government is inflating (QE) to stop deflation as private sector delever's debt As debt is delevered people need to sell assets, and they do this not in commodities but in cash Boom's debase the dollar, federal reserve printing mearly is providing liquidity to allow bad debt to be sold We are going to crash, it's not going to be inflation it's going to be deflation In 2008 we had 57 trillion in private & government debt: 42 trillion private debt, 10 trillion federal, 2 trillion local govt, 3 trillion state govt It is the 42 trillion in private debt that is decelerating due to baby boomers exiting workforce This 42 trillion is likely to deleverage down to 20 trillion, thus resulting in elimination of 22 trillion over the next 10-20 years. Over the next 10 years the Government will inflate 10 trillion, which won't stop 22 trillion of private sector deleveraging Have government write down debt: only let the best financially healthy banks stay alive unlike 1930s & 1870s economic crisis the Federal Reserve is not allowing debt default's mainly of overleveraged banks in 2000 beginning average U.S. household could borrow 3.3 times their income, by top of bubble 2006 9.6 times their income betweem 2000 & 2008 U.S. private debt went from 20 trillion to 42 trillion government debt went from 5 to 10 trillion, will go to 22 trillion in next 10 years http://www.youtube.com/watch?NR=1&v=xzqsdpgRRgE&feature=endscreen Link to comment Share on other sites More sharing options...
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