"Crash Proof" by Peter D. Schiff - Discussion Thread

[Hal3]

http://www.audible.com/adbl/site/pro...seBVCookie=Yes

Remember Ravi Batra, The Great Depression of 1990 (Simon and Schuster, New York, 1985)?

It was a best seller at the time.

It wasn't that bad, was it?

So, is it different this time?

Seriously, if you hope to retire or are retired and you find yourself stuck with investments denominated in "New Dollars" bearing the words "In Bernanke We Trust" that buy 10% of what an "Old Dollar" will buy - how is that going to work for you?

Have you read the book?

Has it changed how you invest?

[Spanky]

This seems to be another "Gloom and Doom" book - U.S. will enter hyperinflation/stagflation soon.

His recommendations:
Reduce consumptions -- agreed.
Save more - agreed.
Invest in precious metals -- may be 10% or less as part of a diversified portfolio.
Invest in foreign currency -- this assumes that the U.S. dollars will continue to plummet?
Invest in foreign high dividends stocks -- this assumes that the foreign markets will grow despite the collapse of the U.S. economy?

[unclemick]

Quote:

Originally Posted by Spanky This seems to be another "Gloom and Doom" book - U.S. will enter hyperinflation/stagflation soon. His recommendations: Reduce consumptions -- agreed. Save more - agreed. Invest in precious metals -- may be 10% or less as part of a diversified portfolio. Invest in foreign currency -- this assumes that the U.S. dollars will continue to plummet? Invest in foreign high dividends stocks -- this assumes that the foreign markets will grow despite the collapse of the U.S. economy?

I did all that bull crap in the 70's and 80's - it was expensive and painful.

This time it's different?? Your turn. .

This time I shall remain a Boglehead - stay the course, policy portfolio, current yield or 4/5%, etc. Sorta like the last 14 years of ER.

heh heh heh - Target Retirement plus a few Norwegian widow stocks - although I really think foriegn/gold is going to tank this time around.

[Notmuchlonger]

Beats me. 2 weeks ago oil was going to 200 and over a month ago gold was the perfect metal..Doesn't take long for things to change.

[unclemick]

Quote:

Originally Posted by unclemick I did all that bull crap in the 70's and 80's - it was expensive and painful.

Except one - I remember with fondness:

heh heh heh heh heh heh heh heh :

Pssst -Wellesley!

heh heh heh -

[WilliamG]

Quote:

Originally Posted by unclemick Except one - I remember with fondness: heh heh heh heh heh heh heh heh : Pssst -Wellesley! heh heh heh -

Pssst - unclemick, how come you're not back in Wellesley with part of your Target money?

[NW-Bound]

Quote:

Originally Posted by Hal3 Remember Ravi Batra, The Great Depression of 1990 (Simon and Schuster, New York, 1985)? It was a best seller at the time. It wasn't that bad, was it? So, is it different this time?

Some of my friends read the above book, cashed out their 401k then, took big tax hits and used what was left to buy gold at $500. Then, 10 years later when gold dropped to the $300, they sold gold to buy stocks!

Note that there was no way back then to roll-out 401k to IRA, then to buy a gold ETF. You got to buy physical gold, meaning Krugerand or Canadian Maple gold pieces, with hard cash.

I read Ravi Batra, got scared too, but did not do any such thing because I was a bit skeptical, and was too busy with my work. Lucky me! I did not miss out on the big bull run of the 90s.

Quote:

Originally Posted by unclemick I did all that bull crap in the 70's and 80's - it was expensive and painful. This time it's different?? Your turn. .

Appararently you recoveved very well. My friends did not.

[growing_older]

I think Howard Ruff also re-issued his "Doom and Gloom" book How to Prosper in the Coming Bad Years. I guess there's money to be made in such a message, and it didn't take much updating to make it fit the "this time it's the same again" scenario.

[cute fuzzy bunny]

Yep, oil and gold are dropping, the dollar is rising, and a good many foreign economies are belatedly catching the malaise that we might just be shaking off.

So you might be jumping from the frying pan thats starting to cool and right into the fire...

[ejman]

Yes, I wasted the whole startup of the recovery 1982-1987 having purchased nothing but gold and silver back in 1980 waiting for the world to end. I finally decided to buy mutual funds in January of 1987 - Just in time for the 87 crash. I was so scared that I did nothing and then noticed at the end of 87 that that my mutual funds were actually OK (Yes including pssst Wellesley) as if the crash had not happened. Gold and silver however were still in the toilet and remained there for another 15 years. Its barely back now to what I bough it for 28 years ago. Hell of an investment! And people say gold is an inflation hedge -ya right!

[cute fuzzy bunny]

Sure is working great right now. Inflation is spiraling upwards while gold is dropping like a rock.

[UncleHoney]

Has there ever been a time in recent history where precious metals had a portfolio value other than speculation?

Seems to me the run to gold is always followed by the run from gold with the appropriate losses for the slow learners.

[Notmuchlonger]

I haven't seen many of those buy gold ads lately. You know the one..THE DOLLAR IS GOING LOWER BUY GOLD SAVE YOUR SOUL!!

[UncleHoney]

I remember back in the 70's when gold started to climb above $35/oz. I thought I had to have some but couldn't find any locally so I forgot about it. Every time the price shoots up I get a chuckle thinking about it.

I do have some gold coins from the late 1800's that were with some coins my dad had. Neat to look at but if I sold them then I wouldn't have any gold coins.

Speaking of coins, anyone need proof sets? I got plenty. My dad collected proof sets for a hobby. Most are worth about what he paid for them.

[Hal3]

It looks like someone is making a run on the banks.

This is federal reserve data:

Image:Net Reserves 1990 2008.png - Wikipedia, the free encyclopedia


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