Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Where to put my money if things get ugly in the United States
Old 07-15-2011, 03:35 PM   #1
Recycles dryer sheets
 
Join Date: May 2007
Posts: 371
Where to put my money if things get ugly in the United States

I'm reposting this link from another thread, but supposing the worst happens and the US defaults, where should I be putting my money??

US default: Doomsday for investors - 1 - politics & debt limit - MSN Money
__________________

__________________
novaman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-15-2011, 03:46 PM   #2
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,128
If you really think that our leaders will allow us to default, then I guess under the mattress is as good as any place.

Or in a cookie jar under the floorboards.

As vehemently as each side is opposed to the other side's suggestions, I'm betting that they'll find some way to see beyond that and act to prevent default.
I hope they do it very soon though.
__________________

__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is online now   Reply With Quote
Old 07-15-2011, 03:52 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
I'm nowhere near that worried. Given a credit-crunch possibility once again, I might make sure I have access to cash through several different sources, including a little extra at home. I'll let the rest sort itself out in time. If I wanted to go all market-timey I'd go with emerging market bonds and stocks with major exposure to emerging economies, though with everything so global, FDIC insured cash might be best for now.
__________________
Animorph is offline   Reply With Quote
Old 07-15-2011, 03:53 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
Food, shelter, protection. That said, if the world goes kerschitt a solid connection with your deity of choice is said to be a comfort.
__________________
calmloki is offline   Reply With Quote
Old 07-15-2011, 03:57 PM   #5
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,528
Our politicians aren't stupid enough to let the country default.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 07-15-2011, 04:02 PM   #6
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,128
Quote:
Originally Posted by frayne View Post
Our politicians aren't stupid enough to let the country default.
I think the extremists at both ends possibly are, so I hope we never get into a situation where they control the show.
__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is online now   Reply With Quote
Old 07-15-2011, 04:06 PM   #7
Moderator Emeritus
 
Join Date: Oct 2007
Posts: 4,929
Quote:
Originally Posted by novaman View Post
I'm reposting this link from another thread, but supposing the worst happens and the US defaults, where should I be putting my money??

US default: Doomsday for investors - 1 - politics & debt limit - MSN Money
Well, the worst? When one blows up the world's de-facto reserve currency, there are not a lot of places to hide. The 'rapid revaluation' process doesn't treat anything nicely. Not even genuine gold (plated tungsten) ingots...

Of course, pine cones, acorns, chestnuts, oval rocks and the Triganic Pu can be used at the appropriate daily rate of exchange.

From The Hitchhiker's Guide to the Galaxy "...the Triganic Pu has its own very special problems. Its exchange rate of eight Ningis to one Pu is simple enough, but since Ningi is a triangular rubber coin six thousand eight hundred miles along each side, no one has ever collected enough to own one Pu."
__________________
M Paquette is offline   Reply With Quote
Old 07-15-2011, 04:09 PM   #8
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,070
Quote:
Originally Posted by novaman View Post
I'm reposting this link from another thread, but supposing the worst happens and the US defaults, where should I be putting my money??
Also reposting from another thread...

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 07-15-2011, 04:20 PM   #9
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Hmm REW, I didn't know you liked that stuff. Isn't it a little old for you?
__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Old 07-15-2011, 04:22 PM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,070
Yes, long before my time...but it makes my point.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 07-15-2011, 04:53 PM   #11
Recycles dryer sheets
 
Join Date: Jun 2011
Posts: 76
Quote:
Originally Posted by frayne View Post
Our politicians aren't stupid enough to let the country default.
You have more faith in our politicians than I do.

And more than the ratings agencies have, since they already have plans in place to dramatically lower the US's credit rating if we default -- and they will probably lower it (less) even if we don't.
__________________
GaryInCO is offline   Reply With Quote
Old 07-15-2011, 05:03 PM   #12
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
I don't think it will make a big difference if we don't raise the debt limit for a few weeks. I believe it's mostly bi-partisan posturing.

If things really were to go bad, it's back to Y2K planning. MREs, guns and ammunition will be the currency of choice.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 07-15-2011, 05:38 PM   #13
Moderator
bssc's Avatar
 
Join Date: Dec 2005
Posts: 9,923
Quote:
Originally Posted by M Paquette View Post
Of course, pine cones, acorns, chestnuts, oval rocks and the Triganic Pu can be used at the appropriate daily rate of exchange.

From The Hitchhiker's Guide to the Galaxy "...the Triganic Pu has its own very special problems. Its exchange rate of eight Ningis to one Pu is simple enough, but since Ningi is a triangular rubber coin six thousand eight hundred miles along each side, no one has ever collected enough to own one Pu."
I can sell you a couple of these, I have them parked in orbit around Neptune.
__________________
Angels danced on the day that you were born.
bssc is offline   Reply With Quote
Old 07-15-2011, 06:02 PM   #14
Recycles dryer sheets
 
Join Date: May 2007
Posts: 309
I had a friend that lived in Hungary during hyperinflation.
He said they used razor blades as money since they held their value.
__________________
homestead is online now   Reply With Quote
Old 07-15-2011, 06:28 PM   #15
Recycles dryer sheets
IBWino's Avatar
 
Join Date: May 2006
Posts: 423
Quote:
Originally Posted by Animorph View Post
I'm nowhere near that worried. Given a credit-crunch possibility once again, I might make sure I have access to cash through several different sources, including a little extra at home. I'll let the rest sort itself out in time. If I wanted to go all market-timey I'd go with emerging market bonds and stocks with major exposure to emerging economies, though with everything so global, FDIC insured cash might be best for now.
If the U.S. defaults, will the FDIC have any funds available to reimburse losses? Seems to me that nothing, including cash, would be truely safe.
__________________
IBWino is offline   Reply With Quote
Old 07-15-2011, 06:43 PM   #16
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,824
OMG, the sky is falling, the sky is falling!

Just kidding. I wouldn't know if it was, or not.

I learned some lessons from the aftermath of Katrina, mostly that in an emergency you can't predict what will happen. Most of the standard hurricane precautions did little good because of the immensity of the disaster, and there were other measures that really helped in unpredictable ways.

So, the best approach when confronted with a possible emergency IMO is to cultivate your adaptability, your mental agility, your ingenuity, and your ability to roll with the punches and come up swinging. I think diversification will help. Keep the gas tank, your wallet, and your pantry full, swing and dodge.

I don't think anything will come of this debt ceiling crisis, except some unpopular legislation will be passed at the last minute ("But we HAD to vote for it to save the country!"). But then I could be wrong - - often I am.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 07-15-2011, 07:05 PM   #17
Moderator
Ronstar's Avatar
 
Join Date: Aug 2007
Location: A little ways southwest of Chicago
Posts: 9,336
Quote:
Originally Posted by frayne View Post
Our politicians aren't stupid enough to let the country default.
You may be right, but finance and economics are not their strong points.
__________________
Ronstar is offline   Reply With Quote
Old 07-15-2011, 07:44 PM   #18
Recycles dryer sheets
 
Join Date: May 2007
Posts: 371
Quote:
Originally Posted by IBWino View Post
If the U.S. defaults, will the FDIC have any funds available to reimburse losses? Seems to me that nothing, including cash, would be truely safe.
Agreed. If you read the article I originally posted a link to, if the US defaults, there will be a rapid repricing of EVERYTHING...and nothing will be safe.
__________________
novaman is offline   Reply With Quote
Old 07-15-2011, 07:56 PM   #19
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,528
Quote:
Originally Posted by Ronstar View Post
You may be right, but finance and economics are not their strong points.

True but getting re-elected is and if the country defaults there would be incumbent blood in the streets come election day.

I think the GOP will ride this thing to the 11th hour and agree to raise the ceiling, and no doubt already have some stop gap measure in their hip pocket even now. Nothing more than gamesmanship, and saber rattling at the expense of worrying old folks, some in the financial sector and the world economic community. Just my two cents though.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 07-15-2011, 08:06 PM   #20
Recycles dryer sheets
IBWino's Avatar
 
Join Date: May 2006
Posts: 423
Quote:
Originally Posted by novaman View Post
Agreed. If you read the article I originally posted a link to, if the US defaults, there will be a rapid repricing of EVERYTHING...and nothing will be safe.
Just read the article, and the author does make that point. I'm going to have a martini now and try not to think about it.
__________________

__________________
IBWino is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Money Market funds in potential danger. clifp FIRE and Money 22 07-06-2011 07:10 AM

 

 
All times are GMT -6. The time now is 11:38 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.