Where to put my money if things get ugly in the United States

[novaman]

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

[Major Tom]

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.

[Animorph]

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.

[calmloki]

Food, shelter, protection. That said, if the world goes kerschitt a solid connection with your deity of choice is said to be a comfort.

[frayne]

Our politicians aren't stupid enough to let the country default.

[Major Tom]

Quote:

Originally Posted by frayne 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.

[M Paquette]

Quote:

Originally Posted by novaman 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."

[REWahoo]

Quote:

Originally Posted by novaman 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...

‪Martha Reeves and the Vandellas- Nowhere to Run‬‏ - YouTube

[73ss454]

Hmm REW, I didn't know you liked that stuff. Isn't it a little old for you?

[REWahoo]

Yes, long before my time...but it makes my point.

[GaryInCO]

Quote:

Originally Posted by frayne 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.

[2B]

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.

[bssc]

Quote:

Originally Posted by M Paquette 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.

[homestead]

I had a friend that lived in Hungary during hyperinflation.
He said they used razor blades as money since they held their value.

[IBWino]

Quote:

Originally Posted by Animorph 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.

[W2R]

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.

[Ronstar]

Quote:

Originally Posted by frayne Our politicians aren't stupid enough to let the country default.

You may be right, but finance and economics are not their strong points.

[novaman]

Quote:

Originally Posted by IBWino 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.

[frayne]

Quote:

Originally Posted by Ronstar 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.

[IBWino]

Quote:

Originally Posted by novaman 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.