Retirement in the Toilet
The Federal Reserve is setting up the investing public for slaughter. By artificially keeping interest rates at 0% the Fed is driving people out of the safety of savings accounts, CD's, and money market funds into riskier assets. This will end badly.
Legendary investor, Seth Klarman, is sounding an alarm:
The government is now in the business of giving bad advice... By holding interest rates at zero, the government is basically tricking the population into going long on just about every kind of security except cash, at the price of almost certainly not getting an adequate return for the risks they are running. People can't stand earning 0% on their money, so the government is forcing everyone in the investing public to speculate.And it's not easy to figure out what people should do, as Mr. Klarman told the Wall Street Journal:
I asked Mr. Klarman what he would suggest for smaller investors who share his worries.Wall Street Journal: Legendary Investor Is More Worried Than Ever
"All the obvious hedges"—commodities and foreign currencies, for example—"are already extremely expensive," he warned.
Especially gold. "Near its all-time high, it's a very hard moment to recommend gold," said Mr. Klarman...
Seth Klarman Sees Another Lost Decade For Stocks, "Artificial" Market Reminds Him Of A "Hostess Twinkie"
Thai officials use a powerful visual to explain violence -- After regaining control of the Thai capital by force of arms, the military and government mobilized Saturday for a new battle that will help decide the outcome of the most tumultuous political struggle in Thailand's modern era...
B.C. filmmaker injured in Thailand protests awake after brain surgery -- Victoria filmmaker Chandler Vandergrift, who was seriously injured during the violent protests in Thailand this week, squeezed his doctor’s hand after making it through brain surgery, a friend and co-worker said late Thursday...
The black hole at the bottom of the Gulf -- Some 33 days, nearly a billion dollars of expenditure, and umpteen official statements after the Deepwater Horizon oil rig blew up in the Gulf of Mexico – and the world is still none the wiser about how many millions of gallons of oil are leaking into the ocean every day, how much has already been discharged into the sea, and – more to the point – how this, maybe the world's worst oil disaster, can be stopped.
New BP statement further clouds spill size estimates -- BP backed off of its statement that it had begun siphoning 5,000 barrels of oil a day from a leaking well on the Gulf of Mexico seabed, throwing into further confusion efforts to estimate how much crude is flowing...
BP May Owe U.S. $1 Million a Day in Royalties on Spilled Oil
Lessons from the Gulf oil spill
For travelers, an Icelandic pain in the ash -- Figuring out whether travel insurance covers your canceled trip can be as hard to fathom as the pronunciation of the volcano causing all the trouble (Eyjafjallajokull)...
British travellers face 'ash tax'