Comments on Saving to Inve$t: The Beige Book and the State of the Economy

Curt - So what investment options do you suggest? ...

2008-09-04T22:24:00.000-04:00

Curt - So what investment options do you suggest? Commodities/gold have suffered even more than other sectors in the last month. I agree cash is in real terms is a losing proposition but it seems to be the safest (less "losing") asset class at the moment. I think the dollar will stay at current levels due to global weakness, long term trend is still down though. For not though, I think the US is a better place to invest and want to reduce my international exposure in the interim. Overall though I am not sure and am taking on a week to week basis.

SB - Printing presses are running hot, but so is the US dollar now. What you are your thoughts on the commodities/gold given recent falls. Is it a good time to get in?

My question, obviously answered by Curt, is whethe...

2008-09-04T14:02:00.000-04:00

My question, obviously answered by Curt, is whether they shut off the printing presses yet. Apparently the answer is no.

It's a lot worse then you think. The 3.3% GDP grow...

2008-09-04T11:29:00.000-04:00

It's a lot worse then you think. The 3.3% GDP growth that the government reported was based on a 1.1% inflation, even though the CPI was 5.6%. They are fudging the numbers. The GDP is more like a negative 3% and will continue downward for sometime.

Cash is not a safe position, because the fed bailouts are reducing the value of the dollar so fast that the dollar is likely to lose 50-90% of its value.

Today, in the short run, the dollar is going up because of the preception of problems in Europe and China, but the world will soon realize that the problems in the US are much worse then the rest of the world - and the dollar will fall faster then you can get out of it.