Monday, April 6, 2009

As Deflation Rages...

...islands of wealth will emerge as the water level falls. Short them. Nothing is safe.


  1. FDR, can you identify these islands?

  2. Banks that pass TiGe's stress test, still to be shorted?

  3. At this point, you can safely (but with very high systemic risk) short anything that hasn't been routed. Preferably stocks with a high multiple (higher than 10 for now, or higher than 5 in the coming years). The specific business/commodity isn't that important, because the trouble is a loss of currency and the overall business environment.

    Timing is important only if you want instant gratification - less than a one year outlook or so.

    Short silver/gold is a good place to be in the near term, clearly an island.

  4. I see where you are going with this. The tide will make the drought look mild.

    Buy a depth finder to avoid sand bars

  5. FDR. Can you give us a sign, oh FDR?

    He has, he has given us a shoe. Let us follow this shoe, and then wait for the other one to drop.

    He is the Messiah. I should know, I followed a few.


The USA's political-economc system is best described as:

On Nov 2, 2010, I plan to vote (FOR or AGAINST) my incumbent congressman

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