Economic Problems
Dec. 23rd, 2023 03:39 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
ndrosenMy broker (who handles the wealth which I inherited after my parents’ deaths) called me Friday afternoon to say that stocks and other assets seemed overvalued, so he proposed to roll the Treasury bills which had just matured into more T bills. I agreed to that, and I gave my perspective on assets, especially land, being overvalued; I reminded him of Dr. Fred Foldvary having predicted the great recessions of 2008 and 2026 back in 1997. Based on the real estate cycle, it appears that we will face the bursting of another land price bubble in a couple of years.
He also spoke of the huge federal deficit, and I agreed that it was a problem, and that the government was likely at some point to either default explicitly, or pay off the debt in inflated currency. We chewed the fat about these and related matters for a few minutes.
I am planning to move another slice of my federal Thrift Savings Plan money from stocks to bonds in advance of the crash. You may want to do similarly, or to try to make other provisions to weather the storm.
He also spoke of the huge federal deficit, and I agreed that it was a problem, and that the government was likely at some point to either default explicitly, or pay off the debt in inflated currency. We chewed the fat about these and related matters for a few minutes.
I am planning to move another slice of my federal Thrift Savings Plan money from stocks to bonds in advance of the crash. You may want to do similarly, or to try to make other provisions to weather the storm.
