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Remember what I was tellin U Boyz about a CRISIS OF LIQUIDITY back after 911. An how close we came...Well now we have stepped up to the abyss again....this time it is not just a single event driven phenomena. This a sytematic driven event...so many things going wrong all at once. Yet each piece of the puzzle effects the others in a Catch 22 situation.

The Fed pulled the financail system back from the brink with the Bear Sterns/Morgan save...

However as time goes by the unwinding continues...Fanny/freddy, WAMU, Citi, Wachovia...all on shaky ground and not likely to survive in their current configuration.

The more time that elapes the better....the softer the blow.


Back after 911, I looked into my crystal ball and thought I had a window of opportunity to sell my hard assets and go to liquidity. After that I thught the bottom would drop out. I was quite surprised that those assets continued to appreciate and the market became very bullish for them. I have continued to look for weakness in that market. Some segments have become weak, but others are still strong if not very strong. U boyz know the one I am talking about.

What I am worried about now is the bottom dropping out on those assets. I am thinking that my crystal ball gazing back in 2001 was correct but the length of time it would take was off. We shall see.

What I am thinking now and betting is that the world is in an inflationary spiral, the American $$$ has been in decline (Undrstatment of the year) and that hard assets will reflect the declining value of the $$$ and skyrocket.

Something has to be worth something. Money has to be put to work by being invested in something. Today RE, Stock Market, Bond Market are all negative investments..Commoditys are king and are the Bull. However prices have become lofty, and fraught with speculation.

Money to be invested is in a box, with no clear path to earn a return. So what do you do? The only thing one can do is take your choich of investment vehicle and bet on it. As an act of faith.

U can be sure of one thing that if the USA goes then the world will follow right down the drain with it. Everybody will be in a leaky boat without a paddle on ***** creek.

For those who say NAY...to the world following suit...yeah but look at all those $$$$$$ they hold and are in $$$$ denominated investments. Along withthe USA being the reserve currency and the US consumer buying a large percentage of the goods and services produced in the world....Nope we go they go...and unless you have mega, mega-bux join the crew....