Reply #20: Very good advice [View All]

[KharmaTrain]

Many saw this mess coming...the debt crunch didn't just happen overnight. We're almost seeing a replay of the 70's where the defecits run up in Vietnam and the rising price of oil fueled the inflation and drove interest rates up. While that sounds bad, it also can be very good.

Your advice on getting out of debt is crucial...as I suspect we'll see interest rates rise as attempts are to keep the money supply tight...and with it will come higher yielding bonds and other investments...and through them the market will rebound. I could see CDs and other bonds going up to 8% or more in the near future...so that advice is very solid as well.

The "smart money" long ago untied itself to as much of the dollar as it could and has been betting on the Euro. The concern isn't as much about what happens on Wall Street as much as it does on the foreign markets. They've been hedging on the dollar to continue to fall and this may not be such a bad gamble.

Cheers...