Lousy Investment Advice from So-Called Experts

[broadbill]

Originally Posted by thebigr

As far as the high risk loans, not sure what year it was, early 01 or 02 but the SEC changed the rules and allowed the banks to leverage much higher than they use to be allowed to. If they would not have changed those rules our housing crash my never have been so severe.

Its a matter of semantics I guess...

I would call the SEC rule change that allowed higher bank leverage "deregulation" as it allowed banks MORE latitude to make those risky loans. In the complete absence of regulation, those banks would have made those kinds of loans because of the booming housing market.

Its also misregulation because it ultimately wasn't a good idea of the SEC to allow those loans in the first place.

[Majordomo]

Originally Posted by Mike from back east

Schiff told them the financials were toxic and it turns out he was right.

Almost 2 years ago I fired my mother's financial advisor. He laughed when I said she needed to move her money away from the stock market to protect her from a possible recession. A lot of other people thought it was a dumb move too. It was one of the smartest moves she ever made. Her 401k is taking a hit because we decided to let it ride but at least she isn't watching her mutual funds plunge.

Schiff was half right about it all. I read work other economists have done that showed a recession in the U.S. would trigger a recession around the world. Peter thought other markets outside of the U.S. might be safe so he took a pretty big hit along with many of his clients. Schiff wasn't the only economist to predict this severe recession/depression. Other economists around the world predicted how and when this recession would hit but they were laughed at too.

This recession wasn't planned in anyway but many people that saw it coming kept quiet until it was time to cut and run. There are many opportunities to make easy money in a recession, especially this one. I think that may have motivated many people to keep their mouths shut.

[emilybh]

Originally Posted by Majordomo

Almost 2 years ago I fired my mother's financial advisor. He laughed when I said she needed to move her money away from the stock market to protect her from a possible recession. A lot of other people thought it was a dumb move too. It was one of the smartest moves she ever made. Her 401k is taking a hit because we decided to let it ride but at least she isn't watching her mutual funds plunge.

Schiff was half right about it all. I read work other economists have done that showed a recession in the U.S. would trigger a recession around the world. Peter thought other markets outside of the U.S. might be safe so he took a pretty big hit along with many of his clients. Schiff wasn't the only economist to predict this severe recession/depression. Other economists around the world predicted how and when this recession would hit but they were laughed at too.

This recession wasn't planned in anyway but many people that saw it coming kept quiet until it was time to cut and run. There are many opportunities to make easy money in a recession, especially this one. I think that may have motivated many people to keep their mouths shut.

Jim Rodgers also has been advocating getting out of the US and getting into Asian currencies; companies and commodities.