Cynical Investment Strategy

Barry, My Liege:

Despite the looming shadow of doom facing humanity, some souls may be wondering about how to make good investments.

Personally I think spending some time in the sunshine and playing with grandchildren is the best possible investment; but, others may disagree.

Consider that the recent financial crisis consisted of an asset bubble in real estate followed by crashes of markets for all assets and commodities and a pretty severe recession.

Is it likely to happen again?

These events were caused by the felonious bankers at the top of our financial system who committed massive frauds in order to make thermselves richer.

And, My Liege, these are some of the very fellows who have bankrolled your political career.

For shame, My Liege; for shame.

You can read the full story from William K. Black as seen on the Bill Moyers show here http://billmoyers.com/episode/full-show-big-jail/

I digress.

The same criminals who perpetrated the recent crisis are not only free from prison, they are still in charge of our financial system.

It's a sure bet that we will see another asset bubble followed by a financial crisis and collapse. After all, it is what they do.

Were I to look for coming asset bubbles I would look for commodities essential to life. Although we cannot monetize air, we can surely monetize water. In fact we are doing so around the world.

I would look for rapid price increases in essential commodities like water, grains, metals, oil and so forth as a possible sign of an asset bubble.

If signs of a bubble are visible, then it may well be time to sell off physical assets and convert to cash and hold the cash while looking for distressed assets.

Your faithful servant,