[Homestead] Take cash from bank / Roubini
Clansgian at wmconnect.com
Clansgian at wmconnect.com
Tue Sep 16 08:47:52 EDT 2008
> >1. Nobody knows the future for sure.
Yet in the major topics shaping out times like oil and finance, a pattern is
emerging. Some people have a very good track record for analyzing and
predicting the flow to things and some have just the opposite. It's not just one of
those things with the lottery balls bouncing around, it's not random. Some
analysts have been uncanny accurate in their predictions. Spooky, even.
>> The primary value of a professional financial advisor is
> they make decisions without the emotion that the individual always
> has. Their negative value to a person of homestead mindset is they
> don't think like us; they choose from traditional investments.
Also financial advisors fall for Upton Sinclair's saw, "It is hard for a man
to understand something when his income depends on his not understanding it."
That is, never ask a barber if he thinks you need a haircut. Putting your
money in a mason jar, investing in tools and fencing and such, buying bulk food
.... financial advisors make no money in such a world and so that advice is
unlikely to be high on their list.
>
> 5. Bottom line, I like land that will produce food and fuel, and then
> invest in seeds and tools and common necessities such as clothes,
> salt, toothpaste, toilet paper. And good beer.
Do that first. But there's another tack to this. Get into a cottage
industry and invest your money in yourself rather than someone else's industry. For
example, if you were a quilt maker, buy bolts of cloth, batting, thread,
frames, etc. Those things stored well are inflation proof. If money becomes
worth one fifth its current value, then in the future you charge five times as
much for a quilt ... your original investment back with interest that keeps up
with inflation plus the profits from your own involvement:
"He who by the plow would thrive
Himself must either lead or drive."
(From Poor Richard's Almanac) </HTML>
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