Even Cash May Not be Safe

This is a reminder. There is no good place to invest money. Cash is best but cash is not completely safe either. Stocks are a death trap. For the past four years corporations have bought their own shares as a way of reporting record earnings while business has worsened. Corporate buybacks also create giant paydays for insiders who get to exercise stock options at astronomical prices. The elderly and others who need an income from their savings have been herded into high risk situations in order to maintain their lifestyles. Privateer firms or “Friends of the Fed”, get advance information in return for constantly augmenting stock prices by running the stops placed by short sellers and using high frequency trading to sabotage the trades of all other investors.

For those who hold cash, the most positive outcome is a market crash that will create the buying opportunity of a lifetime. The problem with cash is that of actually getting possession of it. The banking system will probably fail. When desperation sets in, authorities may opt to force customers to take stock in a failed bank or brokerage. Buy-ins have been used when some foreign banks have failed. Still, cash is best. It isn’t completely safe. It is only assumed to be.

Americans see themselves as a free people but this is highly uncertain. Technically Americans have lots of rights and freedoms. However, since the beginning in 1776, citizens have not once reined in government or even exercised authority over government. Self government actually has not been tried.

Are Americans free? The only way to find out is for Americans to attempt to use the freedom they claim to have.

Common Sense Economics is 78% cash and 22% short stocks. For the first time in over 12 months short positions have been increased slightly.

Euphemism Mountain is a Curbside Jimmy Favorite. It is about life as Americans insist it is.

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