CASH - Commentary from a Friend
Insight on Investing
by Adrian Mastracci,
Fee-Only Portfolio Manager
The US is developing an insatiable addiction to debt.
Investors and taxpayers are swamped with mind numbing numbers.
A trillion here, another trillion there.
That is a lot of precious cash they don't have to just toss it around very casually.
Investors and taxpayers are not ready for the toxic taste of how to to pay for this.
Imagine someone fessing up to a consultant that his situation is in the deep glue because he borrowed far too much.
Now imagine that consultant telling him that the way out of the sticky glue is to borrow a bunch more he can't afford.
Say that someone is the US Government, now heavily preoccupied with ballooning bailouts and stimulus spending.
Maxing out the government credit cards has many repercussions and consequences down the road.
I thought that one smart way out was to tighten the belt and reduce needless spending.
However, simple logic gets murky awfully fast in the spin of government economics.
And they also hope that cash strapped consumers continue spending even more money they too don't have.
That is a lot of harsh medicine to swallow all at once.
So, let's call the spade what it really is.
The US is mortgaging its precious future, yet again.
I think the US would be better off to stop bailing out everyone.
Let the weak fade away and the strong survive.
The convoluted mess would right itself sooner.
I favour investing in winners, not mediocre picks.
Digging the bigger hole can't continue unchecked.
Unfortunately, government economics follows different scripts.
Our speciality is designing and managing long-term investment portfolios. Our advice is objective, unbiased and without conflicts of interest.
by Adrian Mastracci,
Fee-Only Portfolio Manager
“A trillion here, another trillion there"
For Immediate Release
Vancouver, BC (March 03, 2009):
The US is developing an insatiable addiction to debt.
Investors and taxpayers are swamped with mind numbing numbers.
A trillion here, another trillion there.
That is a lot of precious cash they don't have to just toss it around very casually.
Investors and taxpayers are not ready for the toxic taste of how to to pay for this.
Imagine someone fessing up to a consultant that his situation is in the deep glue because he borrowed far too much.
Now imagine that consultant telling him that the way out of the sticky glue is to borrow a bunch more he can't afford.
Say that someone is the US Government, now heavily preoccupied with ballooning bailouts and stimulus spending.
Maxing out the government credit cards has many repercussions and consequences down the road.
I thought that one smart way out was to tighten the belt and reduce needless spending.
However, simple logic gets murky awfully fast in the spin of government economics.
And they also hope that cash strapped consumers continue spending even more money they too don't have.
That is a lot of harsh medicine to swallow all at once.
So, let's call the spade what it really is.
The US is mortgaging its precious future, yet again.
I think the US would be better off to stop bailing out everyone.
Let the weak fade away and the strong survive.
The convoluted mess would right itself sooner.
I favour investing in winners, not mediocre picks.
Digging the bigger hole can't continue unchecked.
Unfortunately, government economics follows different scripts.
Adrian Mastracci, Portfolio Manager
KCM Wealth Management Inc.
"Fee-Only" Portfolio Managers & Financial Advisors
Suite 1500, Box 1078, 885 West Georgia Street
Vancouver, BC, Canada V6C 3E8
Tel: (604) 739-4500 Fax: (604) 739-0234
Website:
Our speciality is designing and managing long-term investment portfolios. Our advice is objective, unbiased and without conflicts of interest.
2 comments:
I always figured rule one when you find yourself in a hole was to stop digging. However, as I'm not a genius like President Obamessiah reportedly is, I'll have to remember in future that the solution is to dig harder.
since Obama has taken office the US markets have lost 25 per cent.
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