Mark Pincus has a great blog entry on the US economy here. A portion of his post is posted below:
"I can't see how the dollar can't decline given that the fed is dropping rates to save the economy and counter tightening credit markets; meaning rates paid on dollar fixed income deposits will go down relative to other worldwide oppts. It seems that at some point the federal govt will have to start offering higher rates on t-bills as noone will be willing to buy its paper at low these rates.
So what happens when the fed is lending cheap and borrowing high? Seems like that spirals deficits even faster which btw contribute to obama's calls to raise taxes and 'pay our fair share'.
Where does this all go? Seems only outcome is higher taxes and interest rates along with record inflation as the dollar dives and real assets esp commodities skyrocket. Assuming that the rich give their money to hedge fund managers who are smart enough to bet on these trends, we end up with even greater concentration of wealth as a very small few avoid the economic landslide and increase wealth while the majority share a fairly equal misery."
The things I'm doing besides Founder's Co-op which I admit is not totally in synch with this economic outlook are:
- International Real Estate
- Google stock (yes, I bought a bunch at $415 -- feeling happy about that today
- And I just bought SKF -- shorting the financial sector again. With all the people thinking we're out of the woods on the economy, I still don't think so. I bought it at a price of $99.