another great depression feb 2009

When you look at the years prior to the October 1929 crash and the subsequent Great Depression there are some earily similar parallels to today's situation.

The roaring 20's were very similar to todays markets.... low interest rates; low inflation; high borrowings and leverage with a booming housing market.

What does worry me though is that the housing market started to go into freefall some 18 monthe before the crash.... in my calculations that gives us about 7 months to liquidate all your shares into cash and put it into the fireproof floorsafe.

I onced asked my grandfather what it was like living thru the depression. At the time he owned a country pub.

This is what he said.... "If you knew(& had the money) that a new car next year would definitely be less than a new car this year... what would you do?"

A scary thought but... Cash was King.

cheers