Pessimism Accelerates

—WCN Warning: Economic/Terrorist event possible—

“Pessimism accelerates.” Just heard that phrase on NPR’s Morning Edition.

What an understatement.

We are in the middle of what will be viewed, years from now, as the beginning of the “Greater Depression.” It’s here. The only question is “how long before the first bank holiday?” While the Presidential candidates debate Iran, nuclear power, social security (remember that almost-forgotten crisis?) and Medicare, the economy melts down, banks fail, and the Government tries something new every day to try and avoid catastrophe for yet another a day.

There are many websites with advice about protecting yourself and your assets. A couple of the best and most direct are:

Urban Survival

Jim Sinclair’s Mineset

In short, WCN suggests:

Having some cash safely accessible. Jim Sinclair suggests an amount that represents what you’d need for 1 or 2 months of no access to your accounts.

Having food and water stored. This is a good idea, even in good times. What if your local grocery store shelves were empty? How would you feed your family?

Look at any equity investing carefully. The stock market is in dramatic decline. Recession, a lack of investor confidence, and the credit crunch are all conspiring to drive prices down. Investors need their cash, and that means selling. I have no equity positions in any retirement fun. Sure, Treasuries and Money Market funds (still not the best idea) provide very low rates, but as Mark Twain (or Will Rogers) says, “I’m less concerned with the return on my money than I am with the return of my money.”

Be safe.