Fannie Mae and Freddie Mac, Lehman Brothers, General Motors and dozens of other companies that have all either morphed or collapsed since the “Great Recession” came on the scene, got bailed out, sold or merged in 2008.

Too Big to Fail

..

There might be some who think we’re past the worst of it.

Things are getting better aren’t they?  The nightly news anchors tell us that all the politicians are back to work.

Rates remain low, housing is getting more expensive as the REOs have been absorbed and the stock market is at all time highs.

There remains an unease on main street. Unemployment remains high and the jobs that are available don’t pay enough to support the same life style that the middle class once had.  Those who lived in the 50’s; middle class families enjoyed higher standards than they do today.

What happened to us?

Ozzie and Harriet Nelson, the Cleavers, and single parent Andy Griffith would have a hard time meeting their financial obligations today. The Brady household with 3 boys and 3 girls would certainly not be able to afford Alice, the housekeeper today.

This is controversial, but it needs to be said. Our cash system that is supported by the full faith and credit of the USA is vulnerable. The US Dollar, the world reserve currency since WWII is being supported with a printing press and the Federal Reserve that has been until recently buying  $85,000,000,000 (billion) per mo. of USA Treasury promissory notes. This is not sustainable.

There is a crisis brewing that can threaten your way of life. Where you shop, where your kids go to school, your savings and where you vacation will be impacted if inflation returns… and it will.

Save money for a rainy day, the traditional wisdom says. Where you ask?
Here is the list:
1. HOUSES
2. GOLD / PRECIOUS METALSThe Old Buick
3. BANK ACCOUNTS / CASH
4. STOCKS AND MUTUAL FUNDS
5. COLLECTABLES

Think this through. Every saving vehicle that you invest in has some risk. Everything you invest in offers increase of your capital. They are not equal.

Here is what you should look at with each investment.
1. Income
2. Depreciation
3. Equity build up
4. Appreciation
5. Leverage

Then look at a home and compare a rental home…    it should start to make sense.

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