Playing By the Rules is For Saps

A dystopic email comment from my very smart friend Jeff Norman of Alpha Centauri Capital Management here in San Diego:

Here’s my prediction as to what will happen:

If you played by the sensible financial rules all your  life, saved money, invested most of it in mutual funds now find that the government has taxed you over a trillion dollars to bailout institutions of immense former wealth, whose top employees have prospered outrageously.

Now you may end of giving more of it to neighbors who bought houses they couldn’t afford and mortgage companies that were contemptibly greedy.  You can also expect to be bailing out some lost cause state and local government or quasi-governmental agencies.

Finally, after the markets have been successively devastated by each new round of bailouts your residual portfolio will be subject to the ravages of a bout of inflation that makes the 70s look tame.

There will then be no bailout for you.


(Adopting a saying from the Czechs)

You can spend one trillion, two trillion, three trillion or four, but you cannot stop winter from coming.