The Secret to Building Wealth in Volatile Markets Diversification, Cash, and AAA-rated Instruments with Exposure to MBS – Three Signs of an Incompetent Advisor

Why Investors Will Never Make Any Money in this Bear Market

March 3rd, 2008

March 3, 2008 -

Out of Omaha, Nebraska, this story was picked up by the major global news services today:

“OMAHA, Neb. (AP) — Billionaire Warren Buffett said Monday that the U.S. economy is essentially in a recession even if it hasn’t met the technical definition of one yet. Buffett said in an interview with cable network CNBC the reports he gets from the retail businesses his holding company owns show a significant slowdown in purchases. The chairman and CEO of Omaha-based Berkshire Hathaway Inc. said millions of people have also lost equity in their homes because home prices have dropped.

The technical definition of a recession most economists use is two consecutive quarters of negative growth in the nation’s gross domestic product. “I would say, by any commonsense definition, we are in a recession,” Buffett said on CNBC.

Four weeks earlier, I wrote an article on this very blog called, “Is Recession in the U.S. Coming? We’re Already in One”, that received almost zero attention even though, in essence, I said exactly the same thing Warren Buffet said. And thus, this is just another example of people needing someone famous to say something to consider it newsworthy or more importantly, trustworthy. I’ve already given you a plethora of reasons on this blog as to why you can never trust the commercial investment industry, yet when Goldman Sachs declared shorting gold as one of their top 10 trades at the end of last year and gave price targets of $600 to $650 an ounce, thousands and thousands of the sheep herd worldwide undoubtedly sold out of their positions in gold upon this stark pronouncement regarding the doomed future of gold by such a huge investment “authority”

As I only have about 10 free minutes today, this will unfortunately be an extremely abbreviated entry; however, there’s plenty more online at this blog to read about the truth of the underlying economy and premium, information here for our subscribers only about how to make a fortune from this coming global economic crisis.

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More on this topic (What's this?)
Lessons From Modern Economic Crises (Not for the Fainthearted) (naked capitalism, 10/7/08)
Warren Buffett – The Ultimate Dividend Investor (Dividend Growth Investor, 10/31/08)
Tracking Buffett Yourself (Barel Karsan, 11/17/08)
WSJ Op-Ed: “global depression?” (Option ARMageddon, 11/10/08)
Read more on U.S. Economic Cycles, Warren Buffett at Wikinvest

Entry Filed under: Financial Crisis, Dollar Crisis, & Recession Proof, The Peak Investment Crisis & Stock Market Crash

2 Comments Add your own

  • 1. The Underground Investor &hellip  |  July 5th, 2008 at 10:16 pm

    [...] June 26, 2008 - The One Question That Will Have the Greatest Impact on Your Financial Future May 14, 2008 -  What’s Driving the Price of Oil Higher? It’s the Dollar, Stupid! April 30, 2008 - How Low Will the Feds Go? April 17, 2008 -  Monetary Inflation. How Increased Paper Wealth Can Translate into a Lower Standard of Living March 3, 2008 - Why Investors Will Never Make Money in this Bear Market Feb. 20, 2008 -  The Secret to Building Wealth in Volatile Markets Feb. 6, 2008 - Is Recession in the U.S. Coming? We’re Already in One. Jan. 28, 2008 - The Outcome of the Fed’s Interest Rate Cuts? History is the Best Oracle. Jan. 24, 2008 -  The Fed’s 0.75% Interest Rate Cut - A Recipe for Future Disaster Dec. 7, 2007 -  The Dollar Panic. Is it Real? Sept. 19, 2007 - Signs of a Peak Investment Crisis Keep Coming June 18, 2007 - Alan Greenspan’s Call of Checkmate on China is Premature June 17, 2007 - PIMCO’s Bill Gross and the Economist Agree with SmartKnowledgeU 6 Months After the Fact! May 28, 2007 - The Politics of Higher Oil Prices May 26, 2007 - Asian Countries Pooling Reserves to Protect Themselves from the Incredible Shrinking Dollar, Part II May 25, 2007 - Asian Countries Pooling Reserves, Part I May 3, 2007 - The Death of the 3-Year Treasury Note Apr. 1, 2007 - The Next Cold War Will be an Economic One Jan. 25, 2007 - Dollar-Denominated Bonds Faltering Jan. 9, 2007 - Use the Longtail of Investing to Accurately Predict Dollar Behavior Jan 7, 2007 - 10 Reasons Why Dollar-Denominate Bonds Aren’t Safe Dec. 21, 2006 - Iran Presents More Trouble for the U.S. Dollar Dec. 7, 2006 - The U.S. has Perfected the Incredible Shrinking Dollar [...]

  • 2. more information here&hellip  |  August 28th, 2008 at 5:18 pm

    more information here…

    You are right I think you have said it very well…

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