Bill
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Worth reading and understanding.
The background painted in this article make it quite clear that historically the concept of debt as a asset is fine until the day the debt cannot be carried or cannot be recouped or repaid as at that point both the debtor and holder of the debt have nothing. So the idea today that owning debt instruments be it mortgages or loans that are owed to you is only as good as the ability to pay.
Smith also reconfirms to us that there are only three kinds of assets that have intrinsic value in difficult times….. productive assets that have a daily need, think toothpaste or a razor…. alternative stores of value that encompass everything from eggs to gold….. lastly the knowledge and experience in your head that is needed by society, think shoemaker…
The rest of so called assets from the trivial to the fashion (new phones, or the seasonal hue of blue in a suit or jeans) are nice but not necessary as you can do without and will do so when push comes to shove.
When this bubble pops, we will see quickly the realities of the day.
http://www.jsmineset.com/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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