Moving right along: Listen to investor/businessman Charlie Munger on the current economic situation. It may be one of the most thought-provoking things you’ll see this week. Maybe this month.
Take a look at that lead-in: “Most people will lose everything.” Personally most of our resources are in land and equipment, but both Mrs. Animal and I do have investment accounts, and what this video predicts is alarming:
Some of us (like me) are old enough to remember the recession of 1981-82. Paul Volcker hammered interest rates up high enough to drive down inflation, and it hurt; President Reagan took a lot of heat for the economy early in his first term, but by fall of 1984 things had turned around enough to give the Gipper a 49-state landslide re-election.
Watch the video. Think it over. Discuss in comments. Personally, I’m keeping a good supply of precious metals (brass and lead) on hand. If nothing else, Mrs. Animal and I will be able to eat; there are plenty of moose and other game around hereabouts.
The major cities won’t be so lucky.