Seaferer20

Bill Miller on This Tough Market

Over the past 20 years America has gorped its way to an in extremis position. Hank Paulson and Ben Bernanke are frantically trying to bail out the swamped boat. The government is in debt up to its eyeballs, corporations are being bailed out by foreign sovereign funds, and consumers have hocked their houses (which are now plunging to their actual market values).

The financial services industry thus far has acknowledged $300 billion in losses but the bottom has yet to be found. How does $1 trillion grab you? This mess will not begin (underlined) to fix itself until the real value of the American economy has been determined. In the process FNM and FRE should be placed into receivership, their management scoundrels fired and both GSEs dissected into manageable entities.

As for buy and hold, those of us in our sixties will find it challenging to await 2030 or whenever. IMHO cash, TIPS and very short duration foreign bond funds (PIMCO has one) are the safest places to be for at least the next several years.