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Is It Safe?

I agree, that the banks shouldn't be paying a dividend, at this point in time. When you are receiving "assistance" from the government, it doesn't look good, passing it through to just the banking sector. This is preferential treatment... Taxes will increase for investors in every sector, to pay for this, so investors in the banking sector should not be the only beneficairy of a "pass-thru" dividend.

Is It Safe?

"What it means is that we are now, in all probability, looking at tough times reminiscent of the early 1980's, not at tough times reminiscent of the early 1930's. Did the early 1980's suck? Oh yeah."

Hmm... I'm getting 3.3% on a large CD. I had a small CD, back then... It was 11.5% on a 6 month maturity. I will never for get that... 11.5%. :-)

Stay Clear of Traditional Asset Classes

Although, this near-Armageddon scenario may not occur, so it may. This is the clearest and most coherant "big-picture" of the possible reaction, which I've seen (read). While I would stress that this may not occur, it appears plausible and anyone would be wise to devote a portion of their investments, to address this contingency... Many things could change to make this picture somewhat better, or, even worse. I doubt whether I will have a flat tire, over the next year or two, based on my experience, however, I devote 25% of my investment in tires to address the possibility of a failure (4 active and one spare)... I would not hesitate to devote 25% of my financial investments to a defensive strategy, addressing the issues which the author raises. Are the speciific investments that he recommends, the best? I don't know, just as I don't know what brand of tires might be best, but I sure believe in carrying a spare, even though I haven't had a flat in many years.

Excellent analysis of the elements of risk, contained within our national economy! Not a very pretty picture, but "good job" on revealing the underlying pathology, of our economically-challenge... patient, indeed! I'm not sure about the treatment options, but the prognosis is sobering and ought to affect the patients lifestyle, so long as the patient still desires to live.