The venerable Bob Rodriguez, who predicted every bubble and burst going back to the late 1990’s, just wrote his thoughts on the economic stimulus package called – Preliminary Thoughts – The New World Order. He bemoans the excessive stimulus approach that started in 2008 and now the government is tripling down, literally. He calls this the death of capital markets. 

I guess we think we can float bonds and print money ad infinitum. This is what I have feared for years. We would follow Ben Bernanke’s advice to Japan decades ago, stimulus and unlimited federal reserve accommodation forever. There is no end and limit. Once you start this you have to keep going and the government just pushed all the chips to the center of the table and called. 

Bob Rodriquez calls it the “Roach Motel.” If you remember the old commercial; “roaches check-in but they never check-out!”

Here we are, I feel for our kids and grandkids. The bill keeps getting bigger because we were not adults, when we were the adults in charge.

We now have a government put on our investments. I guess we can buy without worry, the government/the Fed will never let us lose. 

It will eventually end in tears with all of this debt and socializing the capital markets. We better make sure we keep a real put on investments with all of this excess. Until then, I guess we ride the wave! 

Hang Ten fellow investors! 🙂

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