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Have You Seen This?

Have You Seen This?

  • The Room – 04/10/2009

    A quick comment is in order on the recent stock rally. While I could provide that comment, few people do the "dose of reality" thing better than my globetrotting partner and friend of many years, Doug Casey.

    Begging the forgiveness of our paying subscribers to The Casey Report, I would like to quote Doug from the current edition, just published...

    Just a few words about where we're in this ongoing crisis. While many in the media are now saying that things are looking up, and that the worst may now be over, I think it's just begun. For several reasons...

    For starters, stocks are cheap relative to where they've been over the last five years, but they're not cheap relative to historic bottoms (e.g., 1 times book, around 6-8 times earnings – after big earnings cuts - and 6-10% dividend yields). Treasuries are in a bubble. And, as hard as it has fallen, residential property has not yet bottomed.

    But the worst is yet to come. And I'm not talking about student loans, car loans, and credit card debt. Or Social Security, Medicare, and Medicaid. Or the looming bankruptcy of most states and many municipalities. The real crisis will be in pension funds, commercial real estate, and life insurance companies. The life insurers own mostly commercial real estate, mortgages, and bonds; many will be totally busted, even before people start cashing in their whole life policies. You don't even hear about these three things in the press yet....
  • The Room 3/24/08

    Dear Reader , It used to be of no little pride in the small New England town where Casey Research is headquartered that school went forward, no matter the weather. Hail, 8-foot-high snow drifts, ice rain and, should they have occurred hereabouts (which...