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Originally Posted by 427 S/O
His prediction on the financial system is yet in progress, as well a the weaken dollar.
We'll see.........
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I'd agree that we are seeing the largest Federal monetary mistake in our history going forward. Obama and his team are quickly moving us into new "Great Society" programs.
Nonetheless, Schiff's fund lost 48% last year. He was right about the American stock market, but was very wrong on the international stock markets and the direction of the currencies. The world is not decoupled from our economy.
John Paulson actually made his clients a lot of money.
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Paulson & Co. soared an astonishing 550% in 2007 on founder Paulson's bets that the subprime mortgage market would sour, and to follow that up, his various funds posted gains ranging from 7.9% to 37.6% in 2008 -- impressive numbers given the market's dive. Paulson made huge short bets against Fannie Mae (NYSE: FNM - News) and Freddie Mac (NYSE: FRE - News) and other financial stocks in 2008 and then turned around and bought into late-year volatility and arbitrage opportunities in the space.
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Any bet against the US dollar is a bet for another currency. The Yen and Euro have their own problems (they already have their Great Society programs). You can't hide in the ruble nor can you trust the Chinese communists.
I have to pay my monthly bills in US dollars. I look for (safe) investments in dollar dominated assets. Otherwise, I must worry about currency risks as well as foreign stock market risks. I have no experience in reading and understanding foreign currency company balance sheets.
We will see. Money is a great way to keep score. The more you have (after taxes); the better you did.