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Financial Advice for a Market Crisis: Four investing lessons

Posted March 18, 2008

"You can’t count on government officials to warn you of impending disaster, whether it be the next war, depression or monetary crisis." — Mark Skousen

by Mark Skousen

Baltimore – (TFN):  Falling real estate prices, an unrelenting decline in the U.S. dollar, gasoline prices approaching $4 a gallon, gold hitting $1,000 an ounce, a grinding bear market on Wall Street….

How does one survive and prosper during a financial crisis that just won’t go away?

The latest crisis occurred this weekend, when the Federal Reserve engineered a bailout of Bear Stearns, a major U.S. bank that was selling for $70 a share just a week ago, and today is selling for under $4.

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Former Wall Street exec reveals secretive intelligence that’s been making the investing elite richer for close to six decades.  And now this “intelligence” will trickle down to a small group of people throughout the country.
 
Click here for the full report.

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The Fed also cut a quarter point off the Discount Rate, and opened up the Discount Window to brokerage firms for the first time since the Great Depression. It is expected to cut the Fed Funds Target Rate substantially at its meeting tomorrow.

Not surprisingly, the dollar fell and gold rallied.

Having lived through many troubled events in my 35 years on Wall Street, let me pass along a few important lessons.

Lesson #1: You Can’t Trust Government or Big Business

You can’t count on government officials to warn you of impending disaster, whether it be the next war, depression or monetary crisis. The great French economist Bertrand de Jouvenel once observed that those in power have “the least foresight” as to where we are headed. Government officials are notorious for withholding the reality of the crisis, whether it be the rate of inflation, the cost of war, or an impending bank failure. Big business isn’t much better. Bear Stearns released a statement saying everything was fine two hours before JP Morgan stepped in to shore up the investment bank.

The best source of information is from private economists and independent analysts – the kind you get at Investment U. We’ve been warning of trouble for several years now, following the Fed’s reckless “easy money” policies. Read on to learn three more lessons of a market crisis.

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