Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: carranza2 who wrote (70924)	1/4/2009 11:08:30 AM
From: Maurice Winn	1 Recommendation Read Replies (1) of 74559

I don't understand this: <Treasuries provide a modicum of safety > Isn't "treasuries" US$ by another name? Nor do I understand "risk premium" applied to shares as in "share dividends should be higher than returns on money because shares are more risky than holding money". How are shares more risky than money? Owning shares is betting on private property remaining in private ownership [taxation and regulation notwithstanding] and that shareholders will try to make a profit by hiring management and staff to do good things. Owning US$ is betting that the electorates and the politicians they hire will do sensible things with a goose laying golden eggs. Betting on electorates being sensible and betting on politicians to be reasonable is not a bet I like to take. Since I have for a decade been on a mission to replace the US$ and treasury, and their long term value is zero, I don't see how they are a good investment when people competing for the nominal returns value those returns so much higher than I do. I have held US$ for some time, but that's as an interim store of value transaction medium rather than thinking the interest rates are good. The risk premium should be on "treasuries" not on shares and other assets. If I had to shut my eyes and hold an asset for 30 years, I would choose gold over "treasuries". Mqurice

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