Latest U.S. Economic Forecast: Apocalypse

Posted In: Advisers, Bailout, Banking Crisis, Commercial Real Estate, Crash Prophets, Credit, Depression, Derivatives, Economy, Farmland, Gold, Home Prices, Housing, Hyperinflation, Inflation, Recession, Unemployment

Peter Brimelow from MarketWatch talked about Harry Schultz, the highest paid investment consultant in the world, and his International Harry Schultz Letter this morning. For those of you not familiar with Mr. Schultz, I wrote about him back on December 13:

Have you ever heard of Harry Schultz? I sure have, and to this day I am still in absolute awe of the money this man earns. Mr. Schultz, publisher of the International Harry Schultz Letter, is the highest paid investment consultant in the world at $3,500 an hour (or $4,900 an hour if you require his services during the weekend).

Brimelow, in “Schultz still sees an apocalypse,” wrote that since Schultz declared a “financial tsunami is upon us” in the December issue of his investment newsletter, the Dow Jones Industrial Average has lost some 2,000 points. According to Brimelow:

So I checked to see if Schultz is any cheerier.
Answer: No.

The MarketWatch columnist talked about Schultz’s latest U.S. economic forecast. He said:

Schultz writes: “It’s a derivative crisis, stupid!… 9,000 U.S. banks failed in 1929-1932; look for new records… Hyper-inflation is a distinct possibility; stay awake!”

Among his more colorful recommendations: “Buy a few local non-rare gold coins of whatever country you are in for emergency/barter use, smallest denominations… Keep 6-12 months cash at home/ office/ lawyer-doctor office. Pretend an emergency is coming, because it may be.”

According to Brimelow, Schultz recommended traditional inflation hedges that were popular in the 1970s: art, commercial property that yields certain income, and farm land. In addition, Brimelow noted that:

The HSL section called “Actions To Take - In A Nutshell” epitomizes Schultz’s combination of sensational and shrewd. It begins: “The global derivative/credit crisis is nearing breaking point. Take immediate measures to safeguard your assets before it becomes too late, due to sudden (bank/government) restrictions on cash withdrawals, wire transfer limitations, the loss or recall of credit facilities, frozen fund redemptions, foreign exchange controls, etc…”

This outlook is consistent with what Schultz was predicting in his December newsletter. From MarketWatch on December 13:

Among other interesting ideas raised by Schultz in his intense, somewhat terrifying introduction: recession, possibly depression; bank failures; exchange controls; housing prices down by 50%; credit card company failures; money market fund dangers; tripling of U.S. jobless numbers; federal bail-outs for Fannie Mae.

Apocalypse, indeed.

(Note: The author disclaims any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

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