Wealth is disappearing at an alarming rate as the markets continue to take a beating. All investments are down and none are immune. Wealthy investors with all of their resources were unable to respond from this Black Swan event.
2008 Year to date performance of notable investors:
- Warren Buffett (Berkshire Hathaway): -43%
- Ken Hebner (CMG Focus Fund) -56%
- Harry Lange (Fidelity Magellan): -59%
- Bill Miller (Legg Mason Value Trust) -50%
- Ken Griffin (Citadel): -44%
- Carl Icahn (Icahn Enterprises): -81%
- T. Boone Pickens: Down $2 billion since July
- Kirk Kerkorian: Down $693 million on his Ford shares alone
The crisis continues to gain momentum and there appears to be no real leadership. This vacuum will be filled by somebody or "something". As we race to my target date of 1/11/11, articles are beginning to appear with the "2011" year as the focus. The following article lists 30 reasons for the Great Depression II:
These 30 reasons are all plausible. The arrogance of America is coming home to roost. We have no fans in foreign countries to bail us out. It will be a humbling experience to face the reality once the curtains of illusion are drawn back. The perceived bully who has invoked its national interests above the sovereignty of other countries will receive little or no mercy from its enemies. Were we right to pursue this foreign policy? I am not qualified or adequately informed to make an educated guess. However, I am qualified as a fruit inspector to view the fruit to determine whether it be "good or bad". We can and should judge the fruits. We are not equipped to judge the hearts of men, only Our Heavenly Father is. 9/11 should have been a time of repentance, not defiance. Our covering was lifted then. The very place where the U.S. was attacked turns out to be the same place where the weapons of financial mass destruction were created. What an irony!
I expect Prayer Vigils will spring up around the world. As the U.S. gets deeper into the crisis, all countries will feel the effects and many will suffer its consequences. Just as Israel turned away from GOD in the Book of Judges, catastrophe brought them back on their knees… over and over. I suspect a good investment would be in the manufacture of knee pads!