Cash May Be "Trash"
Friday, July 13, 2007 - FreeMarketNews.com
In some quarters it is becoming fashionable denigrate cash, because there are so many other things one could do with it- like buy overpriced securities. Nonetheless, as the spreading derivatives mess on Wall Street is starting to show, when liquidity begins to dry up, cash – as opposed to a security that's been marked down by 50% - can start to look pretty good.Andy Sutton, writing on financialsense.com states:"While a great many lessons may be learned from the Great Depression, the one lesson that we should forget is that cash is King. In a brave new world of reverse mortgages, collateralized debt obligations and fractional reserve banking, cash is no longer King; cash is trash."Ian Cooper, writing for the newsletter, The Sleuth says:" I'd love to sit here and jump on the bullish housing bandwagon that dominates Wall Street. Really, I would. But I’m not a fan of flushing my money down the toilet." Staff Reports - Free-Market News Network
In some quarters it is becoming fashionable denigrate cash, because there are so many other things one could do with it- like buy overpriced securities. Nonetheless, as the spreading derivatives mess on Wall Street is starting to show, when liquidity begins to dry up, cash – as opposed to a security that's been marked down by 50% - can start to look pretty good.Andy Sutton, writing on financialsense.com states:"While a great many lessons may be learned from the Great Depression, the one lesson that we should forget is that cash is King. In a brave new world of reverse mortgages, collateralized debt obligations and fractional reserve banking, cash is no longer King; cash is trash."Ian Cooper, writing for the newsletter, The Sleuth says:" I'd love to sit here and jump on the bullish housing bandwagon that dominates Wall Street. Really, I would. But I’m not a fan of flushing my money down the toilet." Staff Reports - Free-Market News Network
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