15 September 2010

This Week on Bear radio: Deadbeat lending is sweet when someone else guarantees the loan

In this episode Doug Eberhardt joins us to talk about the credit bubble of the last decade, and how those who made risky loans (which clearly couldn't be paid back) may not have been so dumb after all. In many cases there were implicit guarantees on bad loans. Why not invest in Greek bonds if you know that Germany would never allow a default for fear of wrecking the Euro? Why not invest in Fannie Mae bonds if you know the Federal Government would never allow such a critical part of the financial system to default?

In addition, we discuss how investing in Gold is a good idea for security but not as a path to wealth.

You can check out Doug’s web site for more insights on deflation and advice in gold investing.

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You can find all the Optimistic Bear shows here: Optimistic Bear

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