Something strange happened a short while back that has been gnawing at me ever since. I have been in the Financial Service Business for the past 18 years. There are two investment advisor colleagues that I routinely exchange emails with; sharing thoughts and comparing notes on our perspectives regarding market events, investment ideas, etc.
When the Ann Barnhardt “Going Gault” letter surfaced http://www.theblaze.com/stories/going-galt-hedge-broker-shuts-down-firm-with-chilling-letter-about-the-market/ , I sent it to them…and never got a response back. I didn’t think much of it at first…and then a rather dark and somber thought occurred to me that I fear may explain more than I’m prepared to accept.
The implications of Barnhardt’s letter are extremely dire. They portend an inevitable collapse of the global financial system brought on by the greed, corruption and treachery of people like Jon Corzine and the so-called regulators who looked the other way. If this were to happen on the scale that Ann predicts, our clients could lose everything!
This got me to thinking. Whenever Americans have been called on to defend their country in the past, they have always risen to the occasion in a big way. But things are different today. For starters, it’s a little less complicated when the enemy is coming at you from the outside with clear characteristics and intent…such as a swastika and a gun aimed at your head. It’s a little more complicated when the enemy within has the same characteristics as you, and uses ideology instead of bullets…at first.
In our earliest times of crisis we were a thousand times more self-reliant. The farmer grabbed his long gun, hugged his kids, kissed his wife goodbye and did what he had to do. His wife and kids knew what they had to do to keep the farm operating until he returned…God willing.
This is not the case today. The best breadwinners among us have ceded their sovereignty to powers who at the very least are indifferent to the threat. And at the very worst are agents of the threat! And even if this weren’t the case, the entire household has become soft and dependent on lots of “stuff” outside of their control.
Yesterday (before cell phones) we were actually able to talk to one another. We trusted our instincts to tell us when a storm was coming. Today we keep our heads down, beaten into submission by the invisible barriers of political correctness that were erected to corral us. We have allowed ourselves to become the veal of the State!
When I was younger, I ran into a burning house to rescue a dog and her pups. The neighbors kid had run into our house frantic…his parents were out…fire crews on the way…flames & smoke shooting out the windows. The mother dog’s leash was hooked to the refrigerator door and the pups weren’t going anywhere without mom. We never gave it a second thought…in fact our feet were in the house before the first thought! Ah, the way we were.
Today, two fellow advisors…great guys…are choosing to keep their heads down. And here’s where the story takes a dark turn. The volatile political and economic conditions of our time are like one huge dry forest before the Santa Ana Winds. Add the deadly spark of re-hypothecation (Man’s Greed magnified, or leveraged to be more accurate, by an army of indoctrinated quant nerds), and you’ve got some serious smoke! AND WHERE THERE IS SMOKE…!!!
So I don’t care what your politics are. If you are not sitting down, or on the phone with your clients discussing the smoke, then you have put your self-interest before their interests…plain and simple! And there is a HUGE difference between panic and positioning your clients closer to the fire exits…especially when there are others around them who are looking to increase their dose of sedatives!!
But this goes well beyond those in the financial advisory business. The real question is, how many of us are walking by the burning house with our own heads down thinking this won’t reach my neighborhood…or, I can’t afford to yell FIRE? Think again my friend!