Harry Schultz Comments On The Fannie, Freddie Bailout

Harry Schultz of the Harry Schultz Letter is touted as the most expensive financial newsletter in the world. I’m sorry, I can’t affort to subscribe. Harry resides in the safety of Switzerland.

With regard to the Fannie Mae Freddie Mac bailout, Harry Schultz had some similar comments to mine (great minds?) such as – notice they pick the weekend under cover of markets closed.

More specifically, Harry lends this advice: Any US Dollar injection big enough to avert a depression triggers runaway inflation. The Fed’s maneuvering room is gone, the U.S. is on a knife edge.

Bill Gross if PIMCO made the news and blogs last week by indicating he thinks the U.S. needs to spend MORE of its money bailing out the guilty parties in this mess. The key word for some there is the word “more”. This means Bill Gross knows that the U.S. Government, Fed, etc is already manipulating the markets.

Harry on Bill Gross’ comment: He (Bill Gross) went crazy last week, wanting Uncle Sam to bail out everyone all in the name of saving the system. Either he is a closet socialist, a corporate fascist or just trying to get the government to bail HIM out of 61% of the toxic waste he holds in his portfolios.

According to Schultz: If Bush bails them all out, the die would be cast for inflation unseen in the West since 1923 Germany. If no bail out, then Hello 1929.

Over the next 9 years, Schultz sees a progression of stagflation, then deflation, and ultimately depression.

“For the moment, seal off major wipe-out risks. Exit all money funds and currency time deposits, step up gold & oil positions, move into 1-2 year government bonds (non-US $) in First World nations. Swiss first choice. Think not of yield; think of an ark’s life preserver around your neck.”

When this current correction on the U.S. dollar, oil and gold ends, gold should resume its upward track towards Harry’s target of $1600 per ounce.

One could say that Harry Schultz is old (in his eighties) and just not with it anymore. Then again, you could say he has the wisdom of age and isn’t fooled so easily as some of the younger crowd.

If you want to place your bets on the side of Harry Schultz, here are a couple of links to help you:

Casey Report
the TREND letter (You must subscribe through this link to get the $50 discount)