Popular Investment Letters Warns U.S. Stimulus Is Creating Dangerous Debt, Recommends Move to Gold Stocks

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Financial expert Michael Lombardi, writing in a popular on-line investment and market letter, warns that the current unprecedented level of monetary and economic stimulus is threatening the long-term viability of the U.S. dollar. In response to the risk of reckless stimulus packages undermining the USD's value, Lombardi urges investors to consider purchasing gold stocks, which current market forces have made more affordable.

Michael Lombardi, MBA, writing in today's Profit Confidential, a popular on-line investment and market letter, warns that the current unprecedented level of monetary and economic stimulus is threatening the long-term viability of the U.S. dollar.

In his report released today, Lombardi states, "Ben Bernanke and Hank Paulson are, in my opinion, as close to dropping dollars from airplanes that we are going to get. The amount of monetary and economic stimulus is unprecedented. Unfortunately, the money is being proverbially dropped from airplanes into the backyards of banks that are hoarding the cash instead of lending it out to small businesses that need it."

Lombardi has long warned of the risks posed by unsustainable housing market growth and the risk it posed to the economy. On January 21st, 2008, Lombardi wrote, "Prepare for the worst economic period ahead that we have seen in years, my dear reader, as that is what I see coming. I've written over the past three years about how, in the late 1920s, real estate prices fell first before the stock market and how I felt the same would happen this time. Home prices in the U.S. peaked in 2005 and started falling in 2006. The stock market is following suit here in 2008. Is a depression coming? No. How about a severe deflationary recession? Yes!"

In an article appearing in today's Profit Confidential e-letter, Lombardi says, "More action will likely be taken to help small businesses in the weeks and months ahead. The negative here is that the entire stimulus is essentially being created with debt and a printing press of U.S. dollars. In the end, this will come back to haunt investors who are not prepared." He concludes by recommending that investors move towards gold, writing, "It's no secret that getting your hands on gold bullion bars these days has become next to impossible. The only gold dealers out there that have them are asking unrealistic premiums. But the depressed state of the stock market, in my opinion, has made the large, quality gold-producing stocks a viable alternative."

For the full report, please visit: http://www.profitconfidential.com

About Lombardi and Profit Confidential:

Profit Confidential is Lombardi Financial's free daily investment and market e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, other investments and the economy. Lombardi Financial is a division of Lombardi Publishing Corporation, one of the world's largest newsletter companies, now with over one million customers in 141 countries.

For more information, visit: http://www.profitconfidential.com

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