Creature From Jekyll Island by G. Edward

performance. To the contrary, they may now be overpriced and 1. T h a t is n o t an easy assignment. It helps to h a v e professional assistance f r o m an i n d e p e n d e n t source w h i c h is able to analyze asset q u a l i t y , l o a n ratios, e q u i t y ratios, loan-loss reserves, a n d the like. O n e of the best sources of this k i n d of i n f o r m a t i o n is Veribanc. For a n o m i n a l fee, this b a n k - r a t i n g service w i l l p r o v i d e y o u w i t h detailed reports o n a n y b a n k o r s a v i n g & l o a n i n A m e r i c a . I f y o u w a n t their b r o c h u r e , w r i t e t o t h e m a t P.O. Box 461, W a k e f i e l d , M A 01880.

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THE CREATURE FROM JEKYLL ISLAND

poised for a fall. See how an investment fared over the long run—at least fifteen years—and particularly how it performed during periods of economic downturn.

5. When investing in coins, avoid those with high numismatic value—unless you are prepared to become an expert. As with other types of investments, seek advice but don't depend on it.

The same is true for diamonds, art pieces, and other collectibles.

Stay with what you know. Otherwise, you will be vulnerable in shark-infested waters where even the most experienced traders can lose money.

6. Maintain a stash of cash, including some old silver coins. The currency should be enough to provide your family with

necessities for about two months. The coins are for more severe and prolonged conditions. There is no "correct" quantity. It is a matter of personal judgment and financial ability.

PROFITING FROM DISASTER

All of this is aimed at surviving the storm and preparing ourselves to offer leadership in troubled times ahead. That is a rather negative view. There is a more positive outlook for those who are looking for good news, as Adlai Stevenson said. It is the exciting prospect that we can turn this calamity to our advantage.

We can actually profit from the coming collapse. That thought has spawned hundreds of books and newsletters offering advice on how to get rich while others are being destroyed. There is even one that gives advice on how to cash in on the environmental-industry boom. The pitch is how to make a fortune on the downfall of America.

There is no doubt that opportunities exist to profit from investment decisions based on a realistic appraisal of current trends. Most of those opportunities, however, depend on making market-timing decisions. One must know precisely when to buy, when to sell, and at what price. To know all that, the investor must become expert on the nature of the industries involved and must monitor the daily shifts in market forces. He must attempt to complete his analysis and reach his conclusions in advance of the crowd. And, of course, he must be right. Most investors are not prepared to do that, so they must depend on the services of professionals, usually the same experts who are encouraging them to invest in these kinds of enterprises. If the investment is profitA REALISTIC SCENARIO

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able, the analyst receives an income. If the investment turns sour, the analyst still receives an income.

That relationship is not unique to the "profit-from-crash"

group, however. It is to be found at every level of the investment business as well as within the legal and medical professions. The customer pays for the advice regardless of its quality. What is disturbing about this investment concept is that it actually may help to make matters worse. By focusing on finding clever ways to avoid the effects of inflation or of making a profit from it, we are doing nothing to stop it and, thereby, encouraging its continuation.

Those who are gaining from inflation are not likely to offer serious resistance to it. As they watch their profits pile up, they may become its most ardent supporters—even though they know deep in their hearts that it will destroy them in the end.

There is nothing wrong with trying to preserve one's capital on the way down, but the only real solution is to use one's capital to stop the present trends. In the long run, there is no way to profit from a destroyed America. There is no refuge from a collapse.

There is no way to protect your assets, your home, your job, your family, your freedom. As Henry Hazlitt phrased it, "There is no safe hedge against inflation except to stop it."