2012 is the end of the Mayan Calendar. Some have predicted the end of the world. My question to my guest, Peter Campbell, today was. “Is this the end of the Financial World as we know it?”
Peter Campbell (www.m3financialsense.blogspot.com) has been on the Mind of Money show before, and today we had a chance to see how some of his previous insights have performed. The verdict is extremely strong that Peter has an uncanny knack for seeing through the BS and to the real story. Two years ago he said the Euro as a currency is doomed, today this is a very real possibility. He forecast last year that the dollar would strengthen along with US Treasuries as the world began looking for safety, today both Treasuries and Dollars are at all time and relative highs.
So what does Peter have to say about 2012? I recommend you watch the full 34 minutes to find out. What I can share is that Peter sheds very clear light on an area of great concern for many of my viewers – Municipal Bonds. Default risk is far from the only threat on the horizon. Peter points out that perhaps one of the greatest risks for even the strongest of the bonds will be plain old politics.
Do we really believe that politicians will pass up the opportunity to get re-elected by “negotiating” a haircut to the detriment of a few non-voting bondholders and dramatically improve the public finances if the whole market is in the same boat?
The message is really a simple one – get safe! Don’t miss this interview.
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