How the Smart Money Lost $1 Trillion, So Far

Think of the famous lyric of the great country western song, "The Gambler."

You've got to know when to hold 'em; know when to fold 'em; know when to walk away; know when to run.

This is exactly what we've got to know. This is exactly what the central planning agency has to know. But it cannot possibly know this. There are too many decision-makers, who own too much property, who face too many different local situations, for any central planner to come close to understanding what drives the economy, moment by moment, let alone far into the future.

The best and the brightest in the investment world do their best to figure out when to buy, hold, and sell. If they are deliberately misinformed by the rate of interest, because the Federal Reserve is tampering with the rate of interest, the best and the brightest will drive the economy off the road. This is what has happened.

Gary North wonders how the average Joe can possibly make sound financial decisions when the best and brightest are stumbling and bumbling along with no clear idea of what the best approaches are.