Nathan Rothschild, baron of the Austrian Empire and head of the Rothschild banking house in London around 200 years ago, and one of the best genius traders in history, built his illustrious trading career on one major principle.
“The best time to buy is when there’s blood in the streets.”
Our streets aren’t bloody yet, but some bank accounts are getting beaten up. Add inflation and the fact that most people will have to do something painful about daily transportation, and you have the formula for difficult times.
What about the news this morning about all that trouble with the IndyMac Bank failure?
As always, disgruntled customers are mad because they can’t get their money out. Some of them were even threatened with arrest yesterday.
That’s friendly banking, 21st century style, right?
And what about the cartoon I saw in a newspaper this morning with the SUV driver parking her giant SUV in the dinosaur exhibit of a museum?
The security guard asks her to move it.
“No, I didn’t park it there. It’s part of the exhibit,” she tells him.
If only we could bring Nathan Rothschild back to ask him what he thinks of all of this.
Would he buy now, or would he wait a little longer?
All of this reminds me also of the house behind me that has been for sale for months. Last time I checked my neighbors had discounted it by $125,000. Do you think they want to sell ?
Which brings me to the conclusion that these are exciting times for real estate investors.
The investors who stay cool, that is, and remember Nathan Rothschild’s moto- Don’t buy until there’s blood in the streets.”
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