Quote Originally Posted by unknownk View Post
You have no clue about history. Paper money was king during the great depression. It was the last great buyup of buildings and land for little money because everybody invested in worthless stocks and were cash poor. Being cash rich in a time where money is hard to come buy means you can buy everything cheaper then it was during the boom, people were desperate to sell valuable items to buy food (which also dropped in price). Major fortunes were made by people who could buy up properties (hotels etc) and wait out the depression because they had cash reserves.



[Marketviews] - What would you do if we had another Great Depression?

"During and after the Great Depression there were endless bargains to be found on almost every conceivable asset – stocks, whole companies, land, houses, machinery and equipment. History has shown that those who profited most from the Great Depression were those who bought assets at rock-bottom prices once the Depression was in full swing. In order to do this they needed to have cash on hand; and you would do well to do the same if we had another one. Hold lots of cash."
A real-life example of this was my stepmother's father (I'm from Iowa). During the depression, people couldn't afford to feed their cattle. He bought a few hundred throughout the depression for around a dollar a head. Then just let them run in the pasture and eat grass in the summer; Hay, that he'd baled, in the winter. When the Depression was over prices soared and he became a millionaire. She and my Dad divorced in the 60s and never remarried. With her half of the inheritance, she doesn't even know how much money she has. She doesn't even spend the interest each year. My half-brother gets it all when she goes.