During our Sunday evening May 2nd chat with the rest of the Orton mob, Ed, responding to Ba’s concerns about the economy, declared that we are headed to a depression. Mark seconded that opinion. Karen took all of this to heart and later in the evening Mark and Karen talked over the idea that it is time to get our retirement funds out of the market. Despite the early huge losses, the markets had rebounded and our accounts were only down 6%. But it seems very sure that the world economy will collapse over the next few moinths and we could readily be in for a protracted depression (some will call it a severe recession). Not even corporate bonds will escape the coming waves of bankruptcies in the retail, entertainment and other services businesses. There will be fire sales for jet airliners already parked in storage.
Time to time the market
Monday morning we had a follow up chat with Ed. Following that we made a few clicks on our Vanguard accounts and now we are 100% in Federal Money Market Fund.