Thursday, June 3, 2010
David Einhorn: Buy Gold Now, Adapt Later
In a recent speech, as reported on in Bullion Vault, David Einhorn recommends buying gold for yourself and worrying about the grandkids later. He argued that the current U.S. entitlement regime is unsustainable, and that the salary-and-benefits differential between U.S. government employees and private-sector workers is reminiscent of Greece. He expects a Grecian-style fiscal crisis to visit the U.S. in the near future. The reason he gave for putting aside the worries about the grandkids' future is that most people are adaptive, and are capable of adapting to the changing circumstances. Presumably, the grandkids will too.