Assuming the U.S. spends itself into extreme financial trouble within the next two years (which I fully expect to happen) where is an unexperienced investor going to be able to safely put his money. Obviously putting your money into U.S. stocks/bonds/etc. is not going to be a safe haven. I've read you book but I must admit at times it's a bit too technical for me and sometimes a little over my head. So a direct simple answer will surely help me in what to do now. THANKS Bob Miller

A lot of analysts think that we are still in a bear market and that we are due for another plunge to the 600 range on the S & P. What is your opinion on this?

What are the root causes of the most severe economic crises in the United States since the Great Depression? What changes need to be put in place to avoid a similar crises in the future?

Stock market has done well since March. However employment situation has yet to improve or may actually get worse. So some people say there is a danger of double dip and the government cannot do much about it. This could be a bad news for the stock market as well. What is your take on this?

The other question I have is about portfolio allocation for the coming year. Do you think we should be cut back the stock exposure after big run up? Do you think stock prices are a bit too expensive now in general even though they are still cheaper than pre-recession level? Thanks.

What is your asset allocation for 2010-2012?

If you had $100,000 now to invest, where would you put it to balance both reward and risk? I agree with the asset allocation question for 2010 - 2012 by Ricardo Gutierrez.

If the u.s. economy is wholly based on the consumer,can it ultimately survive.
And therefore does the u.s. government have a viable economic policy.
Without a manufacturing based economy,where do the jobs come from.

Dear Mr. Ferguson,

What is your opinion on the rise of the .99Cent Stores (dollar stores) and the fall of many giant department stores and institutions that for years held the upper hand in retail market? Before these mostly foreign owned .99Cent stores started popping up all over the country, many retail giants were catering to the rich and middle class. Many of the poor could not affored to buy some of the simple items, like bath towels at $10.00. But at the 99Cent stores, a family could buy ten bath towels for $10.00. I believe the hidden idea of the flood of .99Cent stores was to break the U.S. economy and to break our capitalismic hold on the world's trade markes. I apologize for not having the proper financial or economic language associated with your profession.
Thank you,

do you agree with many economists (such as paul krugman) that higher inflation targeting would get the united states out of a "liquidity trap" and get the economy moving again? if not why not?

Niall - When the US govt stimulus programs eventually are exhausted, commercial real estate loans default, 4 million residential mortgages may be under water in the next few years resulting in further contraction of consumer and business spending and an eventual bust of commodity prices, continued high unemployment - are we facing "The Next Great Depression" ?

Good evening Niall. I have enjoyed reading your book very much, being from Scotland myself I feel a kinship with most of your themes.
Big picture questions: Is this the beginning of the end of the era of Western global leadership, and living standards? I feel unbridled greed is a root cause of our financial crises. If so, what can the West do, if anything, to regain it's leadership role?

We seem, hopefully, to have avoided reliving the 1930s. However, do you think the 00s are starting to look more like, mimic, the 70s -- coming out of a prolonged, unpopular war(s), high oil prices, inflation?

i'm wondering how the average joe can become even a micro-mini rothschild in this day and age. seems all investments are speculative and oportunities limited. what do you think? thanks

In May you commented that the Obama administration's policies are simultaneously Keynesian and monetarist, and you were critisized for you statements. Since I agree with you, my question is: Besides higher interest rates what are the implications for these policies?Gary

There used to be usury laws. But credit cards have in recent years charged over 20% under certain circumstances. Isn't the consumer protected by usury laws from excessive rates of interest?

How would you suggest someone position their assets to best be protected from an Argentina style meltdown in the US?

Given the rise and fall of societies throughout time, what do you suppose is the natural life expectancy of a consumer driven capitalistic democracy based on an indebted monetary system?

Given the high and growing levels of government intervention in the financial and health sectors with the use of bailout money at such enormous levels, what do you see as the most probable futures of (1) the entrepreneurs and (2) the United States?

Thank you.

John W Bethea, Jr

Can you elaborate on the construction, existense and purpose of derivatives as well as their role in the current credit crisis and their potential to destabilize the economic system were critical corporations allowed to fail thus exposing the notional value of these contracts?

Trust = 1/Risk, There is a reciprocal relationship between trust and risk. Wouldn't it be logical to outlaw the buying and selling of derivatives and other financial vehicles ? What is your prediction on the repeat of this recession ? Mine is 80 years ? Bring back regulations ! ?

Niall, I agree with you that 'certain leaders' of China may consider de-linking its currency's value from the US Dollar (whether or not they prevail is another question);

If this happened in a flash-cut tomorrow,
Please elaborate on what, at a minimum, would happen to the Dollar, USA's role in the global economy, energy supply markets, major trading arrangements, and other relevant areas (everything else being equal, for the sake of discussion).

Given the globalization of EVERYTHING - not merely money markets and corporate financial structures but communications, as well as the interdependent marketing relationships between developed and developing countries (i.e. China/The U.S.) is it not time for a serious political/philosophical review of America's traditional concepts of government and economy?

What event or events would have to take place to transform the Federal Reserve's monetary base -which is at hisorically high levels - into serious inflation?

Also, how close are we to the tipping point with respect to the US government's spending and debt as a percentage of GDP? How serious is this issue?

Will regulators, who are lower paid, likely less-educated and often broadly trained - rarely the cream of the crop, ever be able to effectively regulate the highly educated, market-focused and much better paid bankers who are indeed the cream of the crop? Also, what will be an effective remedy for rating agencies (S&P, Moody's) and financial institutions who grade their competitors driving market movements on stocks and industries? How can independence be established?

Why when my T. Rowe Price IRA diversified mutual fund holdings fell nearly 50% and I needed to protect my investments from further losses, no one at T. Rowe Price was able to tell me which holdings to keep and which to sell? I had International Stock, Capital Appreciation, New Era, New Horizons, and High Yield. Which two should I have kept?

EXACTLY WHAT IS THE FEDERAL RESERVE ? DOES IT PRINT MONEY. WHY DOES IT EXIST?
SO CONFUSING.
THANKS

Are you seeing changes in regulation policy and legislation in the US and elsewhere that will be comprehensive enough and strong enough to prevent a similar type of global economic meltdown like we just experienced?

Of the events and bubbles that you described in the Ascent of Money, which experienced economy wide asset price deflation between the peak and the economy wide inflation that ensued afterward? (the 1930s Great Depression being an almost textbook case)

Professor Ferguson,
As more and more governments, companies, and individuals look forward to the future with an eye on sustainable practices, could you speak to the concept of sustainable fiscal policy? I am wondering, specifically, about the impact Austrian School theory and Ludwig von Mises could have on cooling the unsustainable rate of consumption in developed nations. In what regard is von Mises held, generally, in the academic and governmental world? Crackpot? Visionary? Pragmatist? And lastly, is there even a reasonable way to implement Austrian theories without occasioning massive unrest (at least in America), given how far down the Keynesian road we have traveled? Thanks for your time and consideration.

Professor: Seems the same pack of legislators and regulators have been calling the economic shots over the last quarter century with little to show for it except for more debt and less freedom. And their favorite economic advisors come from a limited roster. What can be done to begin our local and federal officials on the path to economic literacy, and (aside from your books) how can the economic education of the electorate be improved?

Bill K

When is a good time to transfer my 401k to an IRA? i am asking because the 40K Is doing fine right now and i am afraid i am disturbing the trend if i do the transfer now. thank you.

What role will gold/commodities play in the future, if any, as hedges for future US dollar inflation?How will purchasing power, across the globe be affected?

Some have advocated the introduction of a competitive currency to the dollar. What is your stance on advocates who have supported more closer monitoring of the Federal Reserve or even more radically the dissolution of the federal reserve?

Hi, I am reading your book and I find it fascinating. Amazing how all these powers end up in the same way, from Spain to Venice to Florence, the same story seems to be repeating. Do you view the US to be next in line? And do you see the possibility of a dictatorial outcome emerging out of the decline and disintegration of the American power similar to what happened in Germany?

A college education costs many multiples of the cost from 50 years ago. How much of the increase is a result of the Fed printing dollars without any backing?

My fear is that we have nearly bankrupted our country's wealth addressing the "crisis" yet there is no indication that our efforts amount to anything more than a temporary, even cosmetic, solution. If it turns out that our lack of will power in applying substantive solutions to the underlying problems results in a resumption of the downturn...how much trouble could we be in? Is it possible that we'd bring the rest of the world down with us?

I have heard that the Great Depression (in America) of the 1930's was caused by the British who raised interest rates which caused capital to flow out of America. Does this argument have any merit? If so, could that action be considered a primary cause or just one of a collection of causes? What was the motivation of the British and were they aware of the effect that it would have on America?

If there will any posibility china & Japan dump US Dollar & buy other currency ?
Is there any chance Oil or another comodity trade in other currency?

What advice do you have for investors in their late 20's? I am currently investing in my employers 401K as well as a Roth IRA. Do you suggest any other investment vehicles for retirement?

Hi,
I was wondering what your outlook was for Japanese equities. Japan's stock market
has been in a bear market the last 20 years. Stocks there seem really quite cheap.
Is it a good time to invest and if so, what areas do you favor?

What would it take to absorb the excess commercial real estate capacity that currently exists, and what scenarios do you think are probable?

Dear Professor Niall Ferguson, I am thinking of changing my share portfolio to virtually all mining shares, since I think the commodity prices will rise. Should I have a a larger weighting in Silver, Platinum, Gold ( Fresnillo, Lonmin, Rangold Resources) mining companies, than the normal Copper, steel, etc other industrial metals (BHPBillton, ENRC, KAZ, ANTO, Vedenta (exposed to Indian martket) mining companies? Or are all these mining companies listed on London Stock Exchange a good way to protect against the impending inflation? Is this a good strategy against inflation or should I buy a bigger house. However, if there is a chance of a double dip recession, should I invest in mining companies (they will not be effected by double dip recession for the UK?, since exposure to other counntries in east expanding), then when and if houses price drop, then buy a larger house.

Professor - do you think it is a good idea invest in Mining companies now.
- do you think we will have inflation
- what should we do to protect against inflation, bigger house, commodity stocks (ones
exposed to Eastern market?-
- will the Dollar get weaker, hence commodities rise
can Bernake do anything to stop Dollar falling, does he want to stop the decline, can he
do something to stop this (now or later)?

I would be very grateful for your thoughts, insights to the above points.

Best Regards,

satclaire@googlemail.com

What do you think of the rise of online barter activity? Is it a natural part of eCommerce, or will it subside when the recession goes away?

Do you believe the US must demonstrate some fiscal responsibility in the near term to retain our position in the world financial community? If so, what changes do you believe are needed to accomplish this?

what do you think GM's position will be within the next Couple years if not for the next 5 years? Will economy help GM or the GM will help economy?

Hi im a student from the UK and i wanted to know how would you evaluate the argument that the current economic recession is due to the lack of corporate governance in the financial sector???

Hi Dr. Ferguson, could you please comment on the status of the US dollar as the world's reserve currency? Do you see it being replaced? Thanks, Brian Craig.

Was Bush's attack on IRAQ over Weapons of Mass Destruction or was it to get control of Iraq's OIL?

Mr. Ferguson, Do you believe that the US government will have to prohibit the private ownership of gold?

I like making cash transactions because it keeps me abreast of my spending patterns and increases my privacy. Do you see other advantages to using cash, assuming a person already has excellent credit? How about when you substitute the term debit card for cash in that question? Thanks!

Do you think the USA political system can avoid forcing our nation in bankrupty or an inability to
honor our entitlement programs?

Why not abolish the federal reserve ?

Can you connect the dots for me and many American Investors with regard to the following assets classes which seemed to be linked in the past 3-6 months in a relationship: falling dollar,risng Euro, rising stock market and rising gold prices? and Does this interrelationship portend the demise to the USD as the world's reserve currency? and Is it possile that gold ,or gold-backed paper money, can become the new reserve currency? Also, what is your estimate of the time when interest rates on the 10yr US Treasury Bond may hit 4.5-5.5%. Lastly, when should the US and/or the global economy expext another asset bubble? When and which assets? (Note: my 29 year old son James produced "House of Cards" for CNBC [currently nominated for and Emmy] and ever since I have had the pleasure of trying to keep my economic and investor knowledge and understanding up to his level instead of vica-versa, a great feeling and a great challenge) Many thanks. Richard Jacoby, Rye Brook, NY

Given the world economic situation; how would you suggest that one allocate their assets--percentages and in what asset classes

Thank you

What would you advise to invest your money in if you are retiring. I am sixty six, will be selling my house in the near future, and would like to get some income from the proceeds of my house. I would think possibly 200 or 300 thousand dollars. I do not have have a retirement fund, and my only source of income would be the social security and whatever I could get from the investment. Needless to say, it would have to be a very secure fund.
Thanks!

Mr Ferguson, what economic fallout do you feel could result from an increase in world population and affluence.
Thank you

What do you think about To Roth or not to Roth for the new regulation?

The US economy, and to a lesser extent, the global economy is fundamentally dependent on the issuance of credit by banks. So long as these banks / lenders are able to leverage funds on hand to the extent that they do (at one point, 9 to 1 until this was increased), how long is such an economy sustainable. When do we fall off the cliff, or have we already begun?

The US economy, and to a lesser extent, the global economy is fundamentally dependent on the issuance of credit by banks. So long as these banks / lenders are able to leverage funds on hand to the extent that they do (at one point, 9 to 1 until this was increased), how long is such an economy sustainable. When do we fall off the cliff, or have we already begun?

Are big banks truthfully too big to fail?

Dear Mr. Ferguson--I have not read your book and you can refer me to it if it addresses my question. Have economists basically dropped the ball by not critically examining the use of derivative trading and relating it to a practical/functional understanding of risk? Since large US financial institutions have been able to substitute rational assessment with "OK--we have a mathematical model we can't understand but it must be okay because it is quantified"--I have no confidence in the financial system generally. To "hedge" away all risk seems to disconnect the funding stream from actual income generation potential and become a mindless, expensive and very destructive pasttime. Like a few others have asked here before me, how do you understand the role of derivatives in a "healthy" economic system? Do they have to be outlawed, minimum regulated or can they if properly used be beneficial?

Sir: Do you think the US will ever balance the budget,,How??

What's your opinion re: the growth prospects of US companies vs. developing countries (BRIC) in the medium and long term? As an investment strategy, would it make more sense to invest in developing countries or US-based multinationals if more growth were expected in foreign economies?

I would like to get your impressions on the financial and energy sectors in coming years. In terms of energy, I'm curious on your thoughts re: the 'green revolution' and also natural gas as a potential bridge fuel.

What do you advise investors to do? Should we have more international exposure?

Should the US be afraid that China will take over the world economy and force us all to work in their manufactories?

Your Harvard colleague Elizabeth Warren will have a report out in the next couple weeks in her role as head of the Congressional oversight committee on TARP. She has gone head to head with Treasury in her role already. Do you think she will be able to get new rules on the books that would enforce banks debts being paid on a current basis--and let the markets determine what happens and get rid of too big to fail?

As a young investor, 24 years, what would be the best advice you can give me in regards to saving for retirement?

Given the world economic situation; how would you suggest that one allocate their assets--percentages and in what asset classes

Thank you

Where do you advise investors to concentrate their investments for the next 5 years?

Please discuss currency risk when investing in international/global markets since upside potential is mind boggling on the long term future. What percentages would you invest? 10%, 25% etc. Is the US dollar being replaced by a blended currency of some sort inevitable in the near future?

.A comment, not a question. You have made it cool to be smart. This was very informative and interesting. Thank you.
Dany

Mr. Ferguson--You raise a good point about having to converse with the camera--bravo, in any case--it is absolutely refreshing that you are in fact not an actor but clearly speaking your learned mind and NOT reading cue cards! I really wish people in a position to do something would listen to you.

What would it take for the US to reassert it's financial dominance? Is it even possible for one nation to hold that sort of economic power in this new age of globalization marked by the rise of Asia?

6 P.M. EST is 9 P.M. PT. Why has the program finished by 8:42 P.M. in California? Wednesday is the 25th, not the 24th. Will the program be repeated tomorrow the 25? What time will it be in California?