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

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 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.

What is your asset allocation for 2010-2012?

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?

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?

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.

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.

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?

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

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

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?

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

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).

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?

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" ?

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?

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?

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?

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 ! ?

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?

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.

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?

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.

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?