From Bill Bonner, Chairman, Bonner & Partners:

In an extraordinary turn of events, last week we were contacted by our local bankers.

Since we were turned down for a mortgage in 1982 (our business finances were thought to be “too shaky”), we have had little truck with them.

We pay cash. They mind their own business.

But for the first time we can recall, not just one but three suits came to visit. Personable and intelligent, they were worried when they saw how much cash we were keeping on hand.

No kidding. They came to visit to propose ways we could “put it to use.”

Too Much Cash?

“You really should take some of that cash and invest it in municipal bonds” was the motion on the table.

“What if the municipalities can’t pay?” we asked.

“Don’t worry about that. Historically, the odds of default are extremely remote,” one of them…