Are you blaming the current situation on Reaganomics? I think Reagan made us feel good as a country—and that is wonderful— but, in terms of economics, he was
the biggest disaster that ever struck. I think he basically hoodwinked us by promising to cut the deficit, and then
went on the biggest spending binge in the history of this country. I don't think a Democrat could have gotten away
with it, because everyone would have been very vigilant about a $150-180 billion deficit.
Do you see any way in which we can solve our current problems before we go into a deep recession, or even depression? That is what scares me so much. I don't see any blueprint out of our current dilemma. Maybe there are
macroeconomic forces at work that are part of a larger super cycle that we don't have any control over. Perhaps we
are simply responding to the same type of cycles that most advanced civilizations fell prey to, whether it was the
Romans, sixteenth-century Spain, eighteenth-century France, or nineteenth-century Britain. I think that we are going
to be in for a period of pain. We are going to relearn what financial discipline is all about.
Do you use trading systems at all? We have tested every system under the sun and, amazingly, we have found one that actually works well. It is
a very good system, but for obvious reasons, I can't tell you much more about it.
What type of realm does it fall into: contrarian? trend following? Trend following. The basic premise of the system is that markets move sharply when they move. If there is a
sudden range expansion in a market that has been trading narrowly, human nature is to try to fade that price move.
When you get a range expansion, the market is sending you a very loud, clear signal that the market is getting ready
to move in the direction of that expansion.
Are you trading a portion of your funds on that system at the present time? We just started trading the system about six months ago, and so far it is doing very well.
