Dave Ramsey is an evil idiot and loud mouth bulley. (Part 1)
I have disliked Ramsey awhile. Nowthis charalatan attacks Peter Schiff. PS is a national hero, who protected millions from debt slavery and the melt-down.
He made his money the modern American way, selling BS financial advice to desperate financially illertate idiots.
Gary North in nicer, more Christian terms takes this guy down:
How Dave Ramsey Made $55 Million by Being Good on Personal Debt, Naive on Business Debt, Lousy on Investing, and a Loudmouth Bully.
I have kept my mouth closed on Dave Ramsey for years, but no longer. I have finally had enough.
In a January 23, 2008 phone call, he excoriated Peter Schiff's book, Crash Proof, after telling the caller that he had never heard of the book or Schiff.
This was unconscionable. The rule is simple: if you attack a book, read it first.
The caller, a young woman, said that her father was worried about a coming stock market crash. He was buying gold and foreign currencies. Ramsey said this advice was "absolutely ludicrous."
On that day, the Dow was at 12,270. Gold was at $880.25.
Yesterday, the Dow closed at 11,240. Gold closed $1,884.50.
You tell me: Ramsey or Schiff?
But it gets worse. Ramsey's off-microphone research man told Ramsey that Peter Schiff is Irwin Schiff's son. Ramsey then went into a tirade over the father's tax protest advice. He then said this: "This kid's dad is a nutburger, which probably means the kid is a nutburger."
No, it means that Dave Ramsey is a disgrace. He verbally tarred and feathered Peter Schiff for a position Schiff personally opposes: the tax revolt.
Here is the video (hat tip to Gary North for the write up and find)
Charlatan is as charlatan does.
The phone call came in January 2008. Remember what happened next -- an event that Schiff had called perfectly? There was the worst stock market meltdown in modern times. The entire financial structure was changed. The government nationalized Fannie Mae and Freddy Mac. The Federal Reserve gave secret loans of $1.2 trillion to big banks.
Was the advice that the woman's father received from Schiff accurate? Yes. Was the advice from Ramsey accurate? No. Yet he came on like a know-it-all expert. He showed her!
Then the stock market showed him: the worst crash since 1932. Unemployment remains above 9%.
In Texas, they would say that Dave Ramsey is all hat and no cattle. They would be wrong. He is all hat and diseased cattle.
He tells people to buy no-load stock mutual funds.The longer your money stays invested, the more it can grow. Over the last 30 years, the S&P 500, a standard measurement of stock market performance, has averaged a 12% growth rate.
Conclusion:Put your retirement money in growth stock mutual funds with a track record of at least five years of consistent returns (12% average). Divide your portfolio equally among growth, growth and income, international and aggressive growth funds.
He posted this on March 22, 2010. On that day, the S&P 500 closed at 1166. Ten years earlier -- March 22, 2000 -- the index was at exactly 1500.
Let's see: that's a loss of 22%.
But wait! There's more!
Using the inflation calculator of the U.S. Bureau of Labor Statistics, we learn that the dollar lost over 22% of its purchasing power: http://bit.ly/BLScalc.
So, combining these figures, the investor who bought a no-load index fund of the S&P 500 and held it for a decade lost 40% of this investment.
Ramsey never discusses the retirement-destroying rate of return that American stocks have produced since early 2000. It has been 11 years of false hopes.
Dave Ramsey is a purveyor of false hope. He never changes. He never learns.
THe rest is here: