This might have been his best lesson though.
From our liveblog:
Whenever I tell people to keep a stock of currency at home they ask me… what if someone steals it?
I tell them to stop by the supermarket, grab three boxes of cheerios. When you get home dump the cheerios, put the money in, and put it in the pantry.
No one is going to steal your cheerios. If you want to diversify, get other brands too.
Also… someone asked him how to hedge against a nuclear bomb falling on Los Angeles.
He responded: Sometimes you’re just screwed.
This is a pretty key point, even in scenarios that are less extreme.
Think back to the last debt ceiling standoff. It was obvious that the hit to confidence and the attendant economic slowdown would mean that Treasuries were the place to be. But what, you might ask, would be good about holding Treasuries if the US defaulted? Well if the US defaulted, “you’re just screwed” so it’s not even worth protecting against.