By MARTIN CRUTSINGER, AP Economics Writer 1 hour, 12 minutes ago
The $100 bill represents more than 70 percent of the $776 billion in currency in circulation, two-thirds of which is held OVERSEAS.
All the new security devices have added to the complexity of making money. The government churns out 38 million notes each business day with a face value of $750 million at two facilities — one in Washington, D.C., and the newest one in Fort Worth, Texas.
This country deserves to have our rear end whacked by the Asian countries.
After all, we did it to the British.
Once we wake up out of our stupor, we will once again learn to take responsibility for our own actions and re-learn how to produce things for ourselves by our own people.
<< <i>Money markets funds are not going belly up, PERIOD. >>
I don't think money markets will go belly up but you could lose 10cents on the dollar. >>
Extremely unlikely for 99.9999% of funds. If you are nervous about your money market just look at their holdings. These are highly regulated vehicles. If you are still nervous, then look for your state specific insured muni fund.
I also wouldnt worry about the Asians not buying our debt. Where are they going to go, Japan? and get 1.5%. Europe? and deal with an economy and society that is trying to integrate 100's of millions of Eastern Bloc and Russian citizens. Africa? Antartica? China?, and deal with a govt that could confiscate your money at any time.
They will continue to buy US debt and they will like it.
An ounce of gold still weighs the same since I joined the boards. In three days I will predict the newest coin offered from the U.S. Mint will have the best design since ..... The classic liberty head. I also predict that one proof and one uncirculated coin will weigh 1 ounce together. They will be revered like an ancient chinese proverb someday.
What happens to municipalities when homeowners revolt against the current assessments on their homes? Do all those projects get put on hold? Or do they just raise the millage rates to make up the difference? Its gonna be hard to force higher tax rates on someone whose house is the same value as it was 5 years ago.
"They will continue to buy US debt and they will like it."
Wrong! The Chinese will LOVE having US debt. They have to push all that cheap crap off onto someone that can afford it and we seem to be the best candidates. I doubt the South Americans are going to be buying much of that stuff nor the Indians, nor the Russians.
The public sector folk will be feeling the pain come tax time. Valuations will be down, expansion plans will be tabled or have the scope shortened, income for salaries/merit increases/cola will be under projections...the '05-'06 proposed budgets for roads, drainage, parks, infrasturcture will become less optimistic resulting in projects being delayed or deleted. It's the trickle down from the housing market to the public sector. This is going to go on for a while, at least a couple of years because public budgets are done years in advance of actually commissioning a project. On the other hand, public construction bonds may become very highly sought after investments...safe haven in heavy weather. So, it may all work out ok for public improvements.
Well I guess I should have followed Cohodks advice, and sold my oil SPDR’S, I am back to break even. This is truly amazing, over 400 million shares have been sold in just two days in this fund.
Besides the fact that going from 12.6% to 12.3% after years of increases (even under Slick Willy) is hardly significant, nobody seems alarmed that 36.5 million Americans are dirt poor despite working like slaves. Where's that guy from Singapore making $6K who's able to save $1,500 of it every year? That's better than making $20,000 a year here and ending up owing people money! You have to factor in the cost of living which is simply absurd in America. Cheaper housing is a good start towards rectifying the situation, despite what all the blubbering fat cats on CNBC keep saying. Like I should care if their 10 million dollar home loses half its value. Guess what? I don't and it would be GOOD for the economy too. 36.5 million consumers would have more to spend in stores instead of wasting it on exorbitant rent. It's always the end of the world when the filthy stinking rich lose money but they just laugh like nothing's wrong as everyone else gets poorer and poorer. [end tirade]
Well Crito, I'm not sure I agree with all of your concern
First off no matter what anyone does there will always be poor people, poverty is more of a state of mind than a financial condition and I highly doubt that the people in that number are members of the working class. Actually. probably 30-40% of the population contributes absolutely nothing and is living off the system. I won't argue that many work hard and have nothing for it but many more do nothing and seem to think that food, shelter and medical insurance was guaranteed in the Constitution along with life, liberty and pursuit of happiness.
Unfortunately our creator chose to link effort with survival, something that we in the US seem to have forgotten. He who don’t work don’t eat was not a man made reality but is part of the way life was created. That applies throughout history as well as in other nations of the world today where a poverty rate of less than 50% would be considered a “significant” accomplishment.
This is not Utopia. We cannot expect that every person who crosses the border or who had the benefit of being born here should be guaranteed prosperity that 99% of the world throughout history never had. Those are harsh facts and while the government will spend us all into poverty trying to change it the fact remains that there will still be poor people 300 years from now.
<< <i>Well I guess I should have followed Cohodks advice, and sold my oil SPDR’S, I am back to break even. This is truly amazing, over 400 million shares have been sold in just two days in this fund. >>
Right now commodities are trading in almost lock-step with the stock market, and both are being dominated by concerns about future economic growth. The commodities markets aren't much concerned at the moment with inflation or the dollar, both of which still look longer-term bullish for oil, gold, silver and many other commodities. But the market is obsessed with shorter-term reduced demand based on perceived future economic weakness.
Besides the fact that going from 12.6% to 12.3% after years of increases (even under Slick Willy) is hardly significant, nobody seems alarmed that 36.5 million Americans are dirt poor despite working like slaves. Where's that guy from Singapore making $6K who's able to save $1,500 of it every year? That's better than making $20,000 a year here and ending up owing people money! You have to factor in the cost of living which is simply absurd in America. Cheaper housing is a good start towards rectifying the situation, despite what all the blubbering fat cats on CNBC keep saying. Like I should care if their 10 million dollar home loses half its value. Guess what? I don't and it would be GOOD for the economy too. 36.5 million consumers would have more to spend in stores instead of wasting it on exorbitant rent. It's always the end of the world when the filthy stinking rich lose money but they just laugh like nothing's wrong as everyone else gets poorer and poorer. [end tirade]
I feel better now for some reason. >>
I agree that no one who works for a living should be poor. A couple who have to hold six jobs running all over the city to get to work because greedy employers won't give them 40 hours work is an abomination. Many people do spend beyond their means and get into trouble where there was no need but it's hard to restrain your spending when you see your neighbors throwing money away. Just the necessities of life can get pretty pricey when your income is based on driving from minimum wage job to minimum wage job.
<< <i>Well I guess I should have followed Cohodks advice, and sold my oil SPDR’S, I am back to break even. This is truly amazing, over 400 million shares have been sold in just two days in this fund. >>
Right now commodities are trading in almost lock-step with the stock market, and both are being dominated by concerns about future economic growth. The commodities markets aren't much concerned at the moment with inflation or the dollar, both of which still look longer-term bullish for oil, gold, silver and many other commodities. But the market is obsessed with shorter-term reduced demand based on perceived future economic weakness. >>
Question for you Ziggy.........are the prospects for global growth any greater now than they were 10 years ago? I heard people talking about China this and India that, Brazil is in the sweet spot and Russia sits on huge natural reserves back in 1997. Then oil was was trading in the mid 30s, up from the low teens a few years earlier. The global growth engine was humming along, they said. Well, in the next year oil fell to as low as $12 a barrel. My point being that yes, the potential for growth is as strong as ever, but markets look at today and tomorrow, not 5 years from now. If you want to be an above average investor, then look at what is happening today, not what may happen next year-for that, no one knows.
<< <i>First off no matter what anyone does there will always be poor people, poverty is more of a state of mind than a financial condition and I highly doubt that the people in that number are members of the working class. Actually. probably 30-40% of the population contributes absolutely nothing and is living off the system. >>
Quite frankly, that's hogwash. But don't take my word for it, take Warren Buffett's word for it:
At a Hillary Clinton fund-raiser in New York last month, Warren Buffett, no stranger to wealth, told an audience filled with bankers and real-estate developers the system was, in effect, rigged. "This is what Congress in its wisdom did: the 400 of us [here] pay a lower part of our income in taxes than our receptionists do, or our cleaning ladies, for that matter." Buffett (who is a director of NEWSWEEK's parent, The Washington Post Company) offered a million dollars to any fellow magnate who could prove he had higher tax rates than his secretary.
<< <i>My point being that yes, the potential for growth is as strong as ever, but markets look at today and tomorrow, not 5 years from now. If you want to be an above average investor, then look at what is happening today, not what may happen next year-for that, no one knows. >>
Well, yes, that was partially my point. The market is a forward-looking creature, but discounts the long term in favor of the short term. This is why a stock can get pummeled for doing the right things long term which weaken *this quarter* and its earnings. (These are what I call "buying opportunities.") So even as the "market" (which includes almost everything now except cash and Treasuries) collectively moves down in lock step, some of these participants in the downward move still seem to have solid long-term prospects. So if you aren't looking for a quick flip, these might be good to nibble on now.
Many institutions and mutual funds have to report what they hold every quarter and they don't want to be seen as holding a stock which has been a "clunker" in the recent past, too. Like corporations looking only at this quarter's results at the expense of the long term, they may be making the move which spares them the most pain this quarter, but possibly at a steep long-term price. We as individual investors have no such need to obsess about next quarter or even next year if we follow a sound, disciplined and diversified approach that we plan to stick with for 20 years or more. Because barring the apocalyptic scenario, in 20 years with a well-built and diversified portfolio, you'll be fine. In fact, if you periodically overweight stuff that has been recently weak by selling recently strong performing asset classes, you can do even better.
Wal-Mart Stores Inc. has avoided millions of dollars in state taxes by paying rent on 87 Wisconsin properties in a way that the state Department of Revenue calls an "abuse and distortion of income."
First sentence of Bernanke's speech on Friday : Alan really F'd things up.
The problem with capitalism is that the smart and/or lucky people get very wealthy and the average/unlucky are broke. The trouble with socialism is there is little incentive to work or take risks.
In Europe and some other places they are trying a compromise between the two. I don't have any answers but I do know the U.S. has a real problem with the wealth gap and that socialism will never work no matter how well it is managed.
As far as the value of the U.S. dollar goes we know ultimately it will become worthless as do all fiat currencies. What is happening right now is the countries like China, India, Russia, and the Gulf states that are receiving billions of dollars each month do not want to sell the dollars because their currencies would rise dramatically so they just create more of their currency and buy U.S. Treasuries with the dollars. Lately they have been creating sovereign funds to buy U.S. assets with some of their dollars. The number of dollars these countries have is staggering. So it might not be a good idea to own any currency although some people like the Yen because so many people borrowed Yen at very low rates to invest elsewhere. So how about gold ? It seems like it should be a lot higher and I think it will be in the next 3-5 years but of course I don't know that. In fact I believe it is impossible to predict anything. Since I live in the U.S. and need dollars to live I've concluded the best thing I can do is get as many dollars as I can and hope I can maintain my standard of living. I have been selling my coins.
It has nothing to do with intelligence or luck. It has a lot to do with politics though. Of course, if I were George Bush I'd have to believe I was brilliant and deserved everything I had gotten in life. What's the alternative?
<< <i>The problem with capitalism is that the smart and/or lucky people get very wealthy and the average/unlucky are broke. >>
The smart and/or lucky people tend to have had the benefit of having gotten the government on their side as a partner in their quest for wealth. That's not capitalism's fault.
I'd say it is capitalism's fault. In a true free market economy there's always a maximum size a corporation can become before it can no longer compete. Economies of scale only work until you reach the point of diminishing returns, then diseconomies of scale, like huge bureaucracies, hinder further growth. Restricting access to capital and creating regulatory/legal barriers to entry is the only way monopolies and oligopolies can exist in a "free" market economy. Capitalism allows big corps to grow "inorganically" (M&A) while their small competitors struggle to grow "organically" (ramping up production with limited funds). Capitalism is what enables the concentration of wealth and power in America.
“At a Hillary Clinton fund-raiser in New York last month, Warren Buffett, no stranger to wealth, told an audience filled with bankers and real-estate developers the system was, in effect, rigged.”
Coyn, Of course is correct in his assessment, and regardless of how lucky, tricky, or brilliant Mr. Buffet is in business he needs a new calculator. If there are 36.5 million poor in this country, and you took the 1.25 trillion dollars held by the wealthiest Americans and divided it among all of them, how long would the money last them? Forget about taxes, just confiscate all the money the rich have made in a lifetime, and turn it over.
In the last 4 decades trillions and trillions of dollars have been spent in this country to eliminate poverty and what is the effect? Hardly anything.
“ Unfortunately our creator chose to link effort with survival, something that we in the US seem to have forgotten.”
I won’t say here that Mr. Buffet and the entire group of folks that think they can change the planet in a permanent way are Godless fools, but then again, they seem to be under the illusion that they are running things here, and can make a difference.
In reality they are running nothing, and the Creator will decide, what goes on here, who will be poor, who will be rich, etc.etc.
Mankind in the end is a very pathetic creature, who has for 10,000 years been trying to solve the problems of war, poverty, illness, etc. quite naturally none of these problems ever get solved as they are NOT in the design of the Creator.
This little tiny planet out in the back water of the Universe was never meant to be our permanent home, and all this effort to make it a permanent home is an absolute waste of time. We come here to play the GAME of life, to learn certain lessons, experience certain things, and then to leave as empty handed as when we came, and NOTHING, I repeat NOTHING, here ever changes!
From a personal perspective I really see nothing wrong with making comments about how the world is changing, and even pretending that we can play the game of life, and make small differences, but it is very foolish to think that we are in control.
Forbes: “A nine-figure fortune won’t get you much mention these days, at least not here. This year, for the first time, everyone in The Forbes 400 has at least $1 billion. The collective net worth of the nation’s wealthiest climbed $120 billion, to $1.25 trillion.”
And it's not just capital from bankers, it also the capital market system. You think you can compete with Google at this point? Even if you wrote the best search engine algorithm on the face of the planet you couldn't! Google is using all the capital they raised from selling stock to greedy suckers to cement their dominant market position. They're buying blocks of the wireless spectrum from the FCC. They're buying little companies who create web office apps. They're even thinking of releasing their own Linux distribution. The only thing they aren't doing is growing their search engine business.
"In the last 4 decades trillions and trillions of dollars have been spent in this country to eliminate poverty and what is the effect? Hardly anything."
<< <i>"In the last 4 decades trillions and trillions of dollars have been spent in this country to eliminate poverty and what is the effect? Hardly anything." >>
What people don't realize is that no matter what, there always has to be poor people because wealth and poor are relative. The poor will always do the "lesser" jobs - those jobs won't go away and someone has to do them. On the same token, you're not going to pay (for example) a fast food worker the same as you would a skilled worker. This will never change.
Poor people in this country have it damn good compared to poor in other countries. Most of our poor people have running water and color TV!
Perhaps someone needs to look at what poor means in other countries and then define what poverty is for the US relative to that definition.
So does this mean that the taxpayers are being sold down the river once again? Is this another Government bail out program? Aren’t all these FHA loans insured by the taxpayers?
Aug. 31 (Bloomberg) -- President George W. Bush will today announce steps the administration says will help people with sub-prime mortgages keep their homes.
Bush will let the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, guarantee loans for delinquent borrowers, allowing them to avoid foreclosure and refinance at more favorable rates, according to an administration official.
The change would affect borrowers who are at least 90 days behind in payments and let them stay in their homes, the official said on condition of anonymity. Bush, in a statement in the White House Rose Garden, also will back proposals to provide tax relief for homeowners who refinance.
Tighter credit and higher borrowing costs threaten the housing market, which has been an engine of U.S. economic growth. Democrats in Congress and the party's presidential candidates have criticized Bush for not taking action to prevent the spread of foreclosures.”
I'd have no problem with a mortgage bailout if the future profit from their home sale was Taxable. As it is, they get paid to not foreclose and then someday they keep all the profit for themselves. But... we do get the privilege of living next door and paying the bill.
Nothing like rewarding people for being stupid. We were suckered into an ARM when we bought our house a few years ago. But when it jumped after the first year we were smart enough to bite the bullet and refinance at a fixed rate. I guess we should have bought a bigger house and let the feds save us.
Could it be that Ben and Bush have cooked something up?
This is pretty far fetched but what if Ben went to Bush and said, “ Listen George there is no way we can lower this rate to where the Fat Cats and the media will be happy. Remember all this sub-prime stuff is really a smoke screen for Credit Derivatives, and the sub-prime stuff is only a small part of that. Also, if we drop the rates very much NO more rollovers of the T-Bills. In addition we have sold billions in T-Bills the last few weeks with everyone running for cover, and all those folks will just sell out and get back in the stock market. So lets do this, make an announcement about FHA working through the problem, and throw it in the lap of congress, and then I do not have to do much. Also I might warn you that the British, and Euro guys will be paying more interest than us if we cut, and the dollar will drop like a rock.”
Lets see next month if the inflation talk gets back in the Fed minutes and the cut is only a quarter?
I was willing to give Gorgie the benefit of the doubt on foreign policy, but he has now lost all my respect. His knowing this will surely keep him up tonight.
I've seen a number of articles recently about home owners (primary residence or 2nd and 3rd homes) walking away from them if they are upside-down on them. Now wasn't a new bankruptcy law passed in the past year that was going to prevent Joe Public from walking away from excessive home and credit card debt as easily in the past? The cc and home lenders saw this day coming so lobbied congress to pass a law to make them pay, forever. So my question is, why does every article I read only mention people walking away with no pain from their debts? Did I miss something on the new and tighter bankruptcy laws? Or do those laws allow an exception if you are upside-down on your loans and have zero other assets?
> "In the last 4 decades trillions and trillions of dollars have been spent in this country to eliminate poverty and what is the effect? Hardly anything."
Only from the results of a controlled experiment, eliminating or accounting for all the variables, could this statement be made.
It is too bad that so many emotion-laden and vapid Talking Points are promulgated and believed as "The Truth!"
Kinda like giving the Romans bread and circuses to keep them docile.
<< <i>I've seen a number of articles recently about home owners (primary residence or 2nd and 3rd homes) walking away from them if they are upside-down on them. Now wasn't a new bankruptcy law passed in the past year that was going to prevent Joe Public from walking away from excessive home and credit card debt as easily in the past? The cc and home lenders saw this day coming so lobbied congress to pass a law to make them pay, forever. So my question is, why does every article I read only mention people walking away with no pain from their debts? Did I miss something on the new and tighter bankruptcy laws? Or do those laws allow an exception if you are upside-down on your loans and have zero other assets?
roadrunner >>
can't specifically answer your question, yet
a lot of banks own those homes and can't or won't sell at a loss either.
an interesting article in the W/E WSJ about CA home prices/ mortgages and the US economy.
Comments
The $100 bill represents more than 70 percent of the $776 billion in currency in circulation, two-thirds of which is held OVERSEAS.
All the new security devices have added to the complexity of making money. The government churns out 38 million notes each business day with a face value of $750 million at two facilities — one in Washington, D.C., and the newest one in Fort Worth, Texas.
Knowledge is the enemy of fear
After all, we did it to the British.
Once we wake up out of our stupor, we will once again learn to take responsibility for our own actions and re-learn how to produce things for ourselves by our own people.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>Money markets funds are not going belly up, PERIOD. >>
I don't think money markets will go belly up but you could lose 10cents on the dollar.
<< <i>
<< <i>Money markets funds are not going belly up, PERIOD. >>
I don't think money markets will go belly up but you could lose 10cents on the dollar. >>
Extremely unlikely for 99.9999% of funds. If you are nervous about your money market just look at their holdings. These are highly regulated vehicles. If you are still nervous, then look for your state specific insured muni fund.
I also wouldnt worry about the Asians not buying our debt. Where are they going to go, Japan? and get 1.5%. Europe? and deal with an economy and society that is trying to integrate 100's of millions of Eastern Bloc and Russian citizens. Africa? Antartica? China?, and deal with a govt that could confiscate your money at any time.
They will continue to buy US debt and they will like it.
Knowledge is the enemy of fear
An ounce of gold still weighs the same since I joined the boards. In three days I will predict the newest coin offered from the U.S. Mint will have the best design since .....
The classic liberty head.
I also predict that one proof and one uncirculated coin will weigh 1 ounce together.
They will be revered like an ancient chinese proverb someday.
Knowledge is the enemy of fear
Wrong! The Chinese will LOVE having US debt. They have to push all that cheap crap off onto someone that can afford it and we seem to be the best candidates. I doubt the South Americans are going to be buying much of that stuff nor the Indians, nor the Russians.
The public sector folk will be feeling the pain come tax time. Valuations will be down, expansion plans will be tabled or have the scope shortened, income for salaries/merit increases/cola will be under projections...the '05-'06 proposed budgets for roads, drainage, parks, infrasturcture will become less optimistic resulting in projects being delayed or deleted. It's the trickle down from the housing market to the public sector. This is going to go on for a while, at least a couple of years because public budgets are done years in advance of actually commissioning a project. On the other hand, public construction bonds may become very highly sought after investments...safe haven in heavy weather. So, it may all work out ok for public improvements.
SO WHO IS DOING THE WORK In The U.S?
The population of the USA is 300 million.
160 million are retired.
That leaves 140 million to do the work.
There are 85 million in school.
Which leaves 55 million to do the work.
Of this there are 35 million employed by the federal government.
Leaving 15 million to do the work.
2.8 million are in the armed forces preoccupied with killing Osama Bin-Laden.
Which leaves 12.2 million to do the work.
Take from that total the 10.8 million people who work for state and city governments.
And that leaves 1.4 million to do the work.
!
At any given time there are 188, 000 people in hospitals.
Leaving 1,212,000 to do the work.
Now, there are 1,211,998 people in prisons.
That leaves just two people to do the work.
You and me.
And there you are,
sitting on your arse,
at your computer, reading this thread.
With all the hype over the unemployment rate, perhaps you missed the "good" news this morning on poverty:
U.S. poverty rate declines significantly
Besides the fact that going from 12.6% to 12.3% after years of increases (even under Slick Willy) is hardly significant, nobody seems alarmed that 36.5 million Americans are dirt poor despite working like slaves. Where's that guy from Singapore making $6K who's able to save $1,500 of it every year? That's better than making $20,000 a year here and ending up owing people money! You have to factor in the cost of living which is simply absurd in America. Cheaper housing is a good start towards rectifying the situation, despite what all the blubbering fat cats on CNBC keep saying. Like I should care if their 10 million dollar home loses half its value. Guess what? I don't and it would be GOOD for the economy too. 36.5 million consumers would have more to spend in stores instead of wasting it on exorbitant rent. It's always the end of the world when the filthy stinking rich lose money but they just laugh like nothing's wrong as everyone else gets poorer and poorer. [end tirade]
I feel better now for some reason.
First off no matter what anyone does there will always be poor people, poverty is more of a state of mind than a financial condition and I highly doubt that the people in that number are members of the working class. Actually. probably 30-40% of the population contributes absolutely nothing and is living off the system. I won't argue that many work hard and have nothing for it but many more do nothing and seem to think that food, shelter and medical insurance was guaranteed in the Constitution along with life, liberty and pursuit of happiness.
Unfortunately our creator chose to link effort with survival, something that we in the US seem to have forgotten. He who don’t work don’t eat was not a man made reality but is part of the way life was created. That applies throughout history as well as in other nations of the world today where a poverty rate of less than 50% would be considered a “significant” accomplishment.
This is not Utopia. We cannot expect that every person who crosses the border or who had the benefit of being born here should be guaranteed prosperity that 99% of the world throughout history never had. Those are harsh facts and while the government will spend us all into poverty trying to change it the fact remains that there will still be poor people 300 years from now.
<< <i>Well I guess I should have followed Cohodks advice, and sold my oil SPDR’S, I am back to break even. This is truly amazing, over 400 million shares have been sold in just two days in this fund. >>
Right now commodities are trading in almost lock-step with the stock market, and both are being dominated by concerns about future economic growth. The commodities markets aren't much concerned at the moment with inflation or the dollar, both of which still look longer-term bullish for oil, gold, silver and many other commodities. But the market is obsessed with shorter-term reduced demand based on perceived future economic weakness.
<< <i>Funny...
With all the hype over the unemployment rate, perhaps you missed the "good" news this morning on poverty:
U.S. poverty rate declines significantly
Besides the fact that going from 12.6% to 12.3% after years of increases (even under Slick Willy) is hardly significant, nobody seems alarmed that 36.5 million Americans are dirt poor despite working like slaves. Where's that guy from Singapore making $6K who's able to save $1,500 of it every year? That's better than making $20,000 a year here and ending up owing people money! You have to factor in the cost of living which is simply absurd in America. Cheaper housing is a good start towards rectifying the situation, despite what all the blubbering fat cats on CNBC keep saying. Like I should care if their 10 million dollar home loses half its value. Guess what? I don't and it would be GOOD for the economy too. 36.5 million consumers would have more to spend in stores instead of wasting it on exorbitant rent. It's always the end of the world when the filthy stinking rich lose money but they just laugh like nothing's wrong as everyone else gets poorer and poorer. [end tirade]
I feel better now for some reason.
I agree that no one who works for a living should be poor. A couple who have to hold
six jobs running all over the city to get to work because greedy employers won't give
them 40 hours work is an abomination. Many people do spend beyond their means and
get into trouble where there was no need but it's hard to restrain your spending when
you see your neighbors throwing money away. Just the necessities of life can get pretty
pricey when your income is based on driving from minimum wage job to minimum wage job.
Give the rich a break.
Scene: Limo stops in front of your typical 3 Bedroom house.
Rich guy in Limo angrily shaking his fist and yelling to the dejected home owner sitting on front steps with his head in his lap:
Rich guy: "Didn't you know what your sub-prime mortgage was going to do to my hedge fund?"
roadrunner
Of this there are 35 million employed by the federal government.
Leaving 15 million to do the work.
Ok, Goldsaint - it looks like one of us needs to go back to math class. And after you do, there are still 5,000,001 of us doing the work!
I knew it would happen.
<< <i>
<< <i>Well I guess I should have followed Cohodks advice, and sold my oil SPDR’S, I am back to break even. This is truly amazing, over 400 million shares have been sold in just two days in this fund. >>
Right now commodities are trading in almost lock-step with the stock market, and both are being dominated by concerns about future economic growth. The commodities markets aren't much concerned at the moment with inflation or the dollar, both of which still look longer-term bullish for oil, gold, silver and many other commodities. But the market is obsessed with shorter-term reduced demand based on perceived future economic weakness. >>
Question for you Ziggy.........are the prospects for global growth any greater now than they were 10 years ago? I heard people talking about China this and India that, Brazil is in the sweet spot and Russia sits on huge natural reserves back in 1997. Then oil was was trading in the mid 30s, up from the low teens a few years earlier. The global growth engine was humming along, they said. Well, in the next year oil fell to as low as $12 a barrel. My point being that yes, the potential for growth is as strong as ever, but markets look at today and tomorrow, not 5 years from now. If you want to be an above average investor, then look at what is happening today, not what may happen next year-for that, no one knows.
Knowledge is the enemy of fear
<< <i>First off no matter what anyone does there will always be poor people, poverty is more of a state of mind than a financial condition and I highly doubt that the people in that number are members of the working class. Actually. probably 30-40% of the population contributes absolutely nothing and is living off the system. >>
Quite frankly, that's hogwash. But don't take my word for it, take Warren Buffett's word for it:
At a Hillary Clinton fund-raiser in New York last month, Warren Buffett, no stranger to wealth, told an audience filled with bankers and real-estate developers the system was, in effect, rigged. "This is what Congress in its wisdom did: the 400 of us [here] pay a lower part of our income in taxes than our receptionists do, or our cleaning ladies, for that matter." Buffett (who is a director of NEWSWEEK's parent, The Washington Post Company) offered a million dollars to any fellow magnate who could prove he had higher tax rates than his secretary.
Nobody in the room won a million dollars.
SOURCE: Private-equity billionaires -- the new Masters of the Universe -- often pay far lower rates than the rest of us.
It is hogwash. Republicans and Democrats both agree that 50% of the people pay no income tax. The 30-40% numbers are too low.
<< <i>My point being that yes, the potential for growth is as strong as ever, but markets look at today and tomorrow, not 5 years from now. If you want to be an above average investor, then look at what is happening today, not what may happen next year-for that, no one knows. >>
Well, yes, that was partially my point. The market is a forward-looking creature, but discounts the long term in favor of the short term. This is why a stock can get pummeled for doing the right things long term which weaken *this quarter* and its earnings. (These are what I call "buying opportunities.") So even as the "market" (which includes almost everything now except cash and Treasuries) collectively moves down in lock step, some of these participants in the downward move still seem to have solid long-term prospects. So if you aren't looking for a quick flip, these might be good to nibble on now.
Many institutions and mutual funds have to report what they hold every quarter and they don't want to be seen as holding a stock which has been a "clunker" in the recent past, too. Like corporations looking only at this quarter's results at the expense of the long term, they may be making the move which spares them the most pain this quarter, but possibly at a steep long-term price. We as individual investors have no such need to obsess about next quarter or even next year if we follow a sound, disciplined and diversified approach that we plan to stick with for 20 years or more. Because barring the apocalyptic scenario, in 20 years with a well-built and diversified portfolio, you'll be fine. In fact, if you periodically overweight stuff that has been recently weak by selling recently strong performing asset classes, you can do even better.
Wal-Mart Stores Inc. has avoided millions of dollars in state taxes by paying rent on 87 Wisconsin properties in a way that the state Department of Revenue calls an "abuse and distortion of income."
Alan really F'd things up.
The problem with capitalism is that the smart and/or lucky people get very wealthy and the average/unlucky are broke.
The trouble with socialism is there is little incentive to work or take risks.
In Europe and some other places they are trying a compromise between the two. I don't have any answers but I do know the U.S. has a real problem with the wealth gap and that socialism will never work no matter how well it is managed.
As far as the value of the U.S. dollar goes we know ultimately it will become worthless as do all fiat currencies. What is happening right now is the countries like China, India, Russia, and the Gulf states that are receiving billions of dollars each month do not want to sell the dollars because their currencies would rise dramatically so they just create more of their currency and buy U.S. Treasuries with the dollars. Lately they have been creating sovereign funds to buy U.S. assets with some of their dollars. The number of dollars these countries have is staggering. So it might not be a good idea to own any currency although some people like the Yen because so many people borrowed Yen at very low rates to invest elsewhere. So how about gold ? It seems like it should be a lot higher and I think it will be in the next 3-5 years but of course I don't know that. In fact I believe it is impossible to predict anything. Since I live in the U.S. and need dollars to live I've concluded the best thing I can do is get as many dollars as I can and hope I can maintain my standard of living. I have been selling my coins.
<< <i>The problem with capitalism is that the smart and/or lucky people get very wealthy and the average/unlucky are broke. >>
The smart and/or lucky people tend to have had the benefit of having gotten the government on their side as a partner in their quest for wealth. That's not capitalism's fault.
<< <i>That's not capitalism's fault. >>
I'd say it is capitalism's fault. In a true free market economy there's always a maximum size a corporation can become before it can no longer compete. Economies of scale only work until you reach the point of diminishing returns, then diseconomies of scale, like huge bureaucracies, hinder further growth. Restricting access to capital and creating regulatory/legal barriers to entry is the only way monopolies and oligopolies can exist in a "free" market economy. Capitalism allows big corps to grow "inorganically" (M&A) while their small competitors struggle to grow "organically" (ramping up production with limited funds). Capitalism is what enables the concentration of wealth and power in America.
“At a Hillary Clinton fund-raiser in New York last month, Warren Buffett, no stranger to wealth, told an audience filled with bankers and real-estate developers the system was, in effect, rigged.”
Coyn, Of course is correct in his assessment, and regardless of how lucky, tricky, or brilliant Mr. Buffet is in business he needs a new calculator. If there are 36.5 million poor in this country, and you took the 1.25 trillion dollars held by the wealthiest Americans and divided it among all of them, how long would the money last them?
Forget about taxes, just confiscate all the money the rich have made in a lifetime, and turn it over.
In the last 4 decades trillions and trillions of dollars have been spent in this country to eliminate poverty and what is the effect? Hardly anything.
“ Unfortunately our creator chose to link effort with survival, something that we in the US seem to have forgotten.”
I won’t say here that Mr. Buffet and the entire group of folks that think they can change the planet in a permanent way are Godless fools, but then again, they seem to be under the illusion that they are running things here, and can make a difference.
In reality they are running nothing, and the Creator will decide, what goes on here, who will be poor, who will be rich, etc.etc.
Mankind in the end is a very pathetic creature, who has for 10,000 years been trying to solve the problems of war, poverty, illness, etc. quite naturally none of these problems ever get solved as they are NOT in the design of the Creator.
This little tiny planet out in the back water of the Universe was never meant to be our permanent home, and all this effort to make it a permanent home is an absolute waste of time. We come here to play the GAME of life, to learn certain lessons, experience certain things, and then to leave as empty handed as when we came, and NOTHING, I repeat NOTHING, here ever changes!
From a personal perspective I really see nothing wrong with making comments about how the world is changing, and even pretending that we can play the game of life, and make small differences, but it is very foolish to think that we are in control.
Forbes:
“A nine-figure fortune won’t get you much mention these days, at least not here. This year, for the first time, everyone in The Forbes 400 has at least $1 billion. The collective net worth of the nation’s wealthiest climbed $120 billion, to $1.25 trillion.”
roadrunner
<< <i>Linking CPI to Tulips to the sub-prime mortgage fiasco - enjoy
roadrunner >>
Hopefully the FED will do as I think they should and NOT lower rates. I wanna buy some cheap stock.
Knowledge is the enemy of fear
<< <i>"In the last 4 decades trillions and trillions of dollars have been spent in this country to eliminate poverty and what is the effect? Hardly anything." >>
What people don't realize is that no matter what, there always has to be poor people because wealth and poor are relative. The poor will always do the "lesser" jobs - those jobs won't go away and someone has to do them. On the same token, you're not going to pay (for example) a fast food worker the same as you would a skilled worker. This will never change.
Poor people in this country have it damn good compared to poor in other countries. Most of our poor people have running water and color TV!
Perhaps someone needs to look at what poor means in other countries and then define what poverty is for the US relative to that definition.
<< <i>
<< <i>Linking CPI to Tulips to the sub-prime mortgage fiasco - enjoy
roadrunner >>
Hopefully the FED will do as I think they should and NOT lower rates. I wanna buy some cheap stock.
It could easily get cheaper than what you want to pay.
<< <i>
<< <i>
<< <i>Linking CPI to Tulips to the sub-prime mortgage fiasco - enjoy
roadrunner >>
Hopefully the FED will do as I think they should and NOT lower rates. I wanna buy some cheap stock.
It could easily get cheaper than what you want to pay. >>
I am actually pretty cheap, so the cheaper the better.
Knowledge is the enemy of fear
Is this another Government bail out program?
Aren’t all these FHA loans insured by the taxpayers?
Aug. 31 (Bloomberg) -- President George W. Bush will today announce steps the administration says will help people with sub-prime mortgages keep their homes.
Bush will let the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, guarantee loans for delinquent borrowers, allowing them to avoid foreclosure and refinance at more favorable rates, according to an administration official.
The change would affect borrowers who are at least 90 days behind in payments and let them stay in their homes, the official said on condition of anonymity. Bush, in a statement in the White House Rose Garden, also will back proposals to provide tax relief for homeowners who refinance.
Tighter credit and higher borrowing costs threaten the housing market, which has been an engine of U.S. economic growth. Democrats in Congress and the party's presidential candidates have criticized Bush for not taking action to prevent the spread of foreclosures.”
I'd have no problem with a mortgage bailout if the future profit from their home sale was Taxable. As it is, they get paid to not foreclose and then someday they keep all the profit for themselves. But... we do get the privilege of living next door and paying the bill.
Where was all of this help when I lost my home in Colorado many years ago when the town I worked at everything went bust???
<< <i>Linking CPI to Tulips to the sub-prime mortgage fiasco - enjoy
roadrunner >>
interesting article. i'll need to read it more thoroughly later
<< <i>Where was all of this help when I lost my home in Colorado many years ago when the town I worked at everything went bust??? >>
Obviously not a big enough disaster to prompt politicians to intervene (read: not enough good publicity in it for them to make it worth their while).
So- no soup for you.
Next!
I guess we should have bought a bigger house and let the feds save us.
This is pretty far fetched but what if Ben went to Bush and said, “ Listen George there is no way we can lower this rate to where the Fat Cats and the media will be happy. Remember all this sub-prime stuff is really a smoke screen for Credit Derivatives, and the sub-prime stuff is only a small part of that. Also, if we drop the rates very much NO more rollovers of the T-Bills. In addition we have sold billions in T-Bills the last few weeks with everyone running for cover, and all those folks will just sell out and get back in the stock market. So lets do this, make an announcement about FHA working through the problem, and throw it in the lap of congress, and then I do not have to do much.
Also I might warn you that the British, and Euro guys will be paying more interest than us if we cut, and the dollar will drop like a rock.”
Lets see next month if the inflation talk gets back in the Fed minutes and the cut is only a quarter?
I was willing to give Gorgie the benefit of the doubt on foreign policy, but he has now lost all my respect. His knowing this will surely keep him up tonight.
Knowledge is the enemy of fear
roadrunner
Only from the results of a controlled experiment, eliminating or accounting for all the variables, could this statement be made.
It is too bad that so many emotion-laden and vapid Talking Points are promulgated and believed as "The Truth!"
Kinda like giving the Romans bread and circuses to keep them docile.
<< <i>I've seen a number of articles recently about home owners (primary residence or 2nd and 3rd homes) walking away from them if they are upside-down on them. Now wasn't a new bankruptcy law passed in the past year that was going to prevent Joe Public from walking away from excessive home and credit card debt as easily in the past? The cc and home lenders saw this day coming so lobbied congress to pass a law to make them pay, forever. So my question is, why does every article I read only mention people walking away with no pain from their debts? Did I miss something on the new and tighter bankruptcy laws? Or do those laws allow an exception if you are upside-down on your loans and have zero other assets?
roadrunner >>
can't specifically answer your question, yet
a lot of banks own those homes and can't or won't sell at a loss either.
an interesting article in the W/E WSJ about CA home prices/ mortgages and the US economy.
i am one who thinks this is going super-nova
WSJ article