Celebrating the 'Recovery': I'm Disgusted 65 comments
-
Font Size:
-
Print
- TweetThis
It seems that “recovery” is in the air…
The Fed says so… The White House says so… even Boston’s oldies station 103.3 says so as they segued into another run of Prince’s 1999…. The “recession is over” they excitedly declared… Time to party!
I’m simply disgusted…
On the plane upon arrival from vacation, I overheard a middle-aged dad asking his teenage daughter to use her cell phone to check on Citigroup stock… it was up… they shared in a moment of bonding while talking about being able to watch Jim Cramer’s Mad Money now that they were back in the States (… no joke!)…
America doesn’t just deserve a serious beat down… it needs it.
Our population has lost all respect for risk… This is the real moral hazard created by the Feds…
If you randomly polled Americans and asked them if the Federal Reserve and Federal Government have a responsibility to protect stock prices, I can only imagine that the overwhelming response would be a resounding 'yes'!
But Americans are more than just faithful… it’s been so long and the manipulations so deep and varied (GSEs in the mortgage market, Fed Reserve easy money policies and resulting dynamics, bailouts, incentives, rebates, etc.), they are simply ignorant.
After last fall’s financial panic came a period of clarity in early 2009 that I believe marked a momentary realization that circumstances for all people (the down-market and dual-income alike) could seriously deteriorate.
Likely many middle and upper-middle class Americans had a sense, possibly for the first time in their lives, that they too could lose their job… maybe even their home or worse yet… their status.
While I believe that this moment of truth has since continued to have consequences (…consumer behavior, low sentiment), the government stepping in to bail, prop and spend and support stock prices essentially gave people what they have grown to expect… a sense that the Feds are in control and can always put a floor under crisis.
The collapse of the nation’s housing markets and the resulting economic decline really represent an immense opportunity.
Like a blast of ice water to the face, this period has been a wake up call... frightening yet a fundamentally positive agent of change forcing both households and firms to reevaluate and relearn the basics… planning and saving, using debt sparingly … questioning popular assumptions… especially those fostered by industry groups with dubious interests.
Yet, the Feds are bent on circumventing this process, stopping at nothing, to “save” the economy.
And while they ironically congratulate themselves for the “courage” they displayed late last year while forcing the country down this low road, let’s remember that real courage would have been to simply face the problems head on - not attempt to avoid their realization with bailouts, incentives, gimmicks and trickery.
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Mike Havrilla
Top Instabloggers » -
1
-
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
This article has 65 comments:
Many top economists believe that the economy will not recover unless and until the real state of the banks and their assets are acknowledged and insolvent banks broken up in an orderly fashion.
The Financial Accounting Standards Board (FASB) is, in fact, considering a reversal from its April change in policy which suspended mark-to-market accounting. Specifically, FASB is considering vastly tightening mark-to-market requirements to include virtually all securities on a bank's balance sheet.
The Obama administration believe that setting these rules aside and allowing the assets to increase in value after the recovery, that the assets will be worth more.
We are not dealing with reality, there is more pain to come.
On Aug 24 12:12 PM conceptwizard wrote:
> The Obama administration believe that setting these rules aside and
> allowing the assets to increase in value after the recovery, that
> the assets will be worth more.
>
> We are not dealing with reality, there is more pain to come.
>
Recovery? Not with help like this.
And remember, Michigan's governess is on Obama's "top notch" economic fix it team.
They can fake numbers for a while, but soon the paper will be blown away. Increasing stock prices or not.
Very well expressed, my feelings exactly. However, long a few positions here, would make Cramer proud, therefore will shower upon sale thereof...
On Aug 24 01:02 PM DaveW wrote:
> S.O.T.T,
> Very well expressed, my feelings exactly. However, long a few positions
> here, would make Cramer proud, therefore will shower upon sale thereof...
Anything less than drastic devastation of what would be considered "normal" will just constitute an extension of the bubble, be it houses or stocks. There is no reason why these bubbles can not extend for a long time, with only partial deflations from time to time. But if you want 60 years like the last 60 years, the bubbles have to go flat and start over. Otherwise the two markets (houses and stocks) will have significantly lower returns going forward than we have become used to.
But the Day of the Lord is at hand. All lights go out.
-Knute Rockne
Apparently Not Much Has Changed And Derivatives Are Back In Fashion:
USA Today - Remember me? Wall Street repackages debt for sale
www.usatoday.com/money...
"In recent months investment banks have been repackaging old mortgage securities and offering to sell them as new products, a plan that's nearly identical to the complicated investment packages at the heart of the market's collapse."
HOLY CRAP !!!
In the South Seas bubble they did the same thing; a fall in the speculation on governemnt debt (essentially Fannie/Freddie, banks, insurance companies) they simply began to repackage and rename the debt and sold it all over again, creating a bigger bubble.
Notice that GMAC bank has changed it's name to "Ally" bank?
Right...as in "Allied forces" or "my friend"? Oy Vey...
On Aug 24 08:34 PM PainfullyAware wrote:
> Be Disgusted, VERY DISGUSTED !!!
>
> Apparently Not Much Has Changed And Derivatives Are Back In Fashion:
>
>
> USA Today - Remember me? Wall Street repackages debt for sale
> www.usatoday.com/money...
>
>
> "In recent months investment banks have been repackaging old mortgage
> securities and offering to sell them as new products, a plan that's
> nearly identical to the complicated investment packages at the heart
> of the market's collapse."
>
> HOLY CRAP !!!
The recession is over!!!!!(flutes clanking)
Today, so far, 9 guys and 3 gals on TV told me it was. I just wish I still had my job or a decent chance to find a new one in the foreseeable future to avoid forclosing on my house, but NO ONE gets everything they want.
BUT AT LEAST THE RECESSION IS OVER
AWESOME!!!!
What is disgusting is the lack of morals and honesty all the way around from Congress, the Administration, the Federal reserve, the Treasury, and all the Regulators starting with the SEC. It is true they are all doing it to protect their job and calling it "doing what is neccesary to prevent a meltdown but they have now been saying this for about 2 years. Will they be saying this 2 more years from now? The simple fact is that their actions at absolving wrongdoers and covering up losses are preventing anyone from actually fixing anything.
"Today we mourn the passing of a beloved old friend, "Common Sense", who has been with us for many years. No one knows for sure how old he was, since his birth records were long ago lost in bureaucratic red tape. He will be remembered as having cultivated such valuable lessons as: Knowing when to come in out of the rain; why the early bird gets the worm; Life isn't always fair; and maybe it was my fault.
Common Sense lived by simple, sound financial policies (don't spend more than you can earn) and reliable strategies (adults, not children, are in charge). His health began to deteriorate rapidly when well-intentioned but overbearing regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouth wash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition.
Common Sense lost ground when parents attacked teachers for doing the job that they themselves had failed to do in disciplining their unruly children. It declined even further when schools were required to get parental consent to administer sun lotion or an Aspirin to a student; but could not inform parents when a student became pregnant and wanted to have an abortion.
Common Sense lost the will to live as the churches became businesses; and criminals received better treatment than their victims. Common Sense took a beating when you couldn't defend yourself from a burglar in your own home and the burglar could sue you for assault. Common Sense finally gave up the will to live, after a woman failed to realize that a steaming cup of coffee was hot. She spilled a little in her lap, and was promptly awarded a huge settlement.
Common Sense was preceded in death, by his parents, Truth and Trust. His wife, Discretion, his daughter, Responsibility, his son, Reason. He is survived by his 4 stepbrothers; I Know My Rights; I Want It Now; Someone Else Is To Blame; I’m A Victim.
Not many attended his funeral because so few realized he was gone. If you still remember him, pass this on. If not, join the majority and do nothing.
"Our forecast is for moderate but positive growth going into next year. We think that by the spring, early next year, that as these credit problems resolve and, as we hope, the housing market begins to find a bottom, that the broader resiliency of the economy, which we are seeing in other areas outside of housing, will take control and will help the economy recover to a more reasonable growth pace."
--November 8, 2007
(thank you John Hussman for this timely reminder)
Full day
FNC – 1,171,000 viewers
CNN – 478,000 viewers
MSNBC –392,000 viewers
CNBC – 198,000 viewers
HLN – 296,000 viewers
Prime Time
FNC – 2,036,000viewers
CNN— 621,000 viewers
MSNBC –753,000 viewers
CNBC – 114,000 viewers
HLN – 468,000viewers
Justice shall continue to be served, and I expect some political justice to follow in the future.
On Aug 24 12:50 PM Nick36 wrote:
> Celebrating a recovery while so many people are unemployed and loosing
> everything due to unmanageable debts is a risky thing to do for politicians
> and government officials. Because when the next election comes, many
> voters might blame the government for being unsympathetic to their
> needs.
On Aug 24 12:12 PM conceptwizard wrote:
> Two nobel prize winning economists Merton and Scholes' state that
> without a reversal of the "mark to market" accounting rules for the
> banks, there will be no recovery.
> Many top economists believe that the economy will not recover unless
> and until the real state of the banks and their assets are acknowledged
> and insolvent banks broken up in an orderly fashion.
>
> The Financial Accounting Standards Board (seekingalpha.com/symbo...)
> is, in fact, considering a reversal from its April change in policy
> which suspended mark-to-market accounting. Specifically, FASB is
> considering vastly tightening mark-to-market requirements to include
> virtually all securities on a bank's balance sheet.
>
> The Obama administration believe that setting these rules aside and
> allowing the assets to increase in value after the recovery, that
> the assets will be worth more.
>
> We are not dealing with reality, there is more pain to come.
>
When are Americans going to wake up to the fact that our economy, much like the banks, is really a deck of cards? How can our economy 'grow' when we have rising budget deficits and trade deficits, even if our economy turns around? How do you 'grow' when deficits are everywhere?
I wonder what would have happened at Bastogne and the Rhine crossing if American soldiers had the kind of pessimism shown in some of the comments published on this site. Yes, the so-called energy bill is pretty close to bonkers, and I tune out when I hear about the health 'thing', but dont be surprised if the macro-financial medicine works, and sooner rather than later.
The tsunami of lay-offs hasn't hit government workers yet. Every corporation has cut back people and benefits but many government workers seem to think they are all immune to this.
We cannot support a bloated government that spends like its still 1999. Every agency should be cut by 20-25% and if the administrators do not have the skill sets to accomplish this - get rid of them. That would probably get each agency and department closer to the 20-25% reduction goal. (Take the Patton approach to leadership - if you can't reach the objective of cutting 20-25% of the budget - you're relieved f duty)
"Do more with less" maybe a prevalent mantra in the private sector, but in the public sector it is more like "Do less with more".
On Aug 25 08:57 AM Ferdinand E. Banks wrote:
> Hmm. Seems to me that with all the bad news people expect, we have
> only one choice: reelect Obama, and after him make sure that Hilary
> gets her eight.
>
> I wonder what would have happened at Bastogne and the Rhine crossing
> if American soldiers had the kind of pessimism shown in some of the
> comments published on this site. Yes, the so-called energy bill is
> pretty close to bonkers, and I tune out when I hear about the health
> 'thing', but dont be surprised if the macro-financial medicine works,
> and sooner rather than later.
The next thing that would need to be changed is to make positions more tenuous as one rises. This seems so obvious, but until one gets to the appointment levels, jobs remain extremely secure. Why? Because those who make up the rules by which they are themselves governed make it so. Congress doesn't make the rules for HR. The senior managers do and they are very well protected, thank you very much. I've seen senior officials demoted to staff level positions, only to watch as they refused to do work that was beneath their pay grade. Oh yes, they retain their pay level until they retire even if they don't do any work.
After a little over 20 years in the federal government I couldn't take it anymore so I took an early retirement offer. I really didn't fit in too well anyway. You know - thinking like an individual, questioning asinine, wasteful procedures, and the like. What iced the cake was when I had started trying to fit in and got compliments. I was struck with fear as I realized that I was becoming a bureaucrat! It was time to leave. However, looking back on it all now, I could have stayed in my little corner office for another 8-10 years and had a very cushy retirement. I could still be there and feel extremely secure in my job if I had.
They are the modern day "Untouchables."
On Aug 25 08:57 AM JAMES CARLINI wrote:
> Great article, but you leave out a segment that really is oblivous
> to all of this and they just keep wanting their "automatic raises"
> and automatic budget increases.
>
> The tsunami of lay-offs hasn't hit government workers yet. Every
> corporation has cut back people and benefits but many government
> workers seem to think they are all immune to this.
>
> We cannot support a bloated government that spends like its still
> 1999. Every agency should be cut by 20-25% and if the administrators
> do not have the skill sets to accomplish this - get rid of them.
> That would probably get each agency and department closer to the
> 20-25% reduction goal. (Take the Patton approach to leadership -
> if you can't reach the objective of cutting 20-25% of the budget
> - you're relieved f duty)
>
> "Do more with less" maybe a prevalent mantra in the private sector,
> but in the public sector it is more like "Do less with more".
On Aug 24 10:28 PM Moon Kil Woong wrote:
> Conceptwizard: I agree a accounting change does not make the world
> instantly sunshine and roses. It just cover up lies, damn lies.<br/>
>
> What is disgusting is the lack of morals and honesty all the way
> around from Congress, the Administration, the Federal reserve, the
> Treasury, and all the Regulators starting with the SEC. It is true
> they are all doing it to protect their job and calling it "doing
> what is neccesary to prevent a meltdown but they have now been saying
> this for about 2 years. Will they be saying this 2 more years from
> now? The simple fact is that their actions at absolving wrongdoers
> and covering up losses are preventing anyone from actually fixing
> anything.
On Aug 24 11:11 PM Mark Bern wrote:
> An Obituary reported to have been printed in the London Times. Interesting
> and sadly true:
>
> "Today we mourn the passing of a beloved old friend, "Common Sense",
> who has been with us for many years. No one knows for sure how old
> he was, since his birth records were long ago lost in bureaucratic
> red tape. He will be remembered as having cultivated such valuable
> lessons as: Knowing when to come in out of the rain; why the early
> bird gets the worm; Life isn't always fair; and maybe it was my fault.
>
>
> Common Sense lived by simple, sound financial policies (don't spend
> more than you can earn) and reliable strategies (adults, not children,
> are in charge). His health began to deteriorate rapidly when well-intentioned
> but overbearing regulations were set in place. Reports of a 6-year-old
> boy charged with sexual harassment for kissing a classmate; teens
> suspended from school for using mouth wash after lunch; and a teacher
> fired for reprimanding an unruly student, only worsened his condition.
>
>
> Common Sense lost ground when parents attacked teachers for doing
> the job that they themselves had failed to do in disciplining their
> unruly children. It declined even further when schools were required
> to get parental consent to administer sun lotion or an Aspirin to
> a student; but could not inform parents when a student became pregnant
> and wanted to have an abortion.
> Common Sense lost the will to live as the churches became businesses;
> and criminals received better treatment than their victims. Common
> Sense took a beating when you couldn't defend yourself from a burglar
> in your own home and the burglar could sue you for assault. Common
> Sense finally gave up the will to live, after a woman failed to realize
> that a steaming cup of coffee was hot. She spilled a little in her
> lap, and was promptly awarded a huge settlement.
> Common Sense was preceded in death, by his parents, Truth and Trust.
> His wife, Discretion, his daughter, Responsibility, his son, Reason.
> He is survived by his 4 stepbrothers; I Know My Rights; I Want It
> Now; Someone Else Is To Blame; I’m A Victim.
> Not many attended his funeral because so few realized he was gone.
> If you still remember him, pass this on. If not, join the majority
> and do nothing.
It is not innappropriate to begin adjusting one's portfolio to hedge what many consider to be an inevitable economic reality to the free-for-all spending spree and robust class warfare.
I know at least 10 people that went to the docs with one problem. Now they are all on 5-15 different drugs to combat the problems the other drugs caused.
And for some reason we want all Americans to experience the "health".
What a joke our world has become.
On Aug 25 08:30 AM Bernard Thomas wrote:
> An guys like Kudlow are begging FASB to not reverse its mark-to-market
> decision because it will kill the bull market. It is better to feel
> well than to actually be well. Pay no attention to the toxic assets
> behind the curtain.
Us, is the working man who for centuries brought wealth to the entire population.
Us is dead and there is not enough of "us" left to turn the tide back.
On Aug 25 09:41 AM Moto wrote:
> Congress is us. The administration is us.
All Hell Pilots stand by.
Accept This As The Truth The Whole Truth & Nothing But The Truth
You people still don't get it.
The Central banks along with the Federal Reserve, Fractional reserve banking procedures, and absence of the Gold standard are the spring boards of happiness for these cartel counterfeiters to rake the entire world over the coals and out of existence.
Federal Reserve Notes are near extinction. Rightfully so, because they(FRN) are worthless paper not soft enough for biological purposes and have no value without Gold standard backing it.
The rest of the world is starting to realize the USD (Federal Reserve Note) is the ROOT CAUSE OF PRESENT GLOBAL CHAOS.
Use the Gold Standard and get rid of Federal Reserve Notes and start having the U.S Government Treasury print United States Notes backed by gold reserves only producing allotments as needed to balance goods and services.Reappointment of Ben Bernanke is not the answer for the further coming troubles this nation called United States of America is in for sooner than you can imagine. President Obama needs to reconsider his decision and:
Abolish the Federal Reserve Act of 1913,Fractional Reserve Banking, the IRS, Ben Bernanke and the entire Federal Reserve System.
Then you will be able to understand and open your mind and eyes and move on to a better economic level of survival.
In other words remove 96 years of bend over vaseline jobs from the Federal Reserve System.
Just a thought ............. Have a good day,week,month,year and next decade.
Stepbear7
It was the best thing that ever happened to me.
I never saw so much bureaucracy, waste and inefficiency in my life. Along with that was the self importance of the employees. And rarely did anything ever get accomplished.
I was afraid if I stayed any longer, I would get the reputation as a government drone and nobody would ever hire me.
I guess things didn't get any better since 35 years ago.
On Aug 25 09:33 AM Mark Bern wrote:
>
> After a little over 20 years in the federal government I couldn't
> take it anymore so I took an early retirement offer. I really didn't
> fit in too well anyway. You know - thinking like an individual, questioning
> asinine, wasteful procedures, and the like. What iced the cake was
> when I had started trying to fit in and got compliments. I was struck
> with fear as I realized that I was becoming a bureaucrat! It was
> time to leave. However, looking back on it all now, I could have
> stayed in my little corner office for another 8-10 years and had
> a very cushy retirement. I could still be there and feel extremely
> secure in my job if I had.
>
> They are the modern day "Untouchables."
Could you also tell us how you did in this market so far?
On Aug 24 02:06 PM John Lounsbury wrote:
> In the history of bubbles and financial dilusions, the cycle has
> never ended until the object of affection is treated with revulsion.
> When home ownership drops well below the historical average in the
> low 60% area, that will be the equivalent of revulsion and a centennial
> bottom bottom will be in. When less than 20% to 30% of Americans
> own stocks, that will be the equivalent of revulsion.
>
> Anything less than drastic devastation of what would be considered
> "normal" will just constitute an extension of the bubble, be it houses
> or stocks. There is no reason why these bubbles can not extend for
> a long time, with only partial deflations from time to time. But
> if you want 60 years like the last 60 years, the bubbles have to
> go flat and start over. Otherwise the two markets (houses and stocks)
> will have significantly lower returns going forward than we have
> become used to.
Nah. This time, Atlas hurled.
I regret that "the health thing" puts you to sleep, but I suppose one should not underestimate the bliss that can result from sticking one's head in the sand.
On Aug 25 08:57 AM Ferdinand E. Banks wrote:
> Hmm. Seems to me that with all the bad news people expect, we have
> only one choice: reelect Obama, and after him make sure that Hilary
> gets her eight.
>
> I wonder what would have happened at Bastogne and the Rhine crossing
> if American soldiers had the kind of pessimism shown in some of the
> comments published on this site. Yes, the so-called energy bill is
> pretty close to bonkers, and I tune out when I hear about the health
> 'thing', but dont be surprised if the macro-financial medicine works,
> and sooner rather than later.
www.washingtonpost.com...
Perhaps GSEs were not the cause of the housing bubble, certainly were not the sole cause, but let us not rewrite history to put the blame on Bush administration and away from the opponents of reform (who are, ironically, now in charge). Bush's record is summarized here:
gatewaypundit.blogspot...
On Aug 25 10:28 AM diogeron wrote:
> I find it interesting that the "GSEs" are often cited as the core
> of the problem. Since Fannie was created in the 1930s (Freddie in
> 1970), it appears that the CONCEPT of a GSE to create a secondary
> mortgage market wasn't necessarily flawed. In fact, they worked quite
> well until their underwriting standards were lowered with the full
> support of the mortgage bankers, realtors, President Bush and the
> majority of members of Congress (yes, BEFORE Barney Frank took control
> of his committee in February of 2007). There is plenty of blame to
> go around, but people should stop implying that the creation of the
> GSEs somehow caused this meltdown.
Forbes and everybody else who prefers a crack high over muscle mass were begging for MtM to be repealed.
After major banks lobbied [paid] the inbred Congress get rid of fair-value accounting, FASB was intimidated to change the rules when stocks were low by threats of bipartisan Congressional action.
Thank goodness politicians are analysing the books instead of us accountants. People might have a clue otherwise.
On Aug 24 12:12 PM conceptwizard wrote:
> Two nobel prize winning economists Merton and Scholes' state that without a reversal of the "mark to market" accounting rules for the banks, there will be no recovery. Many top economists believe that the economy will not recover unless and until the real state of the banks and their assets are acknowledged and insolvent banks broken up in an orderly fashion.
> The Financial Accounting Standards Board is, in fact, considering a reversal from its April change in policy which suspended mark-to-market accounting. Specifically, FASB is considering vastly tightening mark-to-market requirements to include virtually all securities on a bank's balance sheet.The Obama administration believe that setting these rules aside and allowing the assets to increase in value after the recovery, that the assets will be worth more. We are not dealing with reality, there is more pain to come.
>
On Aug 25 09:41 AM Moto wrote:
> Congress is us. The administration is us.
On Aug 25 10:43 AM Northstar10000 wrote:
> Obma just said he will reappoint Big Buck Ben. Guess he wants to
> be sure the helicopter squad will be ready without skipping a beat.
>
> All Hell Pilots stand by.
When a drunk driver is able to drive for 30 miles without killing somebody we don’t point to the first 30 miles and say “see it wasn’t the first drink that caused the accident…the problem was that he started drinking vodka instead of beer...in-fact he drove quite well...after all he drove 30 miles before he crashed into that school bus and killed all those kids.”
GSEs are bad ideas because an agency CAN NOT be both a Government entity and a private entity. It must be one or the other.
On Aug 25 10:28 AM diogeron wrote:
> I find it interesting that the "GSEs" are often cited as the core
> of the problem. Since Fannie was created in the 1930s (Freddie in
> 1970), it appears that the CONCEPT of a GSE to create a secondary
> mortgage market wasn't necessarily flawed. In fact, they worked quite
> well until their underwriting standards were lowered with the full
> support of the mortgage bankers, realtors, President Bush and the
> majority of members of Congress (yes, BEFORE Barney Frank took control
> of his committee in February of 2007). There is plenty of blame to
> go around, but people should stop implying that the creation of the
> GSEs somehow caused this meltdown.
On Aug 25 02:11 PM milkchaser wrote:
> We could remedy that situation in 2010 and 2012.
I can grasp that some actions taken by those involved in the economic process have been significantly flawed, and that some actions taken by those involved in mitigating the current crisis also have questionable merit. However, I don't know how useful it would be for me to take actions based on writings that suggest and sometimes insist on broad and sinister dealings in places like the (current) White House and Federal Reserve.
On a small scale, I bought shares of discounted stocks throughout the recession. And after saving money for the past seven years, I'm currently negotiating the purchase of a small home that I will rent out for the next several years. These actions don't exactly sit well with me, but I don't know how anyone would benefit if I were to take steps in another less trusting and supportive mode.
Good luck with the feds, I'm sure it will work better than here.
ps-don't forget paid for LIFE with great insurance too. How many taxpayers have that?
On Aug 25 08:57 AM JAMES CARLINI wrote:
> Great article, but you leave out a segment that really is oblivous
> to all of this and they just keep wanting their "automatic raises"
> and automatic budget increases.
>
> The tsunami of lay-offs hasn't hit government workers yet. Every
> corporation has cut back people and benefits but many government
> workers seem to think they are all immune to this.
>
> We cannot support a bloated government that spends like its still
> 1999. Every agency should be cut by 20-25% and if the administrators
> do not have the skill sets to accomplish this - get rid of them.
> That would probably get each agency and department closer to the
> 20-25% reduction goal. (Take the Patton approach to leadership -
> if you can't reach the objective of cutting 20-25% of the budget
> - you're relieved f duty)
>
> "Do more with less" maybe a prevalent mantra in the private sector,
> but in the public sector it is more like "Do less with more".
Keep on believing that this is a red vs blue problem.
On Aug 25 02:48 PM joes wrote:
> We did remedy the problem in 2008, it will take time to correct the
> folly of Reagan and Greenspan but that is the way it is always has
> been. The next "remedy" will come along but in the longer term the
> politics and administrations action mean nothing.
On Aug 24 11:11 PM Mark Bern wrote:
> An Obituary reported to have been printed in the London Times. Interesting
> and sadly true:
>
> "Today we mourn the passing of a beloved old friend, "Common Sense",
> who has been with us for many years. No one knows for sure how old
> he was, since his birth records were long ago lost in bureaucratic
> red tape. He will be remembered as having cultivated such valuable
> lessons as: Knowing when to come in out of the rain; why the early
> bird gets the worm; Life isn't always fair; and maybe it was my fault.
>
>
> Common Sense lived by simple, sound financial policies (don't spend
> more than you can earn) and reliable strategies (adults, not children,
> are in charge). His health began to deteriorate rapidly when well-intentioned
> but overbearing regulations were set in place. Reports of a 6-year-old
> boy charged with sexual harassment for kissing a classmate; teens
> suspended from school for using mouth wash after lunch; and a teacher
> fired for reprimanding an unruly student, only worsened his condition.
>
>
> Common Sense lost ground when parents attacked teachers for doing
> the job that they themselves had failed to do in disciplining their
> unruly children. It declined even further when schools were required
> to get parental consent to administer sun lotion or an Aspirin to
> a student; but could not inform parents when a student became pregnant
> and wanted to have an abortion.
> Common Sense lost the will to live as the churches became businesses;
> and criminals received better treatment than their victims. Common
> Sense took a beating when you couldn't defend yourself from a burglar
> in your own home and the burglar could sue you for assault. Common
> Sense finally gave up the will to live, after a woman failed to realize
> that a steaming cup of coffee was hot. She spilled a little in her
> lap, and was promptly awarded a huge settlement.
> Common Sense was preceded in death, by his parents, Truth and Trust.
> His wife, Discretion, his daughter, Responsibility, his son, Reason.
> He is survived by his 4 stepbrothers; I Know My Rights; I Want It
> Now; Someone Else Is To Blame; I’m A Victim.
> Not many attended his funeral because so few realized he was gone.
> If you still remember him, pass this on. If not, join the majority
> and do nothing.
As far as my market performance goes... I have made a little in the last few months, but I have recently taken direct control of my investments so I have been mainly waiting in cash until I felt comfortable with a trading strategy that suits me. I am reaching a point where I will start employing what I have been learning and will have a better evaluation for you in about a year. Thanks for asking.
On Aug 25 12:26 PM Rick Urban wrote:
> Suncatcher, thanks for sharing your pessimism with us.
> Could you also tell us how you did in this market so far?
Better Be Cautious.
The More You Know The Less Certain You Will Become.
The Macro Is Good To Know - Best To Know What "Land Is Unstable" As To Avoid Being Caught In A "Landslide".
Live While You Live.
Safety Is A Function Of Awareness.
On Aug 25 03:09 PM joeevan wrote:
> The dissemination of writings on the current economic debacle is
> extremely varied. And for me, this is a particularly difficult time
> to cull the various articles and find a way to move forward in some--
> forgive the expression-- positive way.
>
> I can grasp that some actions taken by those involved in the economic
> process have been significantly flawed, and that some actions taken
> by those involved in mitigating the current crisis also have questionable
> merit. However, I don't know how useful it would be for me to take
> actions based on writings that suggest and sometimes insist on broad
> and sinister dealings in places like the (current) White House and
> Federal Reserve.
>
> On a small scale, I bought shares of discounted stocks throughout
> the recession. And after saving money for the past seven years,
> I'm currently negotiating the purchase of a small home that I will
> rent out for the next several years. These actions don't exactly
> sit well with me, but I don't know how anyone would benefit if I
> were to take steps in another less trusting and supportive mode.
They will unfortunately keep bailing us because we, as voters, are either indiffernt, complacent or just sitting pretty and simply quiet co-conspirators in this game.
American voters are just too fat and happy and once someone is born with a golden spoon in mouth, one is very hard to go back to hard work. The Senators & Congressmen are merely reflecting this weakness. They want to get reelected so the listen to the voter's pulse that does not want any pain and simply wants to postpone the day of reckoning.
And so the story goes. Bernanke said the governemnt has the power to do that, will exercise this power. Eventual victim will be the dollar and our lifestyle vis-a-vis what it used to be 10 years ago and vis-a-vis the rest of the world. America will still be the most affluent country in the world but this time a little poorer than it used to be...
I've seen hundreds of these guys - very little real knowledge of financial markets who sat at home all day in their underwear trading and they make a few bucks and think how they are so much smarter than everyone else. They'll think - "Ooh,Steve Jobs feels good today,I'll buy some Apple and make money."
They never succeed over the long term - my guess is that he will be a street person within a few years.
And Rick, in case you're curious - yes, I have made good money this year by completely avoiding the US and investing overseas and in commodities.
On Aug 25 12:26 PM Rick Urban wrote:
> Suncatcher, thanks for sharing your pessimism with us.
> Could you also tell us how you did in this market so far?
Obama also believes he can get all the money (taxes) he needs to do all the socialist programs he wants as long as he can sneak it by the American people. I believe this will come in the form of a VAT (value added tax) in his second term (if he gets one). The VAT is hidden in product cost, so that anger by the public at increases in cost of living can be directed toward corporations and away from the pols who imposed the tax.
On Aug 24 12:36 PM Dave Wrixon wrote:
> Obama believes in the Tooth Fairy!
>
On Aug 26 02:04 PM Chancer wrote:
> Obama believes in the Tooth Fairy, if the Tooth Fairy believes in
> socialism as he does. Obama is commited to converting America from
> a constitutional republic with a limited federal government into
> a social democracy with maximum federal government- greater than
> the socialist democracies of Europe.
>
> Obama also believes he can get all the money (taxes) he needs to
> do all the socialist programs he wants as long as he can sneak it
> by the American people. I believe this will come in the form of a
> VAT (value added tax) in his second term (if he gets one). The VAT
> is hidden in product cost, so that anger by the public at increases
> in cost of living can be directed toward corporations and away from
> the pols who imposed the tax.