David Zanoni

How Can We Get the Economy Back on Track?

Yes, what Russ said.


On Oct 05 05:47 PM Russ Wetherill wrote:

> So the author is basically saying that the problem is Capitalism
> and the solution is Socialism? Well... I see I have some work to
> do here.
>
> The author claims that there is a serious mal-distribution of income
> in the US. What should it be, and who decides? Should the government
> put together a chart that shows the allowable salary payable for
> a certain position regardless of experience or performance? Or perhaps
> the government could just mandate a flat salary for everyone? Would
> that solve the problem?
>
> The author also claims that the rich hoard their money. Actually,
> 42% of all discretionary spending comes from the top 10% of wage
> earners. They actually spend more, not less than average.
>
> Furthermore, the size of the overall global economy is based on the
> productive efforts of all participants within that economy. That
> productivity results from individual effort for individual gain.
> The amount of effort expended is directly proportional to the expectation
> of some sort of remuneration. Remove that expectation, or diminish
> it in some form, and the effort will soon decrease as well.
>
> Substantial investment of time and effort is required to attain higher
> skill levels in any field. No sane individual will trade their most
> valuable possession, time, for equal pay. Moreover, forcing this
> individual to work for the same pay as lesser skilled competitors
> is morally unconscionable. Ever heard of the thirteenth amendment?
>
>
> If you, as a shareholder or consumer, are unhappy with executive
> pay at a company, then vote with your feet. There are many companies
> out there that have limits of executive compensation packages. Of
> course, many of those aren't all that profitable...
>
> The point is that Capitalism, despite all of its faults, is far better
> than any alternative. What other system allows a penny-less immigrant
> to start his or her own business, keep most of what they earn, and
> create a better life for themselves and their family? By and large,
> a free economy favors those that put forth the effort and properly
> punishes those who do not.

Natural Gas: An Energy Resource Whose Time Has Come

Natural gas already has pipelines running through cities to homes and businesses - it's just a matter of adding to the existing infrastructure.


On Sep 23 06:37 AM bartpr wrote:

> the investment in expensive refueling station that could safely store
> and dispense ng would be massive. if it is not delivered to the
> stations by truck, a questionable process, it would require massive
> underground piping to handle the volumes to individual stations.
> existing pipelines could not handle the additional volumes during
> peak winter usage times.
>
> it will nver happen.

Closing Update for Friday, Sept. 18: Bull Run Hangs On, Barely

Vman, I'm not sure what area of the country you are from, perhaps Detroit from your sentiment. I know things are difficult for many people throughout the country, but things are improving. It will be a slow recovery job wise, but that's the reality of the situation. I don't think the dollar stores will be filled with Made in the USA - we're more service oriented than manufacturing now. The businesses that will pick up in the US are: healthcare, home repair, retail, banking, and technology.


On Sep 18 06:15 PM vman650 wrote:

> Until my next door neighbor can get a job
> Until my other next door neighbor can get surgery on his shoulder
>
> I will see the Dow upticks as being phony
> I think it is great that the bankers are getting wealthy
> I think it is great that commissions on wall street are up
> I think it is great that nasdaq is up every day
> I think it is great that Cramer is having an orgasm on TV
> I think it is great that Kudlow is in hog heaven
> Isn't this the same Kudlow who said "WHAT RECESSION" and then the
> market crashed from 1400 to 660
> I think it is great that CEO's are making millions again
> So let it go up every day and never down
> It only makes me more suspicious
> I hear the race track CNBC touts say it is up because everyone though
> it would be down today
> I wait to hear the sound of factories humming
> I wait until the dollar store is filled with made in the USA
> I wait until Kudlow reveals his trading position before yelling BUY
> BUY BUY
> AND I AM NOT ALONE

It's Time to Sell Equities and Look to These 3 Areas

I wouldn't short the market right here unless it's for a one week trade. We're still below the pre-Lehman brothers levels and economic indicators are rising. If something changes significantly, then it may indicate that the market may turn down. Next week, we may see a technical pullback as profits are taken, but I think we remain above 1000 on the S&P.

Every Economic Cloud Has a Silver Lining

The main point that I meant to emphasize is that silver rises much higher on a percentage basis in relation to gold. That is the primary reason to buy silver over gold.

Gone Nowhere in 8 Years

Yes, the market has gone nowhere this past decade, but it has been doing this in the past and has recovered every time. This time is no different. After this period of consolidation we will again experience a strong bull market of approx. 15 years in length. Look at the following chart for perspective. bigpicture.typepad.com...

Options Trader Friday Outlook: Up, Up and Away

I don't think your end of the world sentiment is reality. Many economic indicators are improving, although slowly. We're past the armegedon stage.


On Sep 11 10:45 AM Warm_Paw wrote:

> I'm of the opinion we'd be in free fall right now if the public was
> allowed to know the truth. Delinquincies are easing only because
> mortgage resets are easing. Next summer will be the next wave of
> downturn as Option ARMS reset at a pace close to the sub prime resets
> we've just worked through.
> Banks have been allowed some accounting rule changes which don't
> truly reflect where they really are.
> When mortgages were lent, the banks booked real time value on mortgage
> backed securities that weren't really of the quality the banks were
> lead to believe. With each foreclosure, banks are learning what exactly
> their mbs is really worth.The banks haven't had to show the public
> what their market value is at this point. They're still showing book
> value as if the foreclosures were a non event. Like someone soon
> will repurchase the property and pay the outstanding mortgage, giving
> value back to their mbs. Banks would like to write off losses if
> they could only realize them. As each foreclosure occurs, the bank
> truly holds less money. It would be interesting to know where the
> banks are in losses. The part that closes the bank is the fact they
> need X amount of capitalization to what they lend the public.
> If we learned what their losses were, they'd have to find cash to
> recapitalize and there's nowhere to find that cash. Everyone else
> is hurting too. The Fed won't have enough to give again.
> Fractional Reserve Banking reuses money deposited so banks usually
> actually own probably 1/5 of the actual dollars they circulate.<br/>The
> FDIC is almost broke so the depositor is going to get a 1929 feel
> to this downturn.
> America is out of gas and if manic efforts to rally this market fail
> - it's going to be a fire sale to people who have no money.
> Ironic how the whole house of cards is built on faith and the value
> of anything is only what someone else will pay for it at any given
> moment.
> If people knew the truth not only would they not invest, they'd keep
> deposits to a minnimum.
> I pick September 17 2009 as the day someone points out the emporer
> isn't wearing any clothes.
> It's the beginning of the next wave of resets.

S&P's New High for 2009 - Another Victory for the Bulls

The monkeys are actually all of the bears that don't want to believe the rally because they are not participating in it.


On Aug 23 10:45 AM DaveW wrote:

> When I think of bulls and their belief that this is true recovery,
> I'm reminded of that commercial where there are a dozen monkeys around
> a table in the boardroom, they are depressed seeing the chart pointing
> down, so one turns the chart 180 degrees, now the chart is pointing
> up and the monkeys erupt with unabashed jubilation and screeching.

S&P's New High for 2009 - Another Victory for the Bulls

Well, we might as well make the stock market fun - it sure does beat being boring. Lets go Dow Jones, Lets Go! CLAP, CLAP;
Lets go Dow Jones, Lets Go! CLAP, CLAP !!

Low volume or not, trade what is in front of you and enjoy the gains.

Lets go Dow Jones, Lets Go! CLAP, CLAP !! Victory, Yeah !!

On Aug 23 09:24 PM inthemoney wrote:

> I find it funny how people see the market as some sort of a sport,
> bulls vs. bears. When a market is going up, the hosts on CNBC for
> example, announce it with loud and cheerful voices, the only thing
> they are missing are pom-poms.
> The reality is the market is almost a zero-sum game with a tilt in
> favor of bulls. You are not there to cheer for your favorite team,
> you are there to make money regardless of the team your are on.

Every Economic Cloud Has a Silver Lining

The article was no more useless than your comment. Where are your articles? I find it funny that it's the non-contributors who make the most negative non-productive comments. Perhaps it's because your articles were rejected.

On Sep 09 09:42 AM pungent wrote:

> Although I am a silver investor, this was a fairly useless article.
> If, as you state, your primary reason for buying silver is "for the
> simple reason that it’s much cheaper than gold", may I suggest copper
> which is SERIOUSLY cheaper than gold. Or perhaps aluminum? I think
> I may reasonably summarize this article as "Hey gang, buy silver
> 'cuz I am!!"

Bears Might Miss a Remarkable Recovery

The inventory of the retail outlets such as Walmart, Best Buy, Home Depot, Lowes, TJX, etc will need to hire more people to handle the flow of merchandise not only at the store level, but also at the distribution centers. With increased distribution, comes increased transportation (more drivers/logistical workers will be needed). All of that work takes place right here in the US. These workers will then start to put more money into the economy with a domino effect taking place (more homes being sold, mortgages bought, money spent on clothing, travel, etc.) I'm not just talking about the need for entry level jobs, but also the need for well paying management jobs. Furthermore, those who have excellent business acumen and an entreprenurial spirit will start new innovative businesses and employ more people. (Bill Gates started Microsoft during a recession).

On Sep 01 02:37 PM Bjarne Jensen wrote:

> If I read you correctly, the key to the glass being half full (instead
> of half empty) is that restocking inventories will put displaced
> employees back to work and the ensuing build in confidence will start
> consumers buying again. What I don't understand is how restocking
> the shelves with goods mostly made in China is going to put our displased
> workers back on the job.
>
> I will greatly appreciate anyone who can clarify that for me!

Bears Might Miss a Remarkable Recovery

Antonio, excellent point about the lowered inventories. Many are underestimating the gains that will come as a result of replenishing them.

Kass's Call: Gain or Pain for Shorts?

I think that Kass will be wrong this time. I believe that we'll get another shallow pullback of no more than 5%.

Due for a Correction? Market Is Already Priced for Grim Future

I like your point about Health Care - a double dose of stimulus per year for eternity. However, how high will our taxes go?

To the author: good analysis. The S&P PE ratio of over 100 that people are arguing on here is a bogus number. Just look at the S&P of strong companies like: JNJ, APPL, WMT, MCD, PG, etc. - their PEs are all under 100 & many are under 20. I think if we average 3 - 4% GDP growth, the market will continue to rise - let's just hope that we do get that growth.

On Aug 31 09:23 PM E Nuff Sed wrote:

> I agree with most of what you are saying except your politics. "Like
> the market, I was blindsided by the dreadful selloff that occurred
> from mid-February to through early March. I think that selling climax
> was the market's way of expressing its horror at the degree to which
> fiscal policies had suddenly shifted to the left: a massive increase
> in so-called "stimulus spending" threatened a similarly massive increase
> in future tax burdens, not to mention a gargantuan increase in the
> public debt."
>
> The US currently spends 16% of its GDP on Healthcare. Assuming it
> adopts the Canadian model of universal healthcare it would spend
> 10% of GDP. The savings of 6% is about 1 Trillion dollars. This
> would amount to a double dose of stimulus per year for eternity.
>
>
> Half of Personal bankruptcies in the US are due to health care costs
> - something unheard off in the rest of the western world. This takes
> a terrible cost out of the economy.
>
> I like your thoughts as a economist but your politics need some work.
> It is not consistent. There are many things the government does
> better than the private sector - healthcare, defense, primary education,
> public infrastructure, law and order being the primary examples.

Both Sides of the Coin: A Technical Bullish Argument

Everybody has been talking about a sizeable pullback since May, so I wouldn't be surprised if we kept going higher.