Why It's More Important Than Ever to Create Your Own Retirement Solution [View article]
What needs to happen is the creation of corporations of over 60's employees.
I have found it almost impossible to put up with some strands of younger workers, and I have been told that adding older workers, even if better than younger ones, upsets the workplace balance.
So, for me , doing work I love to do is only possible if I do my own thing, or join like minded oldies in an oldies corporation.
Frankenstorm 'The Not-So-Black Swan': Climate As The New Risk Variable [View article]
Watching Frankenstorm, and indeed Katrina on TV in Australia, and being quite interested in the analysis of hurricanes, I can only say I am amazed at the poor quality of infrastructure in the US given exposure to these weather events.
A big cyclone went through North Queensland in the past few years, and most, if not all modern construction survived very well. Whatever your view on climate change, it is impossible to think that anyone would build a house on the beach given that these storms are well documented to cause massive storm surges going back 100 years if not more. Then one comes along and the reaction is...wow, who would have thought.
The Netherlands, that is the whole country, went underwater in 1953 and they had no trouble designing and building their sea defences. The Dutch coast doesn't look anything like Atlantic City or New Orleans, and I bet it never will.
London was concerned that its subway might flood during severe storms and built a barrier across the Thames. Now I am aware that New York is in danger of severe storm surges going back to the 1830's, but apparently it is prepared to take the damage rather than prevent it.
So I understand the thrust of the article, but I have to say, the US appears badly set up whether the weather is getting worse or not.
New York City Home Prices Are Headed for Collapse [View article]
Its probably a lot of fun ferreting out these statistics. But, how is it that the real estate industry can avoid the sort of disclosure that applies to other asset classes, such as financial instruments and shares? And isn't it about time they were forced to?
As far as i am concerned, anyone who has a job only because of a government stimulus package is an unemployed person on a high wage. And how many of them are there...millions. Why pick on an unemployed person making do on food stamps.
The Last World War Helped the Economy: Why Not Another One? [View article]
Strangely enough, I think there is a case to be made that WW2 did result in economic progress, but not due to some misdirected government deficit spending. WW2 resulted in a huge increase in technical and productive capacity.
In 1940, the Bismark was sunk by torpedoes fired from a bi-plane. By 1945, US bombers were being shot up by jet and rocket powered aircraft, and Britain bombed by V1 and V2 rockets. By 1945 large aircraft could fly the Atlantic. Hunderds of planes and tanks could be made per week due to manufacturing and planning advances. Engineers could build an artificial harbour to support supply ships post the D-Day landings. The ships supplying the war effort were due to advances in welding. And lets not forget such trivia as the development of the atomic bomb, and all of the scientific knowledge that came as a result of that development.
While it may well have been due government deficit spending, the world looked totally different in 1949 as compared to 1939.
Microsoft, IBM and others did it again in the 1990's, and now we need to think of the next new major technological gain, but does it exist?
John, my problem with the smart money/dumb money argument is that I have not seen a quantitative analysis that these people exist "en masse".
I have spent some time looking at WhaleWisdom web site and especially at what the rich and famous have bought and sold, then correlating that to subsequent perormance,and likewise, I don't see the consistency that would make me co-invest with these people.
Very early on, I also looked at total market performance post an "overvalued/undervalued" scenario, and I was very disappointed to find that there is no correlation.
So, I guess I have a dilema, in that all of this sounds plausible, and it feeds on my behavioural biases, but its probably not contributing to my retirement.
By stating that "only 51,000 tons are mined every year. Many reactors are running at 50% capacity. Some have even been taken off-line." you imply that the lack of uranium is the cause. Yet a few years ago, reactors were being taken off line and treated as stranded assets by regulators, for reasons other than lack of fuel.
Real Estate Is Not a Good Investment When Interest Rates Are Low [View article]
Not quite.
High interest rates come with strong economic activity, and mortgages are not pure financial instruments as are bonds. A nice house in a nice neighborhood is an aspiration that the well off have. If economic activity is strong, interest rates will be high and interest in real estate will increase. History comprehensively shows that.
U.S. Economy: Be Careful What You Wish For [View article]
This comment originates from Australia.
I recently had a gall bladder operation for a total cost of $3000. I pay $100/month for 100% hospital cover, the surgeon charges $1,300 which is totally paid by the Federal Government and the anesthetist charged $700.
We recently met a Canadian woman who had her gall bladder removed in Florida. She was charged $80,000 by the hospital, this reduced to $40,000 on negotiation by her medical insurance.
The US medical costs appear from a distance to be self inflicted wounds, and the cost of medicare would appear to be bloated, not by some misguided social welfare mentality, but by something quite the opposite. If this ends up causing financial destruction in the US, then it would appear that medicine ranks up there with real estate and derivatives as unimaginable culprits.
And for a little bit more, Australia introduced a VAT style tax a few years ago with no discernible effect on the standard of living, and lifted the pension age for women from 60 to 65 without so much as a squeak from the population....and the living here has never been better.
While everything mentioned above is well supported, I think it should be noted that Australia has dodged every bullet ever fired at it in all of its history.
In the 1950's a book was written, probably on similar well thought out concerns about the economic and social issues of the day, called "The Lucky Country". The author means to ask, what happens when the luck runs out?
I saved for my retirement and was doing well. Then a sheik in Dubai potentially defaulted on loans used to build lavish 6 star hotels with equally lavish aquariums and ski fields insulated from 50 degree desert heat.
I have nothing to do with this guy. None of my investments are in any way connected with this extravagant waste, and hate to see money deployed in this way.
Nevertheless, the value of my share portfolio tanked and my dividends were cut and my central bank cut interest rates to unsustainable low levels. Now i cant live a comfortable retirement, but why not. Because of profligate behavior on the part of people outside of my legal and financial system, over whom I have no control.
Economists Menzie Chinn and Jeffry Frieden argue that as debt is the major factor dragging on economic growth, inflation should be allowed to rise. This "would reduce the real burden of debt on households, corporations and governments, spurring both investment and consumption." However, while the Chicago Fed's Charles Evans supports the idea, Ben Bernanke doesn't. (Summary) [View news story]
I scanned this article and unless mistaken, the arguments appear to advocate inflation as it relates to debtors and creditors.
We are constantly told that the cost of providing welfare to retiring baby boomers is a cost to expensive to bear. By increasing inflation, the retired sector of the economy quickly runs out of money, and becomes even more of a burden on the general economy. It appears to me that any argument that does not address this huge social consequence has absolutely no merit.
The real falsity of this argument is that, to protect my savings from disappearing under the weight of inflation, I and all retirees, would be best served by borrowing to fund the purchase of real assets which might withstand the ravages of inflation...which is where the discussion started.
Bernanke To Savers: We Don't Owe You A Living [View article]
True enough. Although I feel that retirees are being thieved big time, and that economics theory has not kept up with demographic reality, the fact is retirees are best served by a healthy economy and a strong stock market.
Savers Will Suffer In Aftermath Of QE3, Fed's Easy Money Policies [View article]
Compliments to the author. Its about time that the sentiments expressed got to the front page. I just cannot understand why the authorities are risking the destruction of retirement savings given that monetary policy will not pull any economy out of this recession/depression cycle. So no benefit now and certain calamity later.
Germany Vs. Greece: More Than A Game [View article]
Germany, zero for contribution to humanity..come on, not even a one for the saxaphone, flute, symphony orchestra, pianoforte, jet engines, rockets (including the one the US used to go to the moon), theory of relativity, bunsen burners, aspirin, benzene, internal combustion engine.
On a less serious note, there was a wonderful program on a bridge built in Greece called the Rio-Antirio bridge. It is one of the most magnificent feats of bridge building I have ever seen. Cost Euro 630 mill. My guess is to meet interest and maintenance costs, it probably needs 60,000 cars per day to wash its face. Trouble is, no matter how they photographed it, there was never more than a few cars on it at any one time. I suggest this construction is a contributor to Greece's debt problem, and symptomatic of the whole malaise in that country.
Why It's More Important Than Ever to Create Your Own Retirement Solution [View article]
I have found it almost impossible to put up with some strands of younger workers, and I have been told that adding older workers, even if better than younger ones, upsets the workplace balance.
So, for me , doing work I love to do is only possible if I do my own thing, or join like minded oldies in an oldies corporation.
Frankenstorm 'The Not-So-Black Swan': Climate As The New Risk Variable [View article]
A big cyclone went through North Queensland in the past few years, and most, if not all modern construction survived very well. Whatever your view on climate change, it is impossible to think that anyone would build a house on the beach given that these storms are well documented to cause massive storm surges going back 100 years if not more. Then one comes along and the reaction is...wow, who would have thought.
The Netherlands, that is the whole country, went underwater in 1953 and they had no trouble designing and building their sea defences. The Dutch coast doesn't look anything like Atlantic City or New Orleans, and I bet it never will.
London was concerned that its subway might flood during severe storms and built a barrier across the Thames. Now I am aware that New York is in danger of severe storm surges going back to the 1830's, but apparently it is prepared to take the damage rather than prevent it.
So I understand the thrust of the article, but I have to say, the US appears badly set up whether the weather is getting worse or not.
New York City Home Prices Are Headed for Collapse [View article]
Unemployment Chart of the Day [View article]
The Last World War Helped the Economy: Why Not Another One? [View article]
In 1940, the Bismark was sunk by torpedoes fired from a bi-plane. By 1945, US bombers were being shot up by jet and rocket powered aircraft, and Britain bombed by V1 and V2 rockets. By 1945 large aircraft could fly the Atlantic. Hunderds of planes and tanks could be made per week due to manufacturing and planning advances. Engineers could build an artificial harbour to support supply ships post the D-Day landings. The ships supplying the war effort were due to advances in welding. And lets not forget such trivia as the development of the atomic bomb, and all of the scientific knowledge that came as a result of that development.
While it may well have been due government deficit spending, the world looked totally different in 1949 as compared to 1939.
Microsoft, IBM and others did it again in the 1990's, and now we need to think of the next new major technological gain, but does it exist?
Thoughts on Market Timing [View article]
I have spent some time looking at WhaleWisdom web site and especially at what the rich and famous have bought and sold, then correlating that to subsequent perormance,and likewise, I don't see the consistency that would make me co-invest with these people.
Very early on, I also looked at total market performance post an "overvalued/undervalued" scenario, and I was very disappointed to find that there is no correlation.
So, I guess I have a dilema, in that all of this sounds plausible, and it feeds on my behavioural biases, but its probably not contributing to my retirement.
The Top 3 Ways to Play Uranium [View article]
Real Estate Is Not a Good Investment When Interest Rates Are Low [View article]
High interest rates come with strong economic activity, and mortgages are not pure financial instruments as are bonds. A nice house in a nice neighborhood is an aspiration that the well off have. If economic activity is strong, interest rates will be high and interest in real estate will increase. History comprehensively shows that.
U.S. Economy: Be Careful What You Wish For [View article]
I recently had a gall bladder operation for a total cost of $3000. I pay $100/month for 100% hospital cover, the surgeon charges $1,300 which is totally paid by the Federal Government and the anesthetist charged $700.
We recently met a Canadian woman who had her gall bladder removed in Florida. She was charged $80,000 by the hospital, this reduced to $40,000 on negotiation by her medical insurance.
The US medical costs appear from a distance to be self inflicted wounds, and the cost of medicare would appear to be bloated, not by some misguided social welfare mentality, but by something quite the opposite. If this ends up causing financial destruction in the US, then it would appear that medicine ranks up there with real estate and derivatives as unimaginable culprits.
And for a little bit more, Australia introduced a VAT style tax a few years ago with no discernible effect on the standard of living, and lifted the pension age for women from 60 to 65 without so much as a squeak from the population....and the living here has never been better.
An Epic Australian Bust [View article]
In the 1950's a book was written, probably on similar well thought out concerns about the economic and social issues of the day, called "The Lucky Country". The author means to ask, what happens when the luck runs out?
It never has, it has only multiplied.
The New Reality of Retirement [View article]
I have nothing to do with this guy. None of my investments are in any way connected with this extravagant waste, and hate to see money deployed in this way.
Nevertheless, the value of my share portfolio tanked and my dividends were cut and my central bank cut interest rates to unsustainable low levels. Now i cant live a comfortable retirement, but why not. Because of profligate behavior on the part of people outside of my legal and financial system, over whom I have no control.
Something wrong with that ?
Economists Menzie Chinn and Jeffry Frieden argue that as debt is the major factor dragging on economic growth, inflation should be allowed to rise. This "would reduce the real burden of debt on households, corporations and governments, spurring both investment and consumption." However, while the Chicago Fed's Charles Evans supports the idea, Ben Bernanke doesn't. (Summary) [View news story]
We are constantly told that the cost of providing welfare to retiring baby boomers is a cost to expensive to bear. By increasing inflation, the retired sector of the economy quickly runs out of money, and becomes even more of a burden on the general economy. It appears to me that any argument that does not address this huge social consequence has absolutely no merit.
The real falsity of this argument is that, to protect my savings from disappearing under the weight of inflation, I and all retirees, would be best served by borrowing to fund the purchase of real assets which might withstand the ravages of inflation...which is where the discussion started.
Bernanke To Savers: We Don't Owe You A Living [View article]
Savers Will Suffer In Aftermath Of QE3, Fed's Easy Money Policies [View article]
Germany Vs. Greece: More Than A Game [View article]
On a less serious note, there was a wonderful program on a bridge built in Greece called the Rio-Antirio bridge. It is one of the most magnificent feats of bridge building I have ever seen. Cost Euro 630 mill. My guess is to meet interest and maintenance costs, it probably needs 60,000 cars per day to wash its face. Trouble is, no matter how they photographed it, there was never more than a few cars on it at any one time. I suggest this construction is a contributor to Greece's debt problem, and symptomatic of the whole malaise in that country.