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Rousseau SC

Rousseau SC
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  • Is QE3 Working? [View article]
    Since the Federal Reserve is composed of bankers, why would anyone be surprised that their goal is to enrich banks and bankers? Who would expect otherwise?
    The evidence has shown that bankers are more concerned with the public good than they are with their own enrichment. Right. And John Dillinger was a humanitarian.
    Nov 24, 2012. 12:03 PM | 2 Likes Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    Since,, as the author points out quite well, the excess reserves created by Fed spending are being used by those in possession of money ("the rich") to pay down debt, rather than being spent, it is clear that the Fed policy has promoted the transfer of wealth from the middle class to the monied class; from small business to big business, from businesses that make things to the financial industries. As usual, the claimed goals are not the results.
    Nov 24, 2012. 10:08 AM | 1 Like Like |Link to Comment
  • Another Real Estate Bubble? [View article]
    If yhou go to Fannies' website (presuming it has not changed since I researched this a couple years ago) it is diffcult to find, but you can find their underwriting guidelines listed by year effective. Freddie simply adopted Fannie's so they don't show their guidleines on the website.
    If you read the guidelines from the early 2000's, which is the period I was looking at, the thing that jumps out at you is the underlying message, "if you will make the loan, we will buy it." Everyone was paid for loan production. They were not penalized for poor loan performance.
    Nov 24, 2012. 09:53 AM | Likes Like |Link to Comment
  • Another Real Estate Bubble? [View article]
    Lending standards are too lax if your goal is to have a nation of renters and/or people living in public housing. I rent. It isn't so bad, but I don't think homeownership should be so exclusive. The solution is to educate people as to what they can afford to buy and still have sufficient money to live the lifestyle they demand. The other half of the equation is that people need to grow up and realize they cannot "have it all".
    Nov 20, 2012. 11:40 AM | Likes Like |Link to Comment
  • "It would be much better for fiscal policy makers to simply remove the cliff," writes Strategas, noting negative economic growth typically brings with it a drop in the S&P of about 30%. Negative economic growth? It's sure to come. David Kotok reminds the hit to households from the tax increases will be 5-7%. [View news story]
    Wouldn't simply removing the financial cliff, rather than doing something constructive, show that there is no determination to solve the debt problem and cause an even greater economic crisis that the cliff?
    Nov 19, 2012. 03:06 PM | 1 Like Like |Link to Comment
  • Is The Fed's QE3 Liquidity Finally Starting To Flow? [View article]
    Very interesting. I really am worried about the impact of higher interest rates if we ever get a real recovery (one that "trickles down" to the middle class and, therefore, supports increased consumer spending). Do you think it makes sense to bet on utilities as safer cash cows but hedge my bet on the economy with IAU and SDS (which may hedge each other) or do you think that would be a losing strategy if the economy recovers? What do you think is the likelihood of QE infinity turning into substantial inflation in the near term and what would be its immediate impact?
    Nov 17, 2012. 11:11 AM | 1 Like Like |Link to Comment
  • U.S. Recession Odds: 100%? [View article]
    Thank you. My view is that the media focuses on whether the GDP is growing or contracting. The issue for most citizens is whether the average worker is being paid more or less in real after-tax (not just income tax, but including sales taxes, self-employment taxes, FICA, Medicare taxes, unemployment taxe, telephone taxes, property taxes, tolls, license fees, etc.) dollars.
    The answer to the real issue is obvious. People are struggling like never before in my lifetime and the politicians are trying to exacerbate the problem of burdensome govt. which only looks after itself.

    I remember getting a temporary job for the City of Greenville. My supervisor told me he was promoted to his position as a reward for finding another untaxed item from which the city could extract revenue. He had suggested taxing business signs. The city, using a federal grant, hired three people just to go to different businesses and charge them a fee per sign they displayed. That is the mentality I found in my one temporary local govt position. I was not proud to work there, but I was young and had to take the job to take care of an ill sibling and had no other means of supporting the two of us.
    I have been a self-employed busniessman since 1987. My experience is that all govt is dishonest, power-crazed, self-important and self-serving. We all know this, but people are afraid to say it.
    Does anyone over 30 yrs old, not employed by govt, really disagree with any of this?
    Nov 15, 2012. 09:16 AM | 1 Like Like |Link to Comment
  • U.S. Recession Odds: 100%? [View article]

    The disconnect is that the definition of recession in economic theory is flawed. When the average income declines, and when fewer people are working than previously, despite an increasing population, and when self-employed people are struggling like at no time previously during my 59 plus years of life, such as it has been for the last several years, I would unquestionalby call that a "recession" as the word is used in the vernacular. In this instance, the meaning of the word in the vernacular is far more significant than the meaning of the word in economic theory.
    Nov 14, 2012. 08:52 AM | Likes Like |Link to Comment
  • More than 350 coal-fired generators, or ~6% of U.S. power generating capacity, are too old and dirty and should be retired in favor of cleaner alternatives, according to a report from the Union of Concerned Citizens. Southern Co. (SO) has the highest number of "ripe for retirement" plants at 48, followed by the Tennessee Valley Authority's 28, and Duke Energy (DUK) with 17. [View news story]
    Why would we be overly concerned about pollution from coal in the USA and not sanction China for their pollution? China burns far more coal, if I am corect, far less cleanly and the pollution travels world-wide, to the harm of not only americans, but the entire world, including those peoples we supposedly care about. Why not lean on China to clean up their act for our health?
    Nov 13, 2012. 04:16 PM | Likes Like |Link to Comment
  • Seeking Alpha's Election Overview [View article]
    Well, if Obama ran in 2008 to "unite" the country, does anyone think he succeeded? Apparently, this country is more divided now than it has been since Vietnam. It certainly has more group-thinking people with resentment towards other groups.

    No, the playing field has never been level and it never will be level. However, hard work, clean living and perseverance can do a lot of leveling. Too many people would rather blame others for their own failures than work for success themselves.

    How can you respect politicians who encourage the public to whine and blame; vote their personal largesse, and slander good people who work hard, support themselves and their families and play by the rules? .
    Nov 13, 2012. 12:57 PM | 3 Likes Like |Link to Comment
  • Seeking Alpha's Election Overview [View article]
    Only the Dems play the race card.
    Nov 9, 2012. 03:27 PM | 1 Like Like |Link to Comment
  • Seeking Alpha's Election Overview [View article]
    Unfortunately, the most lasting effect of this election may be the way campaigns shall be waged in the foreseeable future.
    Obama won by identifying voting blocks who held resentment against those who they believed had victimized them; encouraging the passions associated with victimization, blaming the alleged wrong-doers for all the ills of our society, and appealing to the self-perceived victims as the candidate who would give them "a level playing field".. If campaigns based on segregating the population into "us vs. them" voting blocks continue to proper, then this nation will not be free or prosperous for long. It will not be a pleasant place to live.
    Nov 7, 2012. 10:53 AM | 2 Likes Like |Link to Comment
  • Speculating Bernanke has taken the lead in exit polls, ZH notes gold has gone vertical in the past few minutes (chart). GLD +2%. SLV +3.1%. Oil is on the move as well, USO +2.6%[View news story]
    I can't speak to all exit polls, but after my wife and I waited two hours to vote today, I did not see the lady taking the exit poll, but my wife commented to me that everyone that the exit poller interviewed looked very similar in age and ethnicity. Exit polls are skewed to match the unsupervised poller's preferences.
    Nov 6, 2012. 03:59 PM | Likes Like |Link to Comment
  • U.S. Recession Odds: 100%? [View article]
    From what I can tell, and the private sector people I know, we are either in a recession or in a depression.
    Nov 6, 2012. 10:08 AM | Likes Like |Link to Comment
  • Is An Obama Victory Already Priced In? [View article]
    Why do you claim the Republicans caused it? That is inaccurate. Bush inherited a recession and turned it around with his tax cuts. Even Obama admitted that when he extended them.
    What caused this debacle was Freddie, Fannie, and their co-conspirators in Washington (principally Barney, and Chris, but also including B. O.) and their co-conspriators on Wall St (including Tim Geithner and his pals). Cause a fiscal problem, get elected, exacerbate the problem and blame the other side to get re-elected. They think Americans are fools. Maybe they are right.
    Nov 6, 2012. 09:28 AM | Likes Like |Link to Comment