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diadochi

diadochi
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  • Core CPI weakest in four years [View news story]
    You buy your own groceries? After a 5 year bull market? :)
    Sep 17 10:16 PM | 1 Like Like |Link to Comment
  • "Now We Are At The Lower Bound": Draghi Reaches The Dead-End Of Keynesian Central Banking [View article]
    What? Damn brother, quit reading so much of the bible and try a basic finance site!

    As in, lower interest rates make paying off a loan faster, if you maintain the same payments as you did at a higher interest rate. Or perhaps you were just treading water before, now you are paying off principal now.
    Sep 6 09:14 PM | Likes Like |Link to Comment
  • "Now We Are At The Lower Bound": Draghi Reaches The Dead-End Of Keynesian Central Banking [View article]
    Maybe too much of the total wealth has been appropriated by "seniors, account holders, Mmkt. fund holders, etc. ", in the past, and the primary mechanism has been high interest rates. Now that metric has been reversed, and maybe the capitalists, like myself, and presumeably, yourself, have to survive some other way, rather than the comfortable previous days of wine and roses; seeking rent.

    The debtors are having their way, and it's time for us to give back, in this turn of the economic cycle. Buy assets that can generate income and hang on for the ride. Or...go start a business, get a job...do something useful that others will pay you for.
    Sep 6 09:07 PM | Likes Like |Link to Comment
  • Even The Council On Foreign Relations Is Saying It: Time To Rain Money On Main Street [View article]
    Not a bad idea, but perhaps something more permanent would be in order; a long term solution for a long term issue. Perhaps fund a sovereign wealth fund invested in some sort of DGI scheme, with all Americans as its beneficiaries, all the way up to the top 1%. (Anything else won't fly.)

    And as to showering money on the bottom 80%, how about we get something for our outlay:

    Like a nation-wide system of bike trails, better power infrastructure in windy/sunny flyover country like Texas (surprise, eh?) has done, more science foundation grants, high speed train systems for congested freeways, subsidized education (and not necessarily the university system), teaching people to be small business owners, grants to get high speed connectivity to every nook and crany, like we did with electricity, and a final emphasis on reducing work hours for everyone so they don't p*ss away their every waking moment working and get some time to explore this wonderful world we all live in.

    I'm sure others could add to the list. Much better if you have to work for your gains, in any endeavor, than it just being handed to you.
    Sep 2 10:57 AM | 3 Likes Like |Link to Comment
  • Piketty's Envy Problem [View article]
    Dump it into the stock markets. It will be far from risk free, but it will be a party for awhile, anyway.

    Markets will correct these imbalances, one way or another, I suspect. After all, it's pretty hard to run a capitalist economy without consumers. But it may not be particularly pretty or fun to live through.

    Perhaps we can think of something other than depression and war to correct this issue?

    Or perhaps others think this problem will resolve itself other than in depression/war? I'd really, (and I mean really) would love to hear how this scenario plays out.
    Sep 1 10:35 PM | Likes Like |Link to Comment
  • Piketty's Envy Problem [View article]
    And was one of the causes of the Great Depression. As the returns to wealth increase and more and more wealth is concentrated in fewer and fewer hands, it has little place to go but into financial speculation (or saving, if you will), as there's only so much money a man or woman can spend on themselves. (Which is why I actually believe that this market, much like that of the 1920's, has far to run in these low interest and deflationary times.)

    I don't know how it gets accomplished, but spreading out the returns from our very productive economy is an imperative if the consumer is supposed to buy all this stuff we produce.

    Otherwise the game slows down...and eventually stops.

    Bad for you, bad for me.
    Sep 1 10:25 PM | 2 Likes Like |Link to Comment
  • Piketty's Envy Problem [View article]
    And how would government develop this spine? When Senators and Representatives are paid a laughable salary compared to what it costs to acquire such positions (Senate: $10.2m, salary $174k, Representative: $1.6m, salary $174k). We should really just eliminate the salaries to illuminate the issue.

    These are the folks that handle a $3.9t annual budget. A reasonable salary would be closer to $40m/Senate, $10m/House, based on corporate averages, about .18% of sales/budget---if you actually wanted government, big or otherwise, to sprout some balls when dealing with business.

    Otherwise, it's like asking employees to face down their employers. Not going to happen. And so, government and business are joined at the hip.
    Sep 1 10:13 PM | 2 Likes Like |Link to Comment
  • Why Interest Rates Won't Rise - Continued [View article]
    I wonder what developed world governments would purchase with this low cost capital? What is it we need? The developing countries have the greatest unmet needs, but it is the developed countries that need the fiscal stimulus.

    It could be argued that there needs to be a paradigm change in say the work/play, rich/poor balance in the developed countries that would require a re-think in the "what is needed list", but there as yet just a suggestion of a discussion going on about these topics.
    Sep 1 11:11 AM | 1 Like Like |Link to Comment
  • Top Mobile Carriers To Face Continued Pressure From Innovation [View article]
    Agreed, it's a workcation. But it's all I want to afford. Replacing me is simply too expensive.

    ...on call for the last 14 years, but I still manage to get in almost retirement levels of recreation---and my full cost T plan enables this lifestyle, from the beaches of Oregon kiteboarding to remote Utah mountain biking, and paragliding everywhere, mostly very rural with quite often 4G lte service. T rocks, and is only getting better.
    Aug 29 06:14 PM | Likes Like |Link to Comment
  • The Dirty Dozen: 12 Key Reasons To Raise Cash And Get Defensive [View article]
    Agreed, it's gone too far, but what would change the trajectory?

    The few decent paying blue color jobs are oversubscribed, (which means that they won't be high paying for long), while jobs with high technology or significant educational/training requirements go unfilled, (according to the media).

    The reserve army of the unemployed sit in the billions offshore, only a TCP/IP packet away, and the echo boom of the IT revolution still cranks out more productivity improvements, while business hoards cash not seeing any increase in demand while they offshore and automate. :)

    It's a bear market in humanity, (and cash, as a side note).

    But then again, we have been through this sort of thing before. Who would have thought that illiterate farmers could work on and build mechanically complex assembly lines, using new technologies like electricity and the phone, right off a childhood of the plow? The farm economy was also in a long deflation, just like "average" workers wages now.

    Maybe we'll need some adjustments to what is considered a job and work, going forward. We might even consider some sort of equity position in a sovereign wealth fund as you contribute to society.

    Or perhaps we'll be idiots about this change, and start killing each other over what is just another jump change in technology, and eventually come to terms with the new situation anyway. Hopefully we can be smart about this and not be too frozen in our thinking about what is possible.
    Aug 29 12:01 PM | 1 Like Like |Link to Comment
  • Rates And Reality [View article]
    I can only hope that those young people will have something to offer the economy other than nimble fingers and strong backs. The robots have arrived on the job, and only those that can contribute to that world will thrive. The "over 28" requirements say it all; these job openings aren't about knowledge; a 28 year old knowledge worker is just getting getting going.
    Aug 20 09:36 AM | 1 Like Like |Link to Comment
  • Bank Of America - Nearing Inflection Point [View article]
    Well written, and erudite comment, Wharton. However, this scenario of de leveraging and ever lower, or even below the zero bound interest rates, is what we have been in since the Great Recession has begun.

    Nothing new here; it is as its ever been.
    Those that have hid in cash, as you and others, who were making erudite and persuasive arguments by the hundreds here on SA, especially nearer to to 2009, have lost out on the kind of market returns that only come around once in a generation.

    I agree with everything you've said, and maybe we are headed to a Japanese Lost Decade (s) globally.

    But against that is: Never, Ever, fight the Fed (s). And it's not just the US Central bank that has adopted ultra loose policy.

    Low economic activity just means the Central banks are going to stay on the job longer. Ultra low rates and QE are nirvana for financial assets, as we all have seen. Don't fight the tape. It could still be a heck of a run as this global CB policy begins to work----against all expectations.
    Aug 20 09:10 AM | Likes Like |Link to Comment
  • Bank Of America: Get Out Now, The Bank's Coffin Is About To Be Nailed Shut [View article]
    I just love the imagery evoked by your title! However, I'm with the undead, on this one. Long the vampires. ..and BAC in particular starting in the $7 range. Appreciate the airing out of the worry closet, though.
    Jul 11 09:35 AM | 3 Likes Like |Link to Comment
  • On The Fourth Of July: Bullish On America [View article]
    I wonder how much Eric's and other commenter's enthusiasm for a "cleansing" would wilt if it were them that took the cleaning? When the dry powder gets wet after the middle class gives up on capitalism entirely after yet another complete melt down followed by more asset concentration into the "strong hands".

    While I agree that the US has some aspects that set us above other stories such as Europe and Asia, our greatly diminished social capital since the 1970s is crippling. The sense of entitlement on the part of the wealthy and the welfare class is killing the incentives to work.
    Jul 4 11:15 AM | 2 Likes Like |Link to Comment
  • Top Mobile Carriers To Face Continued Pressure From Innovation [View article]
    Try using Republic when your car breaks down on some rural highway...or try getting some work done in just about any of the places that offer a good vacation. Trying to find an open hot spot is so 2005. Yes, my smartphone roams to wiFi as much as it can; my carrier T encourages it to offload data traffic. Not even slightly convincing as some sort of paradigm shift.
    Jun 8 08:08 PM | 1 Like Like |Link to Comment
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