Responsibility

My 10 Predictions for 2010

Years ago, people have been worrying about the energy and resource burdens on world resources when emerging markets become increasingly consuming communities such as U.S.

The successes of the growing economies around the world have finally caused the bubble to burst in 2008 prompted by the artificially inflated oil price, the burden of the wars, and the ever increasing energy consumptions by US home and auto industries.

We need to emphasis on sustainable growth by restraining our (worldwide) demand for our share of resources. A restraint on oil price and increase of alternative energy sources are needed to let the economies recover to a sustainable pace.

There are much conflicting arguments, but reduction of energy consumption is a MUST, with few disagreement on this point. Let's start the New Year with a common goal to reduce our energy consumption worldwide, regardless of belief in global warming or not.

Global Markets Outlook: 3 Events that Could Shake the Markets During a Quiet Week

Capitalism has good and bad practices just as socialism. Some bad practices are capitalism regardless of social and environmental costs. Over-emphasises on consumptions of goods and services led to budget deficits and corrupted social valuse.

Taxes must be put to good usage. Taxes have become too high especially because the taxes are used for making large government agencies that are non-productive to the bottom line or that are not instrumental in promoting good values in the society. Tax on interests from saving should be abolished to give incentive for saving that is good as a restraint on over-consumption and as a resource to finance worthwhile infrastructure building and to stablize long term wealth growth to benefit home values and small businesses. One way is to eliminate the interests on savings equal to two years of highest income.

Oil and Gas Inventories Tell the Story of the Markets

The increase inventory has only limited meaning in the long run. US has to learn to live within its means (financially and energy-wise).

Inspite of all the uproar in this inventory rise, US has only reduced oil consumption by just a small 10% and is still running a big trade deficit. The previous very high prices has been triggered by similarly small decrease in inventory.

Imagine the big effect if people put efforts to really cut back on oil consumption in another 10%! Another 10% cut should be achievable when people understand the significance.

Options Trader Friday Outlook: Will We Finish the Week Over Target Levels?

As some one already commented, a good investment for China is building an empty city or mall when costs are low in difficult economic times; China is also investing big in energy efficient public transportation such as trains, subways, and high speed rail.

For U.S., good investments should be continuing new technology development and improving/re-building infrastructures, even in difficult economic times.

Unfortunately, many in U.S. still think that consumer type consumption is good for economy, regardless of much evidence that un-sustainable consumer goods consumption is bad for everything, from economy to ecology. Marketing gimmicks and Hollywood have been soft selling people to spend and spend, rather than build and build, and into believing that we want all those toys, big and fast cars, big homes, fancy vacation trips, and many wasteful consumer habits.

Let's cheer for the continuing lowering of oil and gas consumption, and of general non-industrial consumptions. We should eliminate the so-called consumer confidence index and replace it with a consumption efficiency index that measures infrastructure efficiency: energy consumption reduction, living costs reduction, and government costs reduction.

By the way, inspite of the all the urging to increase internal consumption by U.S. to stimulate the economy, responsible foreign governments have been smart to control internal consumption very carefully; many have learned hard lessons.

Jim Rogers on the Next 10 Years

Very lively comments on many grounds. Jim R's opinions have some truth but so are others. Mostly, Jim R expressed his appreciations for the recent fast growth in China.

Just want to add that US's urgent matters are:
1. the financial sector problems
2. the war on terrorists or extremists
3. the energy shortage and
4. the trade deficit

These are the main problems that are putting US's overall economy at risk and China is not the culprit, with exception possibly for the trade deficit item that at most be 50-50 accountable between US and China.

China is a partner with US in working out these matters, regardless of China becoming a super power or not. Learning Chinese is just one little item among many items, like learning Spanish is for having more fun and convenience to enjoy our south side neighbor.

Market's Continuing Theme: Sell the Dollar and Buy Stocks

"Sell the dollar and buy stocks" is one of several proposed reasons for the market uptrend.

But as a couple of commenters have already suggested that "sell the dollar" is apparently contradictary to "buy stocks". I tend to agree and want to point out that an improving economy is at least as equally the reason for an up market, given that there are continuing issues to tackle.

The Coming Economic Collapse, Part 2

We can always find faults with what others have done. The fact is that Americans on average are spending more resources than other people on per capita basis. My children all are occupying larger homes than mine, spending more on cars, spending more on recreations, - - - - - . If individuals are like that, Corporations and Governments are the same, because they are run by those same people.

China Dumping Long-Term Bonds, Concerned About U.S. Inflation

Should we be figuring out how to be constructive in improving employment, industries, education, life styles, - - - , and in resolving conflicts in places with wars and terrorists problems, than to judge and to analyze what one other country does with its savings?

China Is Now in Firm Control of U.S. Debt Markets

I am surprised and confused to read so many comments on this one article about one foreign country.

Is this country the reason for the real estate bubble?
Is this country the reason for the frauds in the financial markets?
Is this country the reason for the irresponsible actions of people in US corporations?
Is this country the reason for the loss of education results?
Is this country the reason for the drug problem in US?
Is this country the reason for the high level of consumptions (wastes) of resources?
Is this country the reason for the demise of the US auto industry?
Is this country the reason for the demise of any US industry? (Please bear in mind that mostly US companies are manufacturing and then selling the Chinese products in US, making money by pushing down costs?)

Should more people be interested to make comments, suggestions, and actions to correct these real issues, instead of judging and criticizing what one particular country is doing with its savings?

If U.S. wants to take account of irresponsible countries, why not at least also talk about countries involved with the troubled areas of the world such as Africa, Middle East, - - - Afganistan, India, Parkistan, - - - where there are real wars and terrorists fighting going on daily?

David Tice: S&P 500 May Plunge to 325

What is the value of a company struggling to keep producing or of a half empty commercial building where people continue to work as usual?

People should recognize that a struggling company is more valuable than cash getting minimum interests or merchandises and services generating no added real values to society. Why would people pay $1K for an oz of gold, or over hundreds or even thousand dollars for still another fashion handbag or luxury oversea vacation, or over $3 for a gallon of gas, instead of for 1000 shares of a company generating real employment?

Rather than just looking at accounting numbers, we should use more common sense regarding values, to help the recovery. Complicate accounting and investing schemes are partly responsible for getting us into this financial problem.

The Federal Reserve Has Failed Its Economic Mission

Since trade deficit is a key problem, how can a relatively larger amount of bail out money be allocated to fix trade deficit than to other areas?

Exporting more to fix the deficit is preferred but that may take time and other efforts such as increasing values in products and lowering costs.

Reducing import is helpful to fix the deficit faster than other efforts and should become the responsibility and priority for all.

Geithner vs. Schiff: A Thought Bridge Between Two Wrongs

Large scale wasteful spending is like giving a free hand to executives and financial people to award themselves with other people's money.

Just before the situation turns sour, at the peak of oil prices (another bubble caused by wasteful spending), one can buy a new automobile with zero interest loan.

There should be a proper cost for consumption, not an artificially created low or high cost. Throwing money in to stimulate consumption will cause more problems; the money should better be wisely used for useful infra-structure and smart business investment.

An Immediate, Implementable Solution to Toxic Assets

Although I do not understand exactly all the elements proposed, there is apparently no suggestion to include certain commitment from the debtors. When we have such a big problem, the cause is due to many factors and all of us must bear some responsibilities, more or less.

Let's include the requirement of a life long liability for the debtors to pay up, with 10% of their future incomes to be withheld as tax penality, until they shall pay up their responsible share of 0.5*(100-TT)%*DEBT; that is debtors are required to pay back 50% of the bail-out. I'll leave the exact equation for tax people to figure out the details, such as including some incentive for early pay back. The idea is for the DEBTORS to pay half of the Government's costs (or the tax payer's costs), a fair share for all, to encourage all parties to work together. The DEBTORS may be mortgage or loan bearers (individuals) or corporations.

We need accountability to be included as an important element, since lack of accountability is a major cause of this big problem on hand.

Excessive Systemic Debt: The Primary Cause of Our Current Crisis

Is the huge debt the symtom or the illness? Should we look at who have contributed to these debts? The consumers are among the contributors. What about those big shot executives who make big risky deals with lofty ideas, using other people's money to pave their careers, leaving for greener pastures with the first opportunity, and leaving behind mountains of debts and other problems for others to bear? What about those 9 to 5 employees who come to work to get their pay checks and have no real contribution?

There is a recent article in the Time magarzine that talks about the corrupted public school of DC, with lots of apparent problems of school principals who would not administer, teachers who would not take responsibility or who have no abiity to educate, students who would not study, - - - .

The debt is the result of not being accountable, not accountable to oneself.

Wall Street Breakfast: Must-Know News

To encourage people to be responsible, we should have tax penalty and special points for future loans on load defaulters and tax incentive to people who keep their mortgages, to those who take on new mortgages, and to those who increase their mortgages, similar to tax on big cars and incentives for small/hybrid cars. Please spread this if you agree so that the politicians will do something.