SBgal

Goldman's Hubris

If making money in the financial markets was like scooping up candy from a busted pinata, there would be no issue. The point of the party game is in seeing who can grab the most of the spilled treats, and all that is at stake is having more or less of something that is easily and inexpensively purchased. But, the money Goldman takes in is from college endowments, pension funds, retirement accounts, real estate investment. The ability to educate, pay bills on time, and enjoy life is transferred from us to them. You might argue that there is nothing wrong with hard work yielding huge rewards and I would agree, if everything was on the up and up. Thanks to Goldman Sachs, Wall Street has become less of a free market and more of a casino--where the House provides a lavish environment and allows just enough select few to win spectacular returns that the rest of the participants think it is possible to game the system. In reality, the House rules the game. Gamblers in Las Vegas who lose have only themselves to blame because it's common knowledge that they are playing against a stacked deck. But, when we have the expectation of a fair market, rigging the market is deceptive and wrong.

$59 Billion Dubai Debt Default Could Have Much Wider Implications

If this article is correct: www.economywatch.com/w... India is Dubai's #1 bilateral trade partner and China is the #1 source of imports. What then will be the effect on India and China if Dubai defaults? If this is correct: business.maktoob.com/2... then Japanese contractors are owed billions of dollars. If Dubai is running half of Australia's ports: www.stuff.co.nz/busine... then Dubai's default reaches to the other side of the Earth. Globalization means that each country's economy is inextricably linked with all the others. Can one country fail without starting a global chain reaction?

Structural Unemployment: The Only Cure

Enlightening article! It explains what I've observed in California--that there is an avalanche of Craigslist postings for part-time work. I'm sure this appeals to businesses as they don't need to offer health insurance and other benefits and they can hire and fire part-time workers more easily. It sucks for those looking for work because the pay is usually less and doesn't offer security. Also, almost everyone I know here, including myself, have taken pay cuts of at least 10% with further cuts looming if deflation takes off.

The Looming Threat of Peak Water, Part II

Absolutely spot on. For the last two years, I've been transferring what little stock holdings I have into water: PICO, BWEL.PK, ARTNA, CCC, MPR and I have a solar distiller to convert sea water into potable. I'm not a survivalist nut, just a realist. Wars will be, and are, being fought over water. There's always a natural resource behind every conflict--like the water that the Gaza strip holds (ngm.nationalgeographic...) Here's an article from the Boston Globe about water and investments: www.boston.com/bostong.../.

No Rest for the Economy's Wicked Parties

Thanks for telling it like it is. In all seriousness, where can one emigrate in this world with civil rights (this eliminates China), clean water (eliminates half the geography of the globe), and where one won't be affected by the maelstrom that will develop when the US implodes? I live in California, the 5th largest economy in the world and we are essentially bankrupt. Everything seems fairly normal, but there is a sense, for those of us who watch economic trends, that the "big one" is coming--and I don't mean another earthquake. What should the "average joes" and "janes" do?

Qualitative Easing: Shock and Awful

Attn editor: "Qualitative Easing: Shock and Awful"
"Qualitative" or "Quantitative"?

Sports Illustrated Swimsuit Indicator

Things must be awfully slow around Bespoke Investment for them to have time to waste on such foolishness.

Those Who Don't Learn from History...

I applaud your courage and integrity. I wish you could name names so we could avoid specific companies.

Unfortunately, these "dinosaurs" could care less--like the investment co. CEO's--they'll keep their personal millions and go on to future jobs.

Why were we so worried about terrorists? Harvard-educated, greedy Americans brought our country to her knees.

News Flash: Major Market Turns Aren't Announced In Advance

I bought my first house in Venice, CA in 1983 during a falling market for $160K. Six years later it was worth $350K. Two years ago I moved to Santa Barbara from Ventura and read the advice of the few contrarians who were sounding the alarm on future house declines, so rented out my home and rented here. Everyone thought I was nuts because prices were soaring and popular sentiment was that prices would never come down because the supply of houses was limited and the population increasing. Now Santa Barbara/Goleta is down 29%. At the end of last year, I read contrarian articles on Seeking Alpha on the coming stock decline--once again during a strong bull market. I listened to the contrarians, sold most of my stock and bought smaller positions (from advice found on Seeking Alpha) in POT (almost doubled now) and AAPL (up 21%). In economics class in college, I read good advice that has served me well in the many years since then--when everyone's gung ho and sure the current boom will never end--get out quick! When everyone turns glum and denies any glimmer of hope--jump in! I'm in the market for a house and I'm seeing nice properties with tons of amenities at bargain prices. I wish I had a pile of cash to buy up rental property here on the Central Coast because houses are popping up where the rental could pay the mortgage. Let the people who just woke up rant, quietly buy up stocks and real estate.