LariAnn

Cash for Clunkers May Cost Up to $45,354 Per Vehicle

IMHO, the incentive is actually a gift to the dealers/auto companies, not the auto buyers. Why? Because, as we all know, the value of a new car drops precipitously once the car leaves the showroom floor. This loss hit is taken by the auto buyer, not the dealer. Also, if the auto was financed, the buyer is now paying interest on this loss as well. The dealer doesn't take a loss at all. So the dealer/auto companies got the $3500 or $4500 per clunker; and all the auto buyer got was $3500 or $4500 of debt as a part of the total cost/indebtedness incurred from the vehicle purchase.

Wall Street Breakfast: Must-Know News

The more I observe and see what kinds of strange decisions are being made by the government about the economy, the more I wonder if those who are making those decisions know something about the future that we don't. I mean, why steer the country towards certain economic disaster unless . . . they know reasons why it won't matter after all. Think about it. We could all just be a bunch of mushrooms, kept in the dark and fed BS . . .

Could the Dow Sink Another 50% by 2012?

IMHO, all it will take is a fairly major natural disaster (catastrophic hurricane in oil-producing zone like the Gulf of Mexico) or political action (nuke test by Iran) and the markets will be thoroughly roiled. The world economy is not stable by any means. Momentary euphoria aside, all it takes is one good reality check, and like the results of a 2 x 4 smack to the head, people will wake up and smell the burnt coffee. At that time, hope you have reduced or eliminate your debts and have hard assets or goods of lasting value that you can fall back on. . .

Wall Street Breakfast: Must-Know News

"A day late and a dollar short . . ." R. I. P., auto companies!

Market Summary: Good Riddance to the Worst February on Record

Farmland, food and ammo - some of the best investments you can make now if you know how to farm and have the right weapons!

Obama Throws $75B at the Housing Crisis

I wonder how many people will really be helped because this is not the first foreclosure crisis remedy advanced. The last ones only helped a few hundred people because of the fine print and extensive red tape. Meanwhile, jobs continue to evaporate and the pressure to default on all kinds of debt is on the rise. IMHO, the intrinsic problem (sharp decrease in new businesses and no driver to invest in new businesses) has not been addressed.

To use computer terminology, what is needed is a "killer app" for the economy, something like the expansion of the internet or the dot.com revolution, only one that won't just be a bubble, but a long term growth enhancer. What made the personal computer business take off was the development of "killer app" software programs that were so innovative that people would buy a computer just to be able to run the programs! The only way government could help is to encourage the killer products and services to be taken out of the vaults and put on the market. Otherwise, everyone will continue sitting on their money and the economy will continue down an ever-steepening slope.

Is the DJIA Heading Towards Zero?

Fundamentals are going to be less important unless a company has low debt, is debt free, and/or has very low debt needs. All others are going to be pinched so hard that their fundamentals will suffer, causing further declines. What has begun is known in network parlance as a "cascade failure". A threshold is passed where when each segment collapses and the system tries to reroute, it causes yet another segment to collapse, then another, and so forth. Hold onto your butts, folks!