Thrift Maven

The Greatest Depression Is Coming

Spot on. So clear, yet grasped by so few. William Pfaff, journalist, wrote a prescient article during the G.H. Bush administration titled
"The Pauperization of the American Workforce." (Still available in his archives.) Here we are.


On Oct 17 07:32 AM LilBob wrote:

> To me this is fear mongering, brought on by a lack of willingness
> to understand what's really going on in the economy. During the Bush
> administration we had an increase in the concentration of capital
> in the hands of the wealthiest Americans, just like we saw in this
> country during the "Robber Baron" age from roughly 1895 to the early
> 1930s. In a capitalist economy, there are two kinds of capital: investor
> capital and consumer capital-we can also refer to these two types
> of capital as supply capital and demand capital. When capital becomes
> too highly concentrated in the hands of investors while working class
> wages stagnate, we end up with a situation where sales decline generally
> while new more aggressive investment schemes are fabricated to create
> the illusion of increasing wealth for the investment class. The only
> solution to this problem is for social phenomenon that increase consumer
> capital-restore the consumer base-thereby making it possible for
> businesses to keep their doors open. The reason we are in a recession
> is because of several years of misperception on the part of the American
> public-people believed that their wealth was increasing and loaded
> up on debt when their actual wealth-as measured in wages and ability
> (from say, job benefits) to access critical services (such as health
> care) was in steep decline.
>
> As long as there is a willingness to accept the reality of our situation,
> and to address the underlying root causes of the predicament, then
> any disaster may be averted.

More Bad News Bears / Banks

So now subprime borrowers are buying banks. Subprimomania
continues. U.S. workers have been pauperized over the past 28 years. Our society can no longer sustain what it did in the past.

7 Cash Rich Stocks Offering Stingy Dividends

Franklin resources returned $1,000,000 for every $1,000 invested
during an 18 year period for the great '80's - '90's bull market. It was the most successful stock of those years. It is far better to let them handle the money than to pass out a few paltry dollars here and there. Put ten or twenty shares in your Roth IRA, reinvest those small dividends, let Franklin do what it does best and you should have a wonderful return in twenty five years.

John Hussman: Fundamental Difficulties Have Deep Roots

Let's not forget Felix Zulauf, Barron's Roundtable, who expected in his yearly prediction, for the Dow to go to about 9,000 and then down to 4,000. His thoughts have been haunting me since January.

How About Sears Holdings as a REIT?

When Citi raised credit card rates on their former Sears Card to outrageous numbers, many of us closed our accounts.
American business is so corrupt. We have to act like decent citizens, even though we are not treated as such. Preserve cash. Force
deflation. Refuse hype.

Global Markets in Review: Think Rationally Ahead

The largest socialized institution in America is the Military.
A little socialism leavens the whole bread.

Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge?

ETF DHG holds some of these trusts. Good dividend, good discount,
sad history. It may revive handsomely someday. If you close your eyes and like getting paid (something) to wait, take a look at DHG.

Cramer's Stop Trading! Bull Run (3/23/09)

Franklin Resources - symbol BEN - turned a $1,000 investment into $1,000,000 over an 18 year period during the great bull market of the '80's - '90's. And that was before they had gone into China and India. It was the most successful stock at that time period. Putting 5-10 shares in a Roth Ira, reinvesting dividends, not looking at it for the next 20 to 30 years, not worrying, might provide a very interesting lump sum at retirement. "Many a mickle can make a muckle." (Old North Yorkshire saying coined by Joseph Addison during a financially bleak period.)

Markets Soar as President's Aura Fades

Obama will always be a breath of fresh air when we think
of the destructive, anti-intellectual, anti-good government, pro-nonsense Republican years. All we ever heard from the "aren't we wonderful crowd" was..."aren't we wonderful." Sadly, the economy and the markets
worldwide - could not disagree more.

The Bubble of Uncertainty Is About to Burst

It only took Republican politicians and non-governance 28 years to
destroy our economy and society. So bad, in fact, that even Lincoln Club members (stalwart conservatives in Orange County, CA) voted for Obama. Downward spiraling wages for working citizens, unaffordable housing for workers, userous credit rates, "lazy fairy" economics, McMansions being built instead of comfortable, safe housing for the masses, relaxation of health protection policies, lax gun control, lax border control, the rise of "Ineptomania" personified by Rush Limbaugh - the pied piper of the uninformed.

Patience is the third dimension we must learn to live in.

Doug Casey: What to Do in 'The Greater Depression'

And by the way - the upward spiral in oil began TWO WEEKS after
Bush's first inauguration and ended four months before the end of his
second term.

Doug Casey: What to Do in 'The Greater Depression'

This is rediculous. The Republicans dusted off the "Lazy Fairy" when
Reagan came in 28 years ago. Unions were busted, wages spiraled downward for the next 28 years, healthcare was never reigned in and every wronghead decision for the American economy and society was made under the Republican umbrella. Businessmen forgot who bought their widgets as the American workforce was pauperized.

In one of the great books on The Depression (Wm. Shier (?) - wealthy folks in that era were surprised to find that even they could not make money. No one had any money to buy stuff. So the great lesson for everyone is that poverty benefits no one. FDR's policies kept us going
for the past 65 years, but finally they could no longer balance the follies of our Republican handlers.

Doug Casey: What to Do in 'The Greater Depression'

This is rediculous. The Republicans dusted off the "Lazy Fairy" when
Reagan came in 28 years ago. Unions were busted, wages spiraled downward for the next 28 years, healthcare was never reigned in and every wronghead decision for the American economy and society was made under the Republican umbrella. Businessmen forgot who bought their widgets as the American workforce was pauperized.

In one of the great books on The Depression (Wm. Shier (?) - wealthy folks in that era were surprised to find that even they could not make money. No one had any money to buy stuff. So the great lesson for everyone is that poverty benefits no one. FDR's policies kept us going
for the past 65 years, but finally they could no longer balance the follies of our Republican handlers.

Ford a Likely Survivor of the Auto Industry Crisis

Ford has those wonderful trucks - from 150's to the huge tow trucks - plus police cars and terrific small trucks for businesses and cars for the rental industry. Their styles are picking up. I am seeing more and more of their small trucks in our neighborhood. They are on the right page with alternative energy vehicles.

Years ago, Grandfather ran into Henry Ford while walking in Manhattan. Ford asked him if he would like to put $1,000 into a car manufacturing company he was starting. Coulda, shoulda. Ford is cheap today.

Does Obama's Stimulus Plan Pass the 'Prudent Person' Test?

Dear Poor Dude:

We have been borrowing to live since the 80's. That is why David Stockman got in hot water for questioning Reagonomics.

Sincerely, Poor Dudess


On Feb 07 07:05 PM Poor Dude wrote:

> America has become a subprime borrower. In light of what has happened
> to everybody with real estate, who is going to lend to us? Not being
> a student of world finance, I'm not sure what happens when a country
> that must borrow to live can no longer borrow. But I suspect it's
> not pretty for its citizens. How do we protect ourselves? Buy gold?