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Airlines: Some Costs They Can't - And Shouldn't - Cut

Interesting article but while wages appear to be low - what about all the work rules? This is often forgotten unitl you are management trying to schedule and also figure in retirement packages with health. Aren't JetBlue and Southwest different -nonunions? Same for auto worker - it isn't only the actual hourly wage but the restrictions like lack of cross functionality ie some airline pilots help with the luggage or ticketing?

It would be interesting to calculate how much the mechanics make and compare education and training.

Dow 10k: The Higher They Rise, The Harder They Fall

Very good article - it gets back to the decoupling argument of emerging markets - and you are right there is no evidence whatsever to support the inter markets pulling the US train at 25% of the world economy based on 70% consumerism. If you look at many stocks you will see little volume but a tickling of higher prices for many months. There is of course the buy and hold crowd still there and too big to admit mistakes invest crowd waiting for the eventual return they are not selling which allows this tickling of prices. But after a 40% rebound - well .

I was hoping you could be more aggressive in your positions - like selected stocks short if this is indeed a multitrillion dollar vapor bubble. Certainly you can find us something and yes timing is crucial but right now the majority of your cash and bond funds are losing 15-20% against other currencies.

Jim Rogers on the Next 10 Years

As with everything there might be some hyperbole. At the very least we should look at English, Mandarin and Spanish as covering the largest section of the world. The key to Mandarin is watching it become important for other Asian countries - which it is. Mandarin websites and programming are starting to make inroads.

We cannot ignore Rogers comments -the problem with the US is we are far more fragile with our large consumer debt, massive structures built for gas powered vehicles, poor cities due to politics and the rise of our public sector workers to a centralized command economy.

China is the US of the 1940's- at times will make mistakes but the numbers are too big -tremondous work ethic and pride. Go back to the 1830 and China had Britain importing and taking all it's silver currency and together with India a large percentage of the worlds GDP. The last 50 years have been a hiccup. If you have a scenic home in a posh community learn Mandarin to close the sale in the next 10 years.

Since the American electorate now have great number of people who are disenfranchised, retired, or not working they vote people in who favor eradicating the volatility of the private sector at the expense of their currency and their next generations wealth- ala Europe -it makes sense to be involved in the commodities business like the Aussies,Canadiens, Norwegians-oil, Brazilians.
It will take us back to the 1810 economy with Britain and don't forget by then we will have the windmills to round out the scenery.

Marc Faber: Equities Safer than Dollars

Acceptable inflation 2-7% annually and you have the case for commodities and export based countries. Any extreme devaluation/inflation will drop emerging markets like a rock which in turn create problems for their currency.

There are many nations that have a significant portion of their economy aimed at our markets - it is not going to change with a collapse in the US economy - it might even be aggravated. I think the false credit prosperity brought a small decoupling of emerging markets. But unfortunately the most unbearable argument is that we are all in this together and commodities such as metals and oil require growth in demand- not one time keynesian projects for simply sustaining current demand.

Is the U.S. Dollar Finished?

It hinges on the amount of decoupling of equity markets and related economies with the international community. So far there is still a correlation. What the writer fails to bring up - is who says most people have actually moved out of the dollar yet? The sentiment might be bearish but do most Americans and small country investors willing to park in other currencies yet? Don't see it.

I constantly read about the demise of the dollar through foolish monetary policy but aren't all the foreign governs guilty of purposely keeping their own currency low to target exports here to the biggest market in the world. It is this paradox that keeps it a relative stalemate. This will continue UNTIL the intern countries start to develop more independance - is this occurring? Possibly with commodity boom- but it is best to see this exhibited in diversions in equity valuations between the countries.

How Did Vermont Avoid the Mortgage Meltdown?

Vermont has about 700k population and that means very few housing structures to begin with. With it's scenic pastures it is 4 hours from 16 million people in both NYC and Boston. As a result there are many "retired" people on gentlemen's farms, outsourced migrant labor force for tourism and hobbyists. Being the Martha's Vineyard for winter escapes - (keep it beautiful and eradicate ugly business merchants) one can see how it can afford to keep it's unique bias. It has punitive taxes and major contributors to "special" causes all living and surronded in a Norman Rockwell setting.

Having said that of course if national policies were enacted along Vermont's policies this supposedly forward thinking prudent lot would probably have a field day suing the big banks for "redlining" , racial discrimination, unaffordable housing stock, disenfranchisement and ignoring govern lending agencies. The housing prices have a much lower beta. It is beautiful but similar to Martha's Vineyard in duplicity.

'Blue-Dogging' Health Care

I find it amazing that in a financial column there is partisan prose concerning how much govern involvment there should be in mandating health insurance for all. The basic objective of this so called "reform" is to adulterate the free market- otherwise you would not have to "mandate" it and have it conscripted into law.

In the free market there are policies that are one tenth the cost of your average Cobra or group insurance - 1/10! That is with one simple fact you have a 10000 deductable. Here (like a 2000 deductable in auto) you have a free market - take insurance against what you cannot afford. Look at the vision market unbelievable drop in fancy eye doctors - go to Walmart for glasses.
But in some states you are forced at tax time to disclose and be penalized if you are being assessed in a free market Under the new government programs that wishes to include societies outlying costs as people fly in from around the world and throw their passport in the trash can.

This national effort is using the insurance scheme to back people into socialized medicine. I thought people distrust politicians - these creators of the bill will not be subject to this risk pool of a "ship of fools". Everything will be political - who you know what hospitals contribute to whose campaign etc.
It couldn't get more political when viagra and sex change operations are reimbursed and hearing aids are not.

It is classic since we have a politicians that sends their kids to private schools and works against charter school funding.

What is so hard about showing the consequences of this reform by pointing to foreign countries that already have done this? What are their issues and why the rush?

Effects of the Stimulus Package: Felix Salmon Is Uncharacteristically Wrong

Forget about the debt required or deficit or crafty political timing or political earmarks or favored construction projects that are anti global warming such as highways.

The logic that a government issuing checks out on a project basis does not and will not inspire business confidence or increase discounted cash flows beyond the scope of the project, lead to productivity enhancements even with alternative energy, nor could it ever match the scale required to rival the private sector.

The idea is that it will inspire private investment but any company relying upon government support rarely gets investor backing unless it pays a dividend. Add in the impact on the currency and the international investors are clearly more wary.
At the microlevel the multiplier effect is weak or nonexistent. With all these economists we need greater transparency in how markets develop.

Dollar's Days of Dominance Are Over

Very strong argument and when you compare the USD against the entire BRIC it is very possible that the dollar will decline - but that currency doesn't exist. The currencies are still single country currency all with more dubious stability. Maybe the talk is of a basket of currencies merging like the Euro. This might take more time than one thinks - So any suggestions when the engine of the world declines rapidly?

6 Ways to Short the Obama Health Plan

Why do anti pharma think a lower capitalization and reduced customer (gov) revenue is going to spur innovation in this country? Now big govern advocates want to determine when a product should lower it's price and be "nice" and quit running the pipeline into the ground. Did it ever occur that these future revenue streams of no competition is what spurs the billions that are lost in futile failed phases? Why not provide a tax credit against all failed drugs?

Commercial Real Estate moguls get free depreciation against an appreciating asset, oil and gas get spec tax treatment and Disney gets special patent consideration and nonprofit get to invest off of their charter in speculative ventures.

But when the serious scientists that are trying to provide important cures well then everyone should tax

15 Possible Healthcare Breakout Stocks

You want us to invest in healthcare - but you don't know what to make of a very controversial plan that has been in the news since the campaign and will require a political majority. We have heard from every corner that this is a wonderful plan that will reduce costs. That should impact some of these stocks. I think the best advice is to follow the money on this one.

California's Default Is Certain

The idea that the US poor is poorer than other nations has been proven false by a study that the poor live better than the average person in Sweden. Any study measuring wealth is flawed since can't measure asset value in terms of primary homes and assets in foreign countries (illegals) black market incomes, debt levels (college loans) market value of farms and houses, trust funds, options, and public pensions due the individual (should be measure like trust funds), and part time salaries. This same bias methodology in measuring the 40 million "uninsured".

Your argument that high seven digit incomes has no support statistically. You could do an immediate asset tax of 50% of the every millionaire and you wouldn't come close to closing the gap even for a month. Show us the numbers of how the capital will stay in place for this new asset tax and show us how it will close the gap not just this year but as a sustainable revenue stream.
Why is this idea of rich so hard to determine before the elections it was indicated as over 250k in income but most deductions phase out after 150k.

The idea under liberal rules is that this wealth can be regenerated in a few years - when it sometimes takes generations of low taxes. The wealth- what is left - flees empowering the labor party even more- maybe this is Canada? With the productive savings element gone the disparity decreases and the poor become even more government dependant and poorer. I believe I saw after 40 years of reducing disparity in Cuba that the leader was listed as one of the wealthiest people in the world. Did Russian after 40 years reduce disparity or are they left with no middle class?

What ever happened to not taxing dividends (have the workers of companies get more return for their labor) and having interest payments on debt not tax deductable? Who will crush this idea- liberals. Why are we promoting massive debt at corp levels and presonal levels? Why do colleges extends loans that cannot be repaid? Why is the housing market similar to the 1929 stock ownership plan with 10% down and massive debt?

California wages, public pensions and housing markets are very highly priced - the equity that people have pulled from there is enormous. It is time to end the disparity in Calif. vs the rest of the states and have their asset prices and program costs equal to the rest of the average prices in the remaining states.

It is time to end the enormous wealth gap created in Calif as opposed to the other states and make them pay and not slip out due to the political importance of Calif to the Democrat party.



On Jun 28 03:11 PM Buckoux wrote:

> Sounds like you've got a real bad case of class envy, Jeff.

Dr. Stephen Leeb on Commodities and Inflation - Is He a Genius or Alarmist?

But can anyone show me where they have seen a "decoupling" of foreign nations in regards to the economy? All of commodity pressure requires buying demand and consumption. I wish it were true that the investing world can compartilize into mortgage companies in Alberta or copper miners in Peru or builders in China. But if the last downturn in Nov showed- I simply don't see any evidence whatsoever.

The commodities the last few months went up with the US uptick - there has been no decoupling.

I hope that other nations can work around us - which would be beneficial but unfortunately I don't see a powerful world GDP without us. Maybe other nations should be careful about moralizing to us about overconsumption.

What's Killing the U.S. Dollar and Its Impact on Income Investors and Markets

Debt, bankers, govern debt? Which one?

There are a couple ways to increase liquidity - issue debt or attract private capital through equity. Why do we have a tax structure that at every level promotes high amounts of leverage as opposed to equity participation? Even if house purchases require 20% that is far too much leverage along tax deductable as well. Corporations get a tax break from debt - where equity holders get double taxed.

Who voted against the tax relief for dividends. Can the mainstream media close the loop on this? What happened to making equity at the very least on par with the debt - (tax deduction for dividends). Equity is volatile but less troublesome than debt from a structural point of view as we are going to find out with a debt we cannot get rid of. And the argument that equity holders are in bigger trouble than debt right now is specious since it was general debt level that brought us here.

Maybe people should ask themselves do people who discourage workers from investing in their own company (401's are really decorative from meaningful investment) or their own country's means of production nervous that they will be held accountable for general domestic economic performance?
It is vote that needs to be explained I am sure the banking industry has something to do with it but maybe the other votes need to explain this philosophy of taxing the worker from participating in a companies rise in value.

How to Profit from the Commercial Real Estate Fallout

Why save the landlord when every capital market from coast to coast is telling you that they are overcharging. The rental rate is simply vastly overpriced. Retail should survive when their rental rate is reduced by 60%.

Retail will not grow fast but people need to shop. Is our govern going to waste money by propping up comm real estate landlords so that they can charge 70 sq ft? It appears so. There is no way out - they cannot easily change the usage of the facility. Give up - let a judge decide the real rental rate and fill the mall. Shopping goes on in poorer countries - it just needs a much lower base.