Smart. The assumption to pull future demand forward was that growth could and would continue forever, that population would grow by leaps and bounds always, so there'd always be more and more consumers. These assumptions are the products of very feeble, uninformed minds. It is not possible. The realization that the country has it's best days behind it is hard to take. People conceptualize, and justify with fancy theories, to no avail, only to be proven wrong again... then back to the drawing board to fantasize.
Dave Mackel you're right on stats. But the problem is the media's REPORTED stats. They report "core" inflation which excludes your mentioned items, and they use U-3 unemployment of ~8%, not the broader, more accurate measures that ARE kept by BLS. We don't yet have solid figures for the underemployed because it's hard to measure. The diligent investor firms (read the ones that win) goto the BLS reports directly. They paint a pretty bad picture, with U-6 unemployment, for example, at ~15%.
In some sense it's the media's fault for not reporting the truth... I am undecided whether this is intentional and insidious or just ignorant.
retermite--gas in my area 1 year ago cost $3.75-- $4.00... now $325. I shop every other day for food and am very observant of prices, no inflation observed there. I luckily don't use the healthcare system or education systems and I am sure there is inflation there.... but we're talking about increased demand driving the forces there, not monetary and fiscal policy.
David de los Angeles, you're spot on. Deflation is dragging hard, and without protracted emergency FED measures, we'd be slammed down on asset prices. Think Japan,,, they are our twin, they stuffed all their future income in their houses as well... back in the 80s. I wish the FED were not created, Greenspan really messed this one up, big time and for a long time.... and he admitted that publicly.
I agree that demand is dwindling or at best idling at a low level this is reflected in low velocity and it's what happens when capital is allocated improperly on a massive system-wide scale and deleveraging must occur (in this case housing). But the money the FED shovels to treasury by the boatload is definitely spent. It goes to pay employees in government, government contractors who pay their employees and vendors, etc... Thus it is spent in the real economy, with treasury being the intermediary.
Wall Street Breakfast: Must-Know News [View article]
Iron Hamster, the lines between lib/conservative, are too blurry for me to see. That's a rather naive view of politics. A vs. B--it just doesn't exist, it's far more complex than your simple distinction suggests.
Wall Street Breakfast: Must-Know News [View article]
gggl, see my post, I agreed gov't was crooked, which means corrupt, which means I don't think there are any saints there. That includes GOP Congressmen, Dem. Congressmen, and the whole lot of 'em. They are selling the country down the river. People deserve better, but to get into that position, one needs to lie to the electorate because that's what the electorate wants to hear; namely that they can grub at the public trough like pigs and not pay for it because magically someone else does.... a lie which I am unwilling to tell, or else I'd throw my hat in the ring. I think Mitt and that other idiot Paul Ryan were the epitome of this. At least Obama talks about cut backs, higher taxes, all of which is necessary.
Wall Street Breakfast: Must-Know News [View article]
JC, there is no scandal, suspicious applications deserve extra-scrutiny. If there is a scandal it's the tea party folks trying to embarrass the IRS/ admin, etc.... One doesn't need to file for exempt status under their circumstances. Last night's Colbert show, makes a hilarious mockery of the whole thing--I would recommend watching the clip. Don Quixote, charging at the non-existent windmill.
Wall Street Breakfast: Must-Know News [View article]
The roles of Chairman and CEO should always be split if one wants prudent corporate governance practices. The BOD represents the shareholders in selecting, terminating and managing the officers. Allowing Chair and CEO to be the same person, is like allowing a 7 year old to babysit themselves. And trust me, at least some officers need to be babysat. The reason it's not in the corporate law of DE is they'd scare companies out of their traditionally management-friendly state. A change is necessary. There are certain folks (Peter Lynch comes to mind) who think one should not invest in a company with incestuous management/ BOD.
Wall Street Breakfast: Must-Know News [View article]
Amen on everything especially the crooked part--was the government always so crooked?? I believed otherwise for some time, and I think that changed when Bush took office in the questionable election. Avoidance=100% legal. Evasion=illegal.
Wall Street Breakfast: Must-Know News [View article]
blueokie, rates are irrelevant except to those who think of payments in monthly, weekly or daily terms. The aggregate asset cost (including principle and interest, maintenance and taxes) is the paramount issue--so what you bid for an asset is crucial. And right now, the housing market aggregate asset cost is artificially buoyed.
Google's (GOOG +0.1%) sell-side PTs have been surging as shares continue trading above $900 following a torrent of I/O news. The I/O news demonstrates "Google remains one of the most innovative and forward thinking companies of this generation," gushes Topeka, which has raised its PT to $999. Baird's PT is now at $1,025, and Argus' at $1,065. In some respects, the mood resembles that surrounding Apple not too long ago. [View news story]
Cheaper R&D and capex and higher margin over the long term usually with non-device companies.
Google's (GOOG +0.1%) sell-side PTs have been surging as shares continue trading above $900 following a torrent of I/O news. The I/O news demonstrates "Google remains one of the most innovative and forward thinking companies of this generation," gushes Topeka, which has raised its PT to $999. Baird's PT is now at $1,025, and Argus' at $1,065. In some respects, the mood resembles that surrounding Apple not too long ago. [View news story]
Am I correct to think they haven't split yet? They came out of the box around $90.
Wall Street Breakfast: Must-Know News [View article]
There should be some sort of unified / worldwide-way of dealing with this issue. The tax havens are really hurting other countries' tax revenues. I recall Tyco was Bermuda-based, and seemed to never pay a dime to the US gov't., except out of the employees pockets. Nice that the US taxpayer provided them with such corporate welfare. There are plenty of other examples.
Wall Street Breakfast: Must-Know News [View article]
Those MLPs are almost precisely the mix I have in my personal holdings--best assets in the biz IMO, and the biz takes scale, so the larger ones are probably your best bet. EAC looked like a blow off top for sure. Of note: I also have a strategy to go long their JV partners. Have made some very nice gains with that one. Most recently KMP acquired its JV partner, the little known and relatively small, CPNO about six months ago--those guys, and PAA are acquisitive, and JV partners are a logical best choice.
Why Inflation Never Came [View article]
Why Inflation Never Came [View article]
In some sense it's the media's fault for not reporting the truth... I am undecided whether this is intentional and insidious or just ignorant.
Why Inflation Never Came [View article]
Why Inflation Never Came [View article]
Why Inflation Never Came [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Google's (GOOG +0.1%) sell-side PTs have been surging as shares continue trading above $900 following a torrent of I/O news. The I/O news demonstrates "Google remains one of the most innovative and forward thinking companies of this generation," gushes Topeka, which has raised its PT to $999. Baird's PT is now at $1,025, and Argus' at $1,065. In some respects, the mood resembles that surrounding Apple not too long ago. [View news story]
Google's (GOOG +0.1%) sell-side PTs have been surging as shares continue trading above $900 following a torrent of I/O news. The I/O news demonstrates "Google remains one of the most innovative and forward thinking companies of this generation," gushes Topeka, which has raised its PT to $999. Baird's PT is now at $1,025, and Argus' at $1,065. In some respects, the mood resembles that surrounding Apple not too long ago. [View news story]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]