http://www.zerohedge.com/article/leadin ... s-are-true
Imagine people thinking for themselves?
http://online.barrons.com/article/SB123 ... 00275.html
Define irony.... which is Money based on? Yea you can see problem and cost now...
Now imagine media with a clue...
Recall Keynes's erroneous prediction that within a century people's material wants would be satiated. When that happened, the demand for capital (to finance consumption) would plummet and rentiers (people who live on income from passive investments, such as stocks or bonds, and thus are hoarders) would be wiped out--a prospect that delighted Keynes, who looked forward to "the euthanasia of the rentier," though fortunately he did not mean this literally. He questioned free trade--that holy of holies of conventional economists--by pointing out that a country whose people had a low propensity to consume could stimulate investment by depreciating its currency so that its exports were attractive, because that would encourage its industries to invest in producing for foreign consumption and therefore to employ more workers. The country would accumulate foreign currency that it could use to invest abroad--the policy that China has been following lately, with pretty good results. He even had kind words for usury laws, arguing that they had reduced interest rates and thus discouraged hoarding. He favored a heavy estate tax, reasoning that it would increase consumption by reducing accumulation for bequests. (The standard economic argument against the estate tax is identical--it encourages "wasteful" consumption!)
There are three reasons for a closed-end fund to sell at a discount from its net asset value: management incompetence, management corruption, or a fear that the fund has undertaken unfavorable speculations. Goldman Sachs partner Sydney Weinberg was asked why his company had formed so many closed-end funds so rapidly in 1929. His reply was: “Well, the people want them”
There was a telling moment in 2005, at a conference held to honor Greenspan’s tenure at the Fed. One brave attendee, Raghuram Rajan (of the University of Chicago, surprisingly), presented a paper warning that the financial system was taking on potentially dangerous levels of risk. He was mocked by almost all present — including, by the way, Larry Summers, who dismissed his warnings as “misguided.”
Washington ignored reality -"Paul Volcker, Stanford, Feb 11, 2005
A few selected excerpts:
"Altogether, the circumstances seem as dangerous and intractable as I can remember."
"Boomers are spending like there is no tomorrow."
"Homeownership has become a vehicle for borrowing and leveraging as much as a source of financial security."
"I come now to the heart of the problem, as a Nation we are consuming and investing, that is spending, about 6% more than we are producing. What holds it all together? - High consumption - high leverage - government deficits - What holds it all together is a really massive and growing flow of capital from abroad. A flow of capital that today runs to more than $2 Billion per day."
"What I'm really talking about boils down to the oldest lesson of financial policy in Central Banking: A strong sense of monetary and fiscal discipline."
We have years to go not month's. We are not advancing forward so observe that first.
On his trip to England in 1979, Deng Xiaoping learned why free economies were outperforming Russia and China, and he returned to launch the Sino-Capitalist Revolution which keeps astonishing the world even as faith in capitalism fades across much of the OECD. He had learned why Hong Kong, Taiwan and South Korea could keep creating jobs and wealth by rejecting socialism—whether on the Maoist, Bolshevik, or Indian models.) Putin calls the collapse of Bolshevism, “The greatest geopolitical catastrophe of the 20th Century.” It was certainly bad news for him and his fellow KGB officers, but they regrouped amid the chaotic Yeltsin era and eventually took control of Russia. The KGB were the Jesuits of Russian Communism, and they worked loyally to advance the Kremlin’s goals. But their relationship to the Party was—like the Jesuits’ relation to the Vatican—at times problematic. Example: Khrushchev once claimed that he had personally shot Beria, the KGB leader, who wasn’t deemed sufficiently submissive to the Central Committee, (although the later version was that he’d died before a firing squad). Like the Jesuits, the KGB considered themselves the elites, and remained loyal to each other. Now that they are the ruling class, they no longer have to answer to bureaucrats and theorists.
Obama may fear serious voter backlash about the scale and wisdom of the new programs being legislated, but at least for now, he doesn’t need to fear the Republicans. The Republican Party is leaderless, and frequently clueless, so Obama doesn’t need to be a Roosevelt or Reagan to stay on top. Principle in mortgages that dates back to the 14th century and the emergence of Courts of Equity. (That’s where the word “equity” comes from.)Equity was based on the Chancellor’s religious-based concern for welfare of people of the middle- and lower-classes who suffered under the rigors of Common Law. If more US courts decide that those ancient protections for homeowners need to be protected. As we learned from the aftermath of the Midnight Massacre, commodity stocks can be savaged at least as ruthlessly as other stocks when the margin clerks take charge. However, owning the shares of the companies which own the resources that China, India, Korea and other major new economic powers need most is, surely, the soundest of long-term-oriented equity strategies.
http://econompicdata.blogspot.com/2010/ ... force.html
Think about this. In January 2010, almost 3 more people out of EVERY 100 that can work, are no longer even looking and more than 6 more people out of EVERY 100 that can work aren't as compared to the workforce in January 2000.
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