Freaky Friday Potpourri: Conversation with Mr. Practical
By Todd Harrison Sep 26, 2008 8:45 am
Words of wisdom to help us through this.
“The next time you feel that irresistible urge to get into something because everyone else is, please just stop and think for yourself. Think deductively and put the facts together, as best you can, and draw your own conclusions.”
--Mr. Practical, February 15, 2007
Bob Segar once sang that seeing old friends is good for the soul. In today’s world, it might just help define your fate.
The construct of the Minyanville is simple. Surround yourself with people you trust who have skill-sets that complement your own and attempt to serve the greater good.
Over the years, our community has evolved into the trusted choice for the financial voice, providing the information you need to know before you know you need it.
It has created a global network of like-minded individuals who believe there’s a better way to do business, all you have is your name and your word and you can learn a lot about a person by looking them in the eye.
I was fortunate to be surrounded by people who believed in what we were doing and how we were doing it. While they are too numerous to name, one person in particular stands out. He was there from day one offering steady, guiding wisdom that ushered me through some particularly tough times.
His name is Mr. Practical and Old School Minyans know him well.
On Wednesday night, I connected with Mr. P to get his take on the current state of affairs. It’s a complicated world, as we know, and I was anxious to hear his view. I share a portion of our conversation with hopes of provoking thought within the Minyanville community.
Toddo: So, what’s the good word?
Mr. Practical: I hope everyone is well, and well aware of what is going on right now in
Toddo: I believe many are, if the emails and feedback are any indication. I’m not interested in looking back as folks need guidance on the road ahead. There are a lot of confused people out there—including our policy makers—as the stakes have never been higher.
Mr. Practical: The government continues to change the rules, as they usually do under times of stress. I’m happy, however, to share my thoughts on where I think we currently stand.
Toddo: Hit me, cookie.
Mr. Practical: Hank Paulson and Ben Bernanke have asked for too much “money” with too little detail. They have also asked for immunity from review. This is very strange. Why not implement their plan with clear guidelines, accountability, and transparency? Nothing really happened from a few weeks ago to create this sense of urgency.
Frankly I think the public is giving much too much trust to a few men who might not really understand what they are doing or worse, have a different agenda than protecting tax-payers.
Perhaps they are trying to protect our Asian lenders instead?
Or perhaps it is because of the Fed’s complicity in our current state of affairs and thus their desire to bail out the equities of banks?
Whatever it is, on its face they plan to assume ownership of debt at a price much higher than would clear the market. This is not appropriate. When the government assumes the market is not pricing assets properly and uses taxpayer money to bid them higher, that is socialism, pure and simple.
But their argument to do so is flawed. This is not merely a liquidity issue as they profess: there is not enough capital to support the debt.
That is not a liquidity issue, that is a solvency issue.
To ignore that economic implication is naivety at best: as the government re-prices assets, risk will grow, not be reduced, and growth will slow. So any plan that injects capital into insolvent banks at the very least needs to offer equity to the fund they plan on creating.
I am not advocating what they are doing. I am pointing out the very least that should be done if they are going to go this route: minimal and staggered funding, full transparency and accountability, and dilution of equity from failed institutions.
But their goal—as you’ve talked about—seems to be to spur stock prices higher through their ban on short selling, which is shameful, and using taxpayer money to transfer profits to financial companies.
That will only protect the wealthy establishment at the expense of the middle class, as any bailout tends to do.
The middle class will pay for this in either higher taxes or a much lower dollar in the future. Their claim that the taxpayers may actually make “money” out of this is ridiculous.
No positions in stocks mentioned.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
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Reply
2008-09-26 09:18:36
I love that guy
I love that guy. Maybe JS can run for president. He'd even offer the guarantee of only one term.
2008-09-26 09:19:58
Timing
As Mr. P says, at just the right time, one must buy Gold or even raw property. So it all boils down to the $100 Trillion dollar question.
When to jump.
Now we know how those last desperate people felt on the Titanic when the last life boat was off and they looked over the railing at the cold sea below.
While we really won't know until it's time, I can't think of a better place to be than here, waiting with some of the smartest minds on or off Wall Street to pull the trigger.
Why? Because I have no faith that our government leaders will do the right thing. Their interests are not aligned with the majority of America. All those corporate political contributions made over the past 20 years were intended to pay off at this time, this place. This is obvious to anyone with eyes.
As I've said before, why do we expect our leaders to do the right thing during times of high stress when they won't during "normal" times.
As Mr. P says, risk is high.
When to jump.
Now we know how those last desperate people felt on the Titanic when the last life boat was off and they looked over the railing at the cold sea below.
While we really won't know until it's time, I can't think of a better place to be than here, waiting with some of the smartest minds on or off Wall Street to pull the trigger.
Why? Because I have no faith that our government leaders will do the right thing. Their interests are not aligned with the majority of America. All those corporate political contributions made over the past 20 years were intended to pay off at this time, this place. This is obvious to anyone with eyes.
As I've said before, why do we expect our leaders to do the right thing during times of high stress when they won't during "normal" times.
As Mr. P says, risk is high.
2008-09-26 09:31:02
This is why we come here!
A great article, thoughtfully presented. I am incredibly grateful to have stumbled across Minyanville last year, and it's articles like this one that reaffirm my appreciation for the community here.
Now, I would only like to ask that the site dig deeper into contradicting viewpoints - I find that I so strongly agree particularly with Mr. P that now I'm getting a little concerned about my "confirmation bias" getting the better of me. Suggestions (other than reading, say, Kudlow or Krauthamer)?
Maybe it's really crazy to ask for that especially since I've flamed a couple folks who offer opposing viewpoints but I thought I would ask all the same.
Now, I would only like to ask that the site dig deeper into contradicting viewpoints - I find that I so strongly agree particularly with Mr. P that now I'm getting a little concerned about my "confirmation bias" getting the better of me. Suggestions (other than reading, say, Kudlow or Krauthamer)?
Maybe it's really crazy to ask for that especially since I've flamed a couple folks who offer opposing viewpoints but I thought I would ask all the same.
2008-09-26 10:10:10
But wait Halloween and Christmas are comming!
I remember my father, a veteran of WWII, Korea and the Cold War, telling me that the Soviet Union was no to be feared because they would collapse under the weight of their own bureaucracy.
The USSR made war stuff which contributed nothing to their economy. The only way that could have paid off would have been through war.
When that collapse eventually happened there was no surprise for me because his description was so eloquent and simple; they export money and import everything else.
When I see the similarities between the US and the former Soviet Union I see a similar fate because we also export money and import most everything else. The only way that could have paid off is with the growth of our economy keeping pace with the creation of credit.
The USA made credit for the purposes of consumption which contributed much to our economy but much, much more to those we import from.
China, being the company store to the USA could very well be calling the tab.
Sooo for me to contribute to the salvation of the USA I will stop shopping at Dollar Tree and hope everyone else does the same.
But the two largest holidays in the USA are Christmas and Halloween so in honor of those two great days we should all postpone our "postpone to shop" until they have passed.
Just one more party . . . .
Minyan Terry
The USSR made war stuff which contributed nothing to their economy. The only way that could have paid off would have been through war.
When that collapse eventually happened there was no surprise for me because his description was so eloquent and simple; they export money and import everything else.
When I see the similarities between the US and the former Soviet Union I see a similar fate because we also export money and import most everything else. The only way that could have paid off is with the growth of our economy keeping pace with the creation of credit.
The USA made credit for the purposes of consumption which contributed much to our economy but much, much more to those we import from.
China, being the company store to the USA could very well be calling the tab.
Sooo for me to contribute to the salvation of the USA I will stop shopping at Dollar Tree and hope everyone else does the same.
But the two largest holidays in the USA are Christmas and Halloween so in honor of those two great days we should all postpone our "postpone to shop" until they have passed.
Just one more party . . . .
Minyan Terry
2008-09-26 10:22:05
You've restored the faith a bit...
Todd -
Thanks for this article. I was pretty disillusioned with the 'Ville last night after the articles yesterday appeared to be mostly pro-bailout.
Personally, I'm okay with honest differences of opinion on these type of subjects. Debate is good. However, by last night, given the tone of the articles, I was wondering if the free market was truly dead.
Mr. Practical's interview was the kind of balance I'm looking for in a financial site. It also doesn't hurt that I agree with what he said. :)
Anyway thanks again - here's to hoping we can minimize whatever damage must come next.
Thanks for this article. I was pretty disillusioned with the 'Ville last night after the articles yesterday appeared to be mostly pro-bailout.
Personally, I'm okay with honest differences of opinion on these type of subjects. Debate is good. However, by last night, given the tone of the articles, I was wondering if the free market was truly dead.
Mr. Practical's interview was the kind of balance I'm looking for in a financial site. It also doesn't hurt that I agree with what he said. :)
Anyway thanks again - here's to hoping we can minimize whatever damage must come next.
2008-09-26 10:26:50
This is why we come here!
I agree that it is always good to see the other side of the trade as Toddo says, but the problem is you are likely to get the opinion of people that never saw the problems in the first place. If they never saw the problems or don't understand the issues and risks, how are they to be trusted on their contradicting viewpoints. I spent one night and went back through the archives and read as much as I could from Mr. P and Succo. That is all the confirmation I need, he clearly understands the risks and the likely path we are on.
2008-09-26 10:30:29
This is why we come here!
This is great thinking. There are several things that could change or mitigate the landscape. A real productivity gain, one of major consequence, could dramatically change all standard of living at the same time. For example, if technology was created to vastly lower the cost of energy so that oil dropped to $5 that would lower the cost structure of all developed economies. If you lower the cost structure you raise income. More income to support the vast debt would create the liquidity necessary, liquidity from economic production.
2008-09-26 10:47:53
"The way to eventually heal the system is to let bad banks fail and just protect the savings at those banks."
So if this is true, the best way to move forward would be for the government to 'take over' the FDIC and instead of guaranteeing only $100k, greatly raise the limit, maybe even guarantee everything and not have a limit for now? This would turn CD's and savings accounts into a form of Treasuries but would be paid back by banks as they come through this mess.
So if this is true, the best way to move forward would be for the government to 'take over' the FDIC and instead of guaranteeing only $100k, greatly raise the limit, maybe even guarantee everything and not have a limit for now? This would turn CD's and savings accounts into a form of Treasuries but would be paid back by banks as they come through this mess.
2008-09-26 11:06:34
Mr. Practical
The man of wisdom, as always!
Who is that masked man?? Cookie - a clue???
Which part of Japan is he ensconced in? I prefer Kyushu... warm with southern hospitality.
Who is that masked man?? Cookie - a clue???
Which part of Japan is he ensconced in? I prefer Kyushu... warm with southern hospitality.
2008-09-26 11:25:53
Mr. Practical to the Rescue!!!
Mr. Practical, thank you so much for returning to talk sense to the Minyans. Your protege Toddo lost his mind this week and actually supported this blackmail bailout. I think you may have finally made him realize this is THE turning point.
"What is paramount now is that sensible people running the government do not abuse their power and do what is best for taxpayers"---Mr. Practical
Congratulations Mr. Practical, you have secured the freedom of one of our hostages. We are releasing poor wounded Boo, so that he may run wild as this blackmail bailout bill is killed. What we are finally witnessing is Minyanville's long predicted "shunning of debt of any kind" and the US Taxpayer is demanding that we not raise the debt ceiling another trillion dollars!
Pity poor Hoofy. He will be tortured mercilessly until Toddo says sell sell sell! We aren't experienced enough out here to play this stupid game of "the reaction to the news is more important".
Discipline Toddo, discipline. Go long the taxpayer and short corruption, greed, moral hazard and incompetence. It is the only trade that matters!
"What is paramount now is that sensible people running the government do not abuse their power and do what is best for taxpayers"---Mr. Practical
Congratulations Mr. Practical, you have secured the freedom of one of our hostages. We are releasing poor wounded Boo, so that he may run wild as this blackmail bailout bill is killed. What we are finally witnessing is Minyanville's long predicted "shunning of debt of any kind" and the US Taxpayer is demanding that we not raise the debt ceiling another trillion dollars!
Pity poor Hoofy. He will be tortured mercilessly until Toddo says sell sell sell! We aren't experienced enough out here to play this stupid game of "the reaction to the news is more important".
Discipline Toddo, discipline. Go long the taxpayer and short corruption, greed, moral hazard and incompetence. It is the only trade that matters!
2008-09-26 11:35:37
Sure would be nice...
Sure would be nice if more of the media would assume there are plenty of intelligent people out there who don't need to be told what to think... (like Minyanville).
I cannot adequately express my rage at hearing NPR commentary this morning telling me that there are "portfolio people and paycheck people" and the "vernacular" has the "paycheck people" confused on this issue (and that, they claim is why 90%+ oppose it).
Translation, we are too stupid to think for ourselves. Anyone who opposes the plan the Dems approved of is a "paycheck" person and needs to be made a ward of the state...
I am not sold on any of the 3 plans at this point, but what I am most certain of is that this is being rushed and however bad government decision making might normally be, its decision making in a crisis is even worse... These are the same bozos who supposedly bailout out housing almost a year ago! Anyone remember that? How well is that working?
They keep saying that this is too complex to work out the individual companies, derivatives and cascade of debt/default, but somehow Paulson thinks he already knows its less than $700B?
As painful as it is, we NEED to work it all out down to the round $million at least. The Bankruptcy Courts and FDIC might need a little help doing that, but a little, not "defender of Rome and President for life, call me Chavez" sort of emergency powers...
Just some temporary cash for weekend FDIC shenanigans (not $700B) and in the case of the Courts, a little more power to bust contracts/trades as needed regardless of depth.
It is all about perception - unfortunately the air of panic in DC isn't helping matters at all...
I cannot adequately express my rage at hearing NPR commentary this morning telling me that there are "portfolio people and paycheck people" and the "vernacular" has the "paycheck people" confused on this issue (and that, they claim is why 90%+ oppose it).
Translation, we are too stupid to think for ourselves. Anyone who opposes the plan the Dems approved of is a "paycheck" person and needs to be made a ward of the state...
I am not sold on any of the 3 plans at this point, but what I am most certain of is that this is being rushed and however bad government decision making might normally be, its decision making in a crisis is even worse... These are the same bozos who supposedly bailout out housing almost a year ago! Anyone remember that? How well is that working?
They keep saying that this is too complex to work out the individual companies, derivatives and cascade of debt/default, but somehow Paulson thinks he already knows its less than $700B?
As painful as it is, we NEED to work it all out down to the round $million at least. The Bankruptcy Courts and FDIC might need a little help doing that, but a little, not "defender of Rome and President for life, call me Chavez" sort of emergency powers...
Just some temporary cash for weekend FDIC shenanigans (not $700B) and in the case of the Courts, a little more power to bust contracts/trades as needed regardless of depth.
It is all about perception - unfortunately the air of panic in DC isn't helping matters at all...
2008-09-26 11:44:49
Please offer Mr. P my gratitude
This article is excellent. I hope you continue your conversations with Mr Practical.
Since he probably has plenty of money, I wish to offer him my gratitude for being willing to discuss the state of affairs with clarity, honest, and forthrightness! Something much lacking in our "T.V. is reality world".
Since he probably has plenty of money, I wish to offer him my gratitude for being willing to discuss the state of affairs with clarity, honest, and forthrightness! Something much lacking in our "T.V. is reality world".
2008-09-26 11:59:33
Yes. Much less printing of money by not bailing out equity. An equity is an option on profits...no profits and the equity should be worth zero. This is a hallmark of capitalism structure and must be maintained so as not to slip into socialism. Protects the part of the "system" that needs to be protected to not collapse. Equity is not part of that.
2008-09-26 12:07:05
Maybe someone should send this articles to the "Berries"?
Another thought. This article is so good, maybe someone should email it to some of the politicians.
If it is sent to enough of them, maybe someone will have some sense?
Bernanke, McCain, Obama, Paulson, etc., ....
(not on any of my contact lists, but maybe someone has connections?)
I don't like "Berries" either, but this is real money at stake. Everyones.
If it is sent to enough of them, maybe someone will have some sense?
Bernanke, McCain, Obama, Paulson, etc., ....
(not on any of my contact lists, but maybe someone has connections?)
I don't like "Berries" either, but this is real money at stake. Everyones.
2008-09-26 12:47:42
Spread the word!
I agree with Mr. Bacan. This article needs to be distributed beyond Minyanville.
2008-09-26 13:01:52
China banks halt lending to US banks...
I thought this was an interesting article in light of the article above.
http://www.reuters.com/article/newsOne/idUSPEK16693720080925
Comments, anyone?
http://www.reuters.com/article/newsOne/idUSPEK16693720080925
Comments, anyone?
2008-09-26 13:55:20
This is why we come here!
The only technology I can think of with that kind of potential is fusion power. They've been researching it, tepidly, for decades. Get fusion plants working and we've got cheap electricity.
2008-09-26 14:51:12
China banks halt lending to US banks...
Hi Jon
That was essentially retracted the next day by a number of news organizations.
http://search.us.reuters.com/query/?q=%63%68%69%6e%65%73%65%20%62%61%6e%6b%73%20%77%6f%6e%27%74%20%6c%65%6e%64%20%74%6f%20%55%53&s=USWEB
That was essentially retracted the next day by a number of news organizations.
http://search.us.reuters.com/query/?q=%63%68%69%6e%65%73%65%20%62%61%6e%6b%73%20%77%6f%6e%27%74%20%6c%65%6e%64%20%74%6f%20%55%53&s=USWEB
2008-09-26 15:08:22
Mr. Practical to the Rescue!!!
I wouldn't go so far as to say I lost my mind and supported 'that' plan, I offered that 'a' plan was better than the entire capital construct be sucked into the abyss.
I've made my feelings well known about the free market system. It was profoundly sad but alas, there's no time for tears.
Read "Martial Law for the Markets" (was that really just a week ago?), "Back in the USSA" and "Shock & Awe." It walks through my thought process as it occured in real-time.
We talked about this before it was a problem ("Is the Big One Coming?" "Pirate's Booty" "The Upside of Anger."). I'm not looking back and saying 'SEE!," I'm looking forward as our community searches for the best possible path ahead.
So it's said, I had a moment of clarity that included the bailout package passing and the market failing. NOBODY is talking about that. From 'there' (VXO 70?), I think the hyper-inflation efforts begin. Just my two cents and again, figuring it out as we go along.
Thanks all for being part of the Minyan community. Rock N' Roll.
I've made my feelings well known about the free market system. It was profoundly sad but alas, there's no time for tears.
Read "Martial Law for the Markets" (was that really just a week ago?), "Back in the USSA" and "Shock & Awe." It walks through my thought process as it occured in real-time.
We talked about this before it was a problem ("Is the Big One Coming?" "Pirate's Booty" "The Upside of Anger."). I'm not looking back and saying 'SEE!," I'm looking forward as our community searches for the best possible path ahead.
So it's said, I had a moment of clarity that included the bailout package passing and the market failing. NOBODY is talking about that. From 'there' (VXO 70?), I think the hyper-inflation efforts begin. Just my two cents and again, figuring it out as we go along.
Thanks all for being part of the Minyan community. Rock N' Roll.
2008-09-26 15:22:49
This is why we come here!
That is exactly a key point. The "berries" (your term) of recent years have been hollowing out the manufacturing and technological base of this country, and destroying the financial system. I still believe their world view is of a two class country where you have the ultra-rich, and the poor (everyone else).
Of course those who are "just" rich are also see their standard of living decrease (just look at all those lower ranks in the financial sector out of work). Even they were taken along for the ride, as only the top dogs parachuted to safety. The rest are left to eat kibble.
So, please go out and vote! This country needs all classes.
Of course those who are "just" rich are also see their standard of living decrease (just look at all those lower ranks in the financial sector out of work). Even they were taken along for the ride, as only the top dogs parachuted to safety. The rest are left to eat kibble.
So, please go out and vote! This country needs all classes.
2008-09-26 15:22:58
Gunslingers...
The entire mess we are in right now is akin to the gunfight at the OK Corral.
There have been many numbers bandied about but the one number that seems to be consistent is that there are some $62T worth of derivatives out there.
The holders of this paper have met now on the sandy set, replete with tumbleweeds. No one wants to draw first for they all know that when the shooting starts, it is going to get real bloody real quick.
For the life of me, I cannot fathom why it is in the best interest of the little guy (or gal...) for us to stop the melee by throwing tons of money into the stables. I cannot think of why that would stop the shooting in the first place and, secondly, the holders of this debt should mean little to us anyway.
It seems that the entire scene would be reminiscent of a massive pile-up on the M1, with all the oncoming traffic getting a brief look at what carnage looks like.
We are all like rubberneckers.
So, I scratch my head wondering what the real reason is behind this, "just sign it and shut up" attitude displayed by the Treasury Secretary and Chairman of the FOMC. Do they just not want us to see their friends laid out along the highway- or is there something far more sinister in their plans?
Mr. P must be correct in that it has something to do with the Chinese who no longer want to carry our debt.
There is something afoot at the Circle K.
There have been many numbers bandied about but the one number that seems to be consistent is that there are some $62T worth of derivatives out there.
The holders of this paper have met now on the sandy set, replete with tumbleweeds. No one wants to draw first for they all know that when the shooting starts, it is going to get real bloody real quick.
For the life of me, I cannot fathom why it is in the best interest of the little guy (or gal...) for us to stop the melee by throwing tons of money into the stables. I cannot think of why that would stop the shooting in the first place and, secondly, the holders of this debt should mean little to us anyway.
It seems that the entire scene would be reminiscent of a massive pile-up on the M1, with all the oncoming traffic getting a brief look at what carnage looks like.
We are all like rubberneckers.
So, I scratch my head wondering what the real reason is behind this, "just sign it and shut up" attitude displayed by the Treasury Secretary and Chairman of the FOMC. Do they just not want us to see their friends laid out along the highway- or is there something far more sinister in their plans?
Mr. P must be correct in that it has something to do with the Chinese who no longer want to carry our debt.
There is something afoot at the Circle K.
2008-09-26 15:38:00
One irony of all of this....
Love Mr. P. and thanks to him for his sanity in this insane time.
One irony I have found is as follows: In the 30's most banks went bankrupt from withdrawals, so the government created the FDIC to create confidence in the system.
Now, you are getting runs on the shadow banking system. Money market funds in particular are the big danger. But where are those dollars going? A good chunk is going into the same type local banks that failed in the 30's but now have the advantage of insurance!
So perversely, this may help the small and regional institutions increase their deposit bases....which is great low cost funding for them. If they haven't screwed up massively in their loan underwriting the past 3 years, they may come out the other side in better shape.
Of course, nothing is certain for sure these days---I too am wondering when to convert dollars to gold or something else.
What is the best way for a US individual to buy foreign sovereign debt? Is there a mutual fund or ETF that fits the bill?
regards to all
One irony I have found is as follows: In the 30's most banks went bankrupt from withdrawals, so the government created the FDIC to create confidence in the system.
Now, you are getting runs on the shadow banking system. Money market funds in particular are the big danger. But where are those dollars going? A good chunk is going into the same type local banks that failed in the 30's but now have the advantage of insurance!
So perversely, this may help the small and regional institutions increase their deposit bases....which is great low cost funding for them. If they haven't screwed up massively in their loan underwriting the past 3 years, they may come out the other side in better shape.
Of course, nothing is certain for sure these days---I too am wondering when to convert dollars to gold or something else.
What is the best way for a US individual to buy foreign sovereign debt? Is there a mutual fund or ETF that fits the bill?
regards to all
2008-09-26 16:01:38
abstract thought!
The housing market is our focus with its 12 trillion in loans of which some are defaulting which leads us to the bailout of the banks. But what about the farm loans, industrial loans, timber land loans, corporate loans and such that the bank has made. No word that these are defaulting so lets have some collateral from these loans for the 700 billion dollar bail out plan along with time restraints and compensation restraints. Not just the Exec compensation restraints but also on employee bonus and pay restriction from those whom we are bailing out.
How about Government working on its own in house cost cutting plan including pay packages and benefits and vesting rights to retirement plans. The inequities comparisons of government to private pay are way out of whack. The same for the Government benefits of which tax payers have to support. Put us on equal footing and maybe the government and politicians will better understand what Johnny lunch box in the private sector is faced with. I would love to have weeks on end of vacation and all those holidays along with sich pay and the job security of knowing its impossable to fire you once you pass the 30 day mark.
Stop the pork. Stop the waste. Stop the farm aid bill and corporate welfare and entitlements and off shore tax privileges afforded to corporations which have moved their head quarters offshore to avoid taxes. Stop the spread of your fat arse's from sitting on it and doing nothing. Work for us. After all we are your bread and butter.
JPM
How about Government working on its own in house cost cutting plan including pay packages and benefits and vesting rights to retirement plans. The inequities comparisons of government to private pay are way out of whack. The same for the Government benefits of which tax payers have to support. Put us on equal footing and maybe the government and politicians will better understand what Johnny lunch box in the private sector is faced with. I would love to have weeks on end of vacation and all those holidays along with sich pay and the job security of knowing its impossable to fire you once you pass the 30 day mark.
Stop the pork. Stop the waste. Stop the farm aid bill and corporate welfare and entitlements and off shore tax privileges afforded to corporations which have moved their head quarters offshore to avoid taxes. Stop the spread of your fat arse's from sitting on it and doing nothing. Work for us. After all we are your bread and butter.
JPM
2008-09-26 16:48:32
I am new here is Mr. Practical a sock puppet Todd puts on his left hand and then has a conversation with?
Don't get me wrong I think Mr. Practical is right on I have completely flipped my position on the bailout in the last day. I am completely on board with his theory to let this thing go! Of course it will be very hard on people like me who are carrying multiple mortgages and living in a rental on top of that. But hey what fun would life be if it was easy!!!
By the way as a devoted republican I would like to point out how the MCCain campaign has just tricked the democrats into coming out and yelling at the top of their lungs how it is all his fault that the most unpopular plan in congressional history is being stopped by him.
McCain may be smarter than I thought but in the end a new plan will emerge and MCCain will not only be able to declare victory he will be able to talk about how he barely stopped congress from passing a 700 billion boondoggle!
In the Mean time Obama has yet to take a position on the Bail out. Anyone else notice he hasn't endorsed it nor stood against it he has only said he will step back and let the adults handle the negotiations. His lack of courage will eventually come through to the public.
Don't get me wrong I think Mr. Practical is right on I have completely flipped my position on the bailout in the last day. I am completely on board with his theory to let this thing go! Of course it will be very hard on people like me who are carrying multiple mortgages and living in a rental on top of that. But hey what fun would life be if it was easy!!!
By the way as a devoted republican I would like to point out how the MCCain campaign has just tricked the democrats into coming out and yelling at the top of their lungs how it is all his fault that the most unpopular plan in congressional history is being stopped by him.
McCain may be smarter than I thought but in the end a new plan will emerge and MCCain will not only be able to declare victory he will be able to talk about how he barely stopped congress from passing a 700 billion boondoggle!
In the Mean time Obama has yet to take a position on the Bail out. Anyone else notice he hasn't endorsed it nor stood against it he has only said he will step back and let the adults handle the negotiations. His lack of courage will eventually come through to the public.
2008-09-26 17:17:08
Hi. I'm Tom.
Thank you Mr. Practical. Please keep writing (talking?) whenever you feel like it.
I'm a recent addition to Minyanville citizenry, a guy who really didn't want to move here, just wanted to live out in suburbia and sock it away in my 401K. The numbers and percentages I wanted to focus on were for leisure pursuits like Fantasy baseball and football. Managing my money was far too much like real work. I've never enjoyed it.
But in the past couple years I became increasingly concerned about what was going on in the market, not because I really understood it or anything, but because it just seemed crazy to me. How could the price of housing be escalating so rapidly? How could a guy who was making so much less than me get a house so much nicer than mine? Or buy a second house? Everything seemed out of whack. I started reading financial information on sites that suited my political sensibilities, like Daily Kos, and started a new job where my boss -- knowing my background in journalism -- insisted I read the Financial Times every day, because he thought it the world's greatest newspaper.
The more I read, I slowly began to realize: This is a scam. They're pushing the liimits on everything to keep the economy churning, moving from bubble to bubble, but someday the bubbles are going to run out. As I kept reading, it dawned on me that there was a pretty good chance the last bubble was the housing market.
So I sold my house and all my stock last fall. It did not go over well with my parents, and people in my neighborhood -- there are a lot of Wall Street guys -- made fun of me. I was repeatedly told that I "didn't understand the new economy" and stuff like that. At parties, while we were trying to sell our house, people would talk to me in a gently condescending fashion. At one party, after a couple beers, I finally said "Let's remember this conversation when I come back in five years and buy your house for half what I sold mine for." That didn't go over too well.
My house was in a lake neighborhood suburb of NYC, where there are just under 600 homes. When I was selling my house last fall, about 50 of them were for sale. As of 4th of July weekend, 178 of them were for sale. It might be more now.
I got out and it's satisfying. BUT....NOW WHAT???
This introduction to the Minyanville community is a long and roundabout way of saying, uh, HELP. I'm sitting on all this cash now in a money market (and really, it's not all that much cash) and I don't know what to do next. I know what I WANT to do, but I don't know HOW to do it. I've never had to deal with anything like this -- didn't want to, didn't have to. But, as our wise mentors who run this site continually remind us, everything has changed.
Even with my rudimentary understanding of the markets, I've felt that the dollar is not the place to be, but I sure don't want stocks. I'd freeze my 401K if my company wasn't matching up to 6%. I agree that the dollar could go either way, devaluation or hyperinflation, and I'm leaning towards the former, but realize that's what I PREFER and it's probably influencing my thinking.
What I don't know is how to invest this money I've got where I want -- who do I trust to buy international securities for me? Can I do that myself? Where? How? The same for gold. I honestly think, from all the reading I've done, at some point gold is just going to skyrocket.
Do I take a class to learn all this stuff? From who? Where? Is there an online course? A constantly updated book? Where do I go to learn the things I'm going to need to know to survive and (hopefully) prosper a little bit?
I never really felt the need to be rich. I just wanted a nice comfortable, pleasant life, and I've had that so far. But now I think my ignorance of how this all works is a serious detriment in a world where people would gladly outsmart me and take my money. Any suggestions of what I do for a rapid rise on the learning curve is greatly appreciated.
tws
I'm a recent addition to Minyanville citizenry, a guy who really didn't want to move here, just wanted to live out in suburbia and sock it away in my 401K. The numbers and percentages I wanted to focus on were for leisure pursuits like Fantasy baseball and football. Managing my money was far too much like real work. I've never enjoyed it.
But in the past couple years I became increasingly concerned about what was going on in the market, not because I really understood it or anything, but because it just seemed crazy to me. How could the price of housing be escalating so rapidly? How could a guy who was making so much less than me get a house so much nicer than mine? Or buy a second house? Everything seemed out of whack. I started reading financial information on sites that suited my political sensibilities, like Daily Kos, and started a new job where my boss -- knowing my background in journalism -- insisted I read the Financial Times every day, because he thought it the world's greatest newspaper.
The more I read, I slowly began to realize: This is a scam. They're pushing the liimits on everything to keep the economy churning, moving from bubble to bubble, but someday the bubbles are going to run out. As I kept reading, it dawned on me that there was a pretty good chance the last bubble was the housing market.
So I sold my house and all my stock last fall. It did not go over well with my parents, and people in my neighborhood -- there are a lot of Wall Street guys -- made fun of me. I was repeatedly told that I "didn't understand the new economy" and stuff like that. At parties, while we were trying to sell our house, people would talk to me in a gently condescending fashion. At one party, after a couple beers, I finally said "Let's remember this conversation when I come back in five years and buy your house for half what I sold mine for." That didn't go over too well.
My house was in a lake neighborhood suburb of NYC, where there are just under 600 homes. When I was selling my house last fall, about 50 of them were for sale. As of 4th of July weekend, 178 of them were for sale. It might be more now.
I got out and it's satisfying. BUT....NOW WHAT???
This introduction to the Minyanville community is a long and roundabout way of saying, uh, HELP. I'm sitting on all this cash now in a money market (and really, it's not all that much cash) and I don't know what to do next. I know what I WANT to do, but I don't know HOW to do it. I've never had to deal with anything like this -- didn't want to, didn't have to. But, as our wise mentors who run this site continually remind us, everything has changed.
Even with my rudimentary understanding of the markets, I've felt that the dollar is not the place to be, but I sure don't want stocks. I'd freeze my 401K if my company wasn't matching up to 6%. I agree that the dollar could go either way, devaluation or hyperinflation, and I'm leaning towards the former, but realize that's what I PREFER and it's probably influencing my thinking.
What I don't know is how to invest this money I've got where I want -- who do I trust to buy international securities for me? Can I do that myself? Where? How? The same for gold. I honestly think, from all the reading I've done, at some point gold is just going to skyrocket.
Do I take a class to learn all this stuff? From who? Where? Is there an online course? A constantly updated book? Where do I go to learn the things I'm going to need to know to survive and (hopefully) prosper a little bit?
I never really felt the need to be rich. I just wanted a nice comfortable, pleasant life, and I've had that so far. But now I think my ignorance of how this all works is a serious detriment in a world where people would gladly outsmart me and take my money. Any suggestions of what I do for a rapid rise on the learning curve is greatly appreciated.
tws
2008-09-26 17:18:59
One irony of all of this....
Talk to your local bankers. Seriously - at least in my neck of the woods, there's no panic. I had a conversation with a local banker yesterday and the scenario was exactly as you describe: conservative lending practices (they didn't try to keep up with the big boys) and deposits are now up, thanks to the money market panic. Solid at the moment with no hint of worry.
This very well may shore up the small banking system.
This very well may shore up the small banking system.
2008-09-26 17:28:18
Mr. Practical to the Rescue!!!
"So it's said, I had a moment of clarity that included the bailout package passing and the market failing. NOBODY is talking about that. "
Exactly. We might be into a world of plain old "too little, too late". In that case *any* "throw money at it" bailout plan will simply sap our reserves.
Again, thanks for the article: I'm serious that it restored my faith in that there are people out there who know how to handle money and have a head on their shoulders *and* a heart. Not that anyone does things perfectly (rumors have it that I'm not either - pretty vicious if you ask me *grin* ) or can agree on everything but last night gave me real pause.
Exactly. We might be into a world of plain old "too little, too late". In that case *any* "throw money at it" bailout plan will simply sap our reserves.
Again, thanks for the article: I'm serious that it restored my faith in that there are people out there who know how to handle money and have a head on their shoulders *and* a heart. Not that anyone does things perfectly (rumors have it that I'm not either - pretty vicious if you ask me *grin* ) or can agree on everything but last night gave me real pause.
2008-09-26 17:50:48
A succinct summation
A nice, calm non-acromonius dissection of the deception. I would only quibble with terming the Bungalow/Bailout Bill "Socialism"- It is Fascism-
The intertwining of the interests of Govt., Big Business, and the Military. Socialism would be helping the downtrodden, not the trodders.
The intertwining of the interests of Govt., Big Business, and the Military. Socialism would be helping the downtrodden, not the trodders.
2008-09-26 18:37:24
USA bankrupt
For all intents and purposes, with a two front war with no end in sight, and now a $1.5T+ financial fiasco, the USA is bankrupt. The last 8 years have been the most egregious failure of government in US history. Democracy stands before the world a failure. George Bush should spend the rest of his life in prison.
At some point other countries are going to stop taking our vapor currency as anything of value. But no one has ever really explored the full implications of that. Ideally the dollar will simply deflate to Philippine peso grade currency smoothly over time, but markets don't work like that. This could be sudden and very very ugly. Countries sitting on huge dollar reserves or holding debt denominated in dollars are totally screwed.
This is more than a train wreck. The trestle over the gorge has collapsed with us on it.
At some point other countries are going to stop taking our vapor currency as anything of value. But no one has ever really explored the full implications of that. Ideally the dollar will simply deflate to Philippine peso grade currency smoothly over time, but markets don't work like that. This could be sudden and very very ugly. Countries sitting on huge dollar reserves or holding debt denominated in dollars are totally screwed.
This is more than a train wreck. The trestle over the gorge has collapsed with us on it.
2008-09-26 19:59:16
Hi. I'm Tom.
Don't freeze the 401, keep contruibuting into equties. I moved the balance from the equity account to the fixed account last fall, but my regular contributions continue to go into the market. As for the $, patience is key. Why not diversify into several foreign currencies....fxy as a hedge against a market selloff, fxf for securitu, fxa for yield, and if you have nerve, fxb (I don't). mix in a little merkx (I bought too high but I'm patient). nibble into a little preferred debt if you like, I tried pff in a very small position.
Every persons risk tolerance and time horizon is different. Do your dd. Read. I jumped in just before the subprime slime and lost $ unnecessarily. I'm preserving capital. Remember, Minyanville talkes in themes, you need to find how to apply that theme to investing. We are still in the deflationary stages, but the inflationary stages will follow.
Every persons risk tolerance and time horizon is different. Do your dd. Read. I jumped in just before the subprime slime and lost $ unnecessarily. I'm preserving capital. Remember, Minyanville talkes in themes, you need to find how to apply that theme to investing. We are still in the deflationary stages, but the inflationary stages will follow.
2008-09-26 20:25:25
Why Stay Out of Debt?
I'm missing something here. If the dollar is going to drop in value, shouldn't I be picking up as much reall assets (land, gold...) with debt as I can? Then I get to pay for them with inflated dollards at much lower cost.
The last think I would want to hold is dollars, but long term dollar debt seems like a natural!
The last think I would want to hold is dollars, but long term dollar debt seems like a natural!
2008-09-26 20:50:08
Mr. Practical to the Rescue!!!
Dear Mr. Harrison:
I sincerely appreciate every effort you have made with Minyanville and rest assured, you should be very proud of the sound advice you have offered everyone for the wonderful price of FREE. You ARE giving back unlike the rest of Wall Street and I shouldn't lump you in there with those who are behind the evil traitorous Paulson "plan".
I apologize if I misrepresented any of your positions on the blackmail bailout Paulson "plan". I also apologize for raising my voice in anger at you and I apologize for some of the things I called you this week.
You have proven that you are a true American patriot by defending our Constitution. Despite the insults hurled at you, you have remained calm and have graciously allowed us all to vent our very bitter feelings at the criminals who have sabotaged our government and led our nation into a deadly, senseless war, and now a theft of taxpayer money in broad daylight using scare tactics and threatening something "very bad" but never defining the danger!!!
I realized this morning that this is not Main Street vs. Wall Street. No, this is Main Street versus Capitol Hill (who is owned by JPMorgan Chase). Only Senator Shelby, Ron Paul, and a few others have had the courage to do what is right and demand that the debt ceiling not be raised. They will be our future leaders as we wind through the difficult times ahead.
Demanding that the debt ceiling remain untouched is the crux of this entire battle. (I am reminded of your Braveheart column here).
Keeping the debt ceiling intact will finally force the cannabalistic PIGS OF CAPITOL HILL to stop loading every fugging bill they see with PORK. WE WANT OUR PORK BACK. WE ARE TAKING OUR COUNTRY AND OUR PORK BACK AND WE WILL FORCE CAPITOL HILL TO STOP WASTING OUR TAXES AND STOP REWARDING CRIMINALS AND INSTEAD PUT THEM IN JAIL WHERE THEY BELONG.
WHERE IN THE FLYING FUGG IS THE F.B.I. ???
WHERE IS THE STUPID F.B.I ???? HOW STUPID IS THE F.B.I. ??? THEY SHOULD BE IN LEHMAN BROTHERS OFFICE WITH GUNS!!!
LEHMAN BROTHERS REPORTED A PROFIT OF 489,000,000.00 FOR THE THREE MONTHS ENDED FEBRUARY 29, 2008!!! THEY RAISED AT LEAST 4 BILLION DOLLARS SELLING "STOCK" IN APRIL AND IT IS ALL GONE!!!!
THIS IS FRAUD!!!! D1CK FULD MUST BE ARRESTED BUT THE F.B.I. ARE TOO STUPID TO KNOW A CRIME WHEN IT IS RIGHT BEFORE OUR EYES!!!!
DO YOU HEAR ME? YOU REPORT A PROFIT OF 489 MILLION AND THEN 6 MONTHS LATER YOU ARE BANKRUPT???
AND NOW YOU WANT TO GIVE A TRILLION DOLLARS TO THE REST OF THESE FRAUDULENT CROOKS BEFORE THE STUPID F.B.I. FINISHES THEIR INVESTIGATION???
MR. HARRISON, FEEL THE ACRIMONY. YOU ARE ALMOST AT THE END OF THE DENIAL PHASE OF THE DENIAL-MIGRATION-PANIC MECHANISM YOU SPEAK OF. YOU ARE FINALLY NO LONGER IN DENIAL ABOUT THE STUPIDITY OF THE PAULSON "plan" AND I BELIEVE MR. PRACTICAL HAS MADE YOU REALIZE THAT THIS IS THE TURNING POINT IN THE CYCLE YOU HAVE BEEN PREDICTING AND WAITING FOR SINCE OJAI.
THESE ARE THE DAYS WHEN AMERICA SAYS "NO MORE DEBT" AND WE START DOING OUR BUSINESS IN CASH. THAT'S WHY WE ARE WITHDRAWING CASH. CASH IS THE KING NOW TODDO, WE HAVE SWITCHED TO DEFLATION AND YOU CAN NO LONGER HAVE ANY DOUBT. NO MORE TEETER TOTTERING IN YOUR WISHBONE WORLD!!!
THANK YOU FOR WARNING ME THIS DAY WOULD COME MINYANVILLE!!! AND NOW THE MINYANS ARE READY FOR BATTLE. NO MORE KING GEORGE !!! NO MORE KING HENRY !!! DEATH TO THE FEDERAL RESERVE AND FRACTIONAL LENDING!!! NO MORE TAXATION WITHOUT REPRESENTATION !!! WE WILL BE MARCHING ON CAPITOL HILL AND YOU NEED TO TELL US WHEN TO MEET YOU THERE TODDO!!!
THIS IS YOUR FINEST HOUR MR. HARRISON DO NOT LET YOUR KNEES GET WEAK NOW!!! WE CAN NOT BEGIN THE BETTER LIFE ON THE OTHER SIDE OF THIS HORRIBLE BATTLE AGAINST TYRANNY UNTIL WE FIGHT THE BATTLE AND WIN THIS WAR!!!
MINYAN MICHAEL C. KERNAN
PROUD AMERICAN
PROUD MINYAN
I sincerely appreciate every effort you have made with Minyanville and rest assured, you should be very proud of the sound advice you have offered everyone for the wonderful price of FREE. You ARE giving back unlike the rest of Wall Street and I shouldn't lump you in there with those who are behind the evil traitorous Paulson "plan".
I apologize if I misrepresented any of your positions on the blackmail bailout Paulson "plan". I also apologize for raising my voice in anger at you and I apologize for some of the things I called you this week.
You have proven that you are a true American patriot by defending our Constitution. Despite the insults hurled at you, you have remained calm and have graciously allowed us all to vent our very bitter feelings at the criminals who have sabotaged our government and led our nation into a deadly, senseless war, and now a theft of taxpayer money in broad daylight using scare tactics and threatening something "very bad" but never defining the danger!!!
I realized this morning that this is not Main Street vs. Wall Street. No, this is Main Street versus Capitol Hill (who is owned by JPMorgan Chase). Only Senator Shelby, Ron Paul, and a few others have had the courage to do what is right and demand that the debt ceiling not be raised. They will be our future leaders as we wind through the difficult times ahead.
Demanding that the debt ceiling remain untouched is the crux of this entire battle. (I am reminded of your Braveheart column here).
Keeping the debt ceiling intact will finally force the cannabalistic PIGS OF CAPITOL HILL to stop loading every fugging bill they see with PORK. WE WANT OUR PORK BACK. WE ARE TAKING OUR COUNTRY AND OUR PORK BACK AND WE WILL FORCE CAPITOL HILL TO STOP WASTING OUR TAXES AND STOP REWARDING CRIMINALS AND INSTEAD PUT THEM IN JAIL WHERE THEY BELONG.
WHERE IN THE FLYING FUGG IS THE F.B.I. ???
WHERE IS THE STUPID F.B.I ???? HOW STUPID IS THE F.B.I. ??? THEY SHOULD BE IN LEHMAN BROTHERS OFFICE WITH GUNS!!!
LEHMAN BROTHERS REPORTED A PROFIT OF 489,000,000.00 FOR THE THREE MONTHS ENDED FEBRUARY 29, 2008!!! THEY RAISED AT LEAST 4 BILLION DOLLARS SELLING "STOCK" IN APRIL AND IT IS ALL GONE!!!!
THIS IS FRAUD!!!! D1CK FULD MUST BE ARRESTED BUT THE F.B.I. ARE TOO STUPID TO KNOW A CRIME WHEN IT IS RIGHT BEFORE OUR EYES!!!!
DO YOU HEAR ME? YOU REPORT A PROFIT OF 489 MILLION AND THEN 6 MONTHS LATER YOU ARE BANKRUPT???
AND NOW YOU WANT TO GIVE A TRILLION DOLLARS TO THE REST OF THESE FRAUDULENT CROOKS BEFORE THE STUPID F.B.I. FINISHES THEIR INVESTIGATION???
MR. HARRISON, FEEL THE ACRIMONY. YOU ARE ALMOST AT THE END OF THE DENIAL PHASE OF THE DENIAL-MIGRATION-PANIC MECHANISM YOU SPEAK OF. YOU ARE FINALLY NO LONGER IN DENIAL ABOUT THE STUPIDITY OF THE PAULSON "plan" AND I BELIEVE MR. PRACTICAL HAS MADE YOU REALIZE THAT THIS IS THE TURNING POINT IN THE CYCLE YOU HAVE BEEN PREDICTING AND WAITING FOR SINCE OJAI.
THESE ARE THE DAYS WHEN AMERICA SAYS "NO MORE DEBT" AND WE START DOING OUR BUSINESS IN CASH. THAT'S WHY WE ARE WITHDRAWING CASH. CASH IS THE KING NOW TODDO, WE HAVE SWITCHED TO DEFLATION AND YOU CAN NO LONGER HAVE ANY DOUBT. NO MORE TEETER TOTTERING IN YOUR WISHBONE WORLD!!!
THANK YOU FOR WARNING ME THIS DAY WOULD COME MINYANVILLE!!! AND NOW THE MINYANS ARE READY FOR BATTLE. NO MORE KING GEORGE !!! NO MORE KING HENRY !!! DEATH TO THE FEDERAL RESERVE AND FRACTIONAL LENDING!!! NO MORE TAXATION WITHOUT REPRESENTATION !!! WE WILL BE MARCHING ON CAPITOL HILL AND YOU NEED TO TELL US WHEN TO MEET YOU THERE TODDO!!!
THIS IS YOUR FINEST HOUR MR. HARRISON DO NOT LET YOUR KNEES GET WEAK NOW!!! WE CAN NOT BEGIN THE BETTER LIFE ON THE OTHER SIDE OF THIS HORRIBLE BATTLE AGAINST TYRANNY UNTIL WE FIGHT THE BATTLE AND WIN THIS WAR!!!
MINYAN MICHAEL C. KERNAN
PROUD AMERICAN
PROUD MINYAN
2008-09-27 13:12:40
Mr. Practical to the Rescue!!!
Todd, there are Minyanites who actually DID take notice when you pondered what would happen if there was no rally after a bailout. That's why we come here and read, and subscribe to the products - because our collective conciousness becomes more meaningful. Even diffiering opinions are appreciated (some only to an extent) - when you defended those that lost their jobs with the collapse of Lehman, I didn't particularly share that viewpoint. But I now realize you were not referring to those who sowed this mess, and there are extremely hard-working, dedicated people still working for such firms (i.e. MS, GS). I can only imagine the gut-wrenching feeling they must have had to see the savings that they had put into their companies either wiped out or severely diminished - all while being promised a pot of gold at the end of the rainbow. It is a shame that all of this unfortunately this takes down the good with the bad.
2008-09-27 17:49:04
Yikes! I don't even know what these things are!!!
>>>fxy as a hedge against a market selloff, fxf for securitu, fxa for yield, and if you have nerve, fxb (I don't). mix in a little merkx
It's off to Google for me!
So much to learn.....
tws
It's off to Google for me!
So much to learn.....
tws
2008-09-27 21:40:42
two choices
We have far more debt than can be repaid without massive printing. The Federal government has made massive financial commitments to its citizens that cannot be met without massive printing. This must result eventually in hyperinflation. If we choose to temporarily protect the dollar and let deflation run then there will be a tremendous number of defaults and bankruptcies which will tend to concentrate wealth (especially real estate) in the hands of a few. Later hyperinflation will finish off the middle class as their savings are destroyed and at the same time will end government debt and cancel all government financial commitments (social security, govt pensions, medicare, etc.
If we go ahead with hyperinflation from the beginning as appears likely then the middle class can pay off their mortgages and other debt and small businesses can pay off debt with cheap (Monopoly) money and keep most of their assets. If they have some gold and silver (purchased while they still can buy it cheaply instead of waiting for a "signal" when it will be unavailable) then they will have some operating capital. A little canned food put away for a rainy day is also not a bad idea.
If we go ahead with hyperinflation from the beginning as appears likely then the middle class can pay off their mortgages and other debt and small businesses can pay off debt with cheap (Monopoly) money and keep most of their assets. If they have some gold and silver (purchased while they still can buy it cheaply instead of waiting for a "signal" when it will be unavailable) then they will have some operating capital. A little canned food put away for a rainy day is also not a bad idea.
2008-09-27 21:47:11
Hi. I'm Tom.
gold and especially silver are really cheap. don't trust paper.
2008-09-28 14:36:02
Dear U.S. Government
Dear U.S. Government,
As a result of your wanton lust to tax me into indentured servitude to reward the greed and indolence of the irresponsible I plan on doing the following:
1. Taking all cash out of any bank and dealing on a cash only basis as much as humanly possible.
2. Liquidating any investments, i.e. - taking my money out of the Wall Street Casino. This includes IRA's and 401k's (yes, you heard me). Cash now is what I want since I have lost trust in all institutions.
3. Cutting any type discretionary spending I possibly can besides food, heat, light.
4. Delaying payments on mortgage, medical bills, and any others as long as possible.
Ironic that you thought you could restore trust by robbing the responsible. The logical course for the responsible will be to GET THEIR MONEY OUT.
You fools...
As a result of your wanton lust to tax me into indentured servitude to reward the greed and indolence of the irresponsible I plan on doing the following:
1. Taking all cash out of any bank and dealing on a cash only basis as much as humanly possible.
2. Liquidating any investments, i.e. - taking my money out of the Wall Street Casino. This includes IRA's and 401k's (yes, you heard me). Cash now is what I want since I have lost trust in all institutions.
3. Cutting any type discretionary spending I possibly can besides food, heat, light.
4. Delaying payments on mortgage, medical bills, and any others as long as possible.
Ironic that you thought you could restore trust by robbing the responsible. The logical course for the responsible will be to GET THEIR MONEY OUT.
You fools...
2008-09-28 20:59:20
Investing in sovereign securities
Is anybody aware of some easy way to buy a foreign equivalent of our Treasury bills (e.g. maybe an ETF of Swiss gov debt)?
thanks
thanks
2008-09-29 16:13:10
Investing in sovereign securities
check out everbank..they have some foreign denominated CDs.
2009-11-25 00:15:38
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