sure..it's well known issue and another reason that keeps me away from munis..cause everything is f*d up now..this 'model' ..it's unsustainable..at least from my point of view..it make no sense,when private sector is making less(in some cases twice less) than their 'servants',teaching our kids at schools
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Stocks would be 50% lower without BUBBLE ben bernanke!!
- Thread starter S2007S
- Start date
I find myself largely in agreement with those that believe the entire "fix" will come to a very bad end and that anytime you screw with the natural order of markets to the extent we have it all turns to crap.
That said, is there a route back to sanity or even quasi sanity that has a narrative that American voters will accept in large enough numbers to have a shot at happening? I, for one, do not believe that a populace that has come to accept this nonsense as normalcy will buy into biting the bullet and bearing the pain. I think they do believe in the tooth fairy.
That said, is there a route back to sanity or even quasi sanity that has a narrative that American voters will accept in large enough numbers to have a shot at happening? I, for one, do not believe that a populace that has come to accept this nonsense as normalcy will buy into biting the bullet and bearing the pain. I think they do believe in the tooth fairy.
Quote from denner:
It's absolutely unreasonable, just as the Fed's "dual mandate" is equally preposterous. All of the usual Fed apologists run around screaming "no inflation", constantly citing the most tinkered, hedonically adjusted load of crap to try and "massage" the numbers to fit with some bullshit 2% annual inflationary stat. Of course, using the methodology from 1980 or thereabouts, the numbers suddenly triple or quadruple.
At the very least in 1980, if you had some savings, you could put it in a cd, some t-bills, etc...and probably beat out inflation. Nowadays, forget about it.
The bigger picture is that ZIRP is bankrupting seniors on fixed income, it's creating a bigger hole that pensions will never crawl out from under..those FCM's that seem to be going to hell every few months..yep, lack of interest income.
There is literally a media blackout on the topic of perpetual ZIRP. A few short years ago we heard all of this rhetoric about being "ready to act" within 15 minutes. Six short months later, ZIRP was extended out another 2+ years. So much for the whole notion of "actively monitoring inflationary expectations".
Achilles28 has covered all of this nonsense a million times before me. He is one of the few sensible guys around this place.
Should the mandate of the fed to be to ensure interest rates are high enough to allow seniors to see a return on savings in a checking account?
I always wonder when traders complain about the environment they are in. Aren't they supposed to play with the cards they are dealt?
Quote from Swan Noir:
I find myself largely in agreement with those that believe the entire "fix" will come to a very bad end and that anytime you screw with the natural order of markets to the extent we have it all turns to crap.
That said, is there a route back to sanity or even quasi sanity that has a narrative that American voters will accept in large enough numbers to have a shot at happening? I, for one, do not believe that a populace that has come to accept this nonsense as normalcy will buy into biting the bullet and bearing the pain. I think they do believe in the tooth fairy.
"I think they do believe in the tooth fairy."
then in a way you agree with obama and do not believe in american exceptionalism. you believe voters in america are likely to prove as stupid as voters in argentina who voted for juan peron and for the kirschners. the result was massive inflation and economic collapse.
Quote from newwurldmn:
I always wonder when traders complain about the environment they are in. Aren't they supposed to play with the cards they are dealt?
A good trader should be able to make money in rotten macro scenarios, even end-of-the-world scenarios.
But that doesn't mean he should be complacent about seeing friends, family, and the economy in general getting screwed.
Unless you live on an island, you are a trader and a citizen simultaneously, with a stake in your country's future. Not to mention that extremely bad economic outcomes can lead to far worse political outcomes.
Quote from darkhorse:
A good trader should be able to make money in rotten macro scenarios, even end-of-the-world scenarios.
But that doesn't mean he should be complacent about seeing friends, family, and the economy in general getting screwed.
Unless you live on an island, you are a trader and a citizen simultaneously, with a stake in your country's future. Not to mention that extremely bad economic outcomes can lead to far worse political outcomes.
Thank you...that is largely my point.
Quote from Bob111:
sure..it's well known issue and another reason that keeps me away from munis..cause everything is f*d up now..this 'model' ..it's unsustainable..at least from my point of view..it make no sense,when private sector is making less(in some cases twice less) than their 'servants',teaching our kids at schools
if they were "teaching our kids at school" america might be able to compete internationally. unfortunately american parents complain about schools in general but think their local schools are ok.
of course it could be gigo or the more fundamental issue that america as well as europe is collapsing under a mountain of debt.
Quote from denner:
I guess you weren't around when Volker jacked up rates in the early 80's?
There is a world of difference between "competitive rates" and "going Japanese" and keeping rates pegged at ZERO for 6 f'ing years.
Just because you were born after 1980 is no excuse for being a total ignoramus.
Was born in '62 dipstick! Yes I remember rates went sky high for a few months. Even bought real estate at 13.75% rates.
Obviously The 21% were temporary. Did you manage lock in for 30 years and not tell anyone?
The point is, interest from the bank is for the most part, is behind true inflation and after you get raped with taxes you really fall behind. If you don't understand this then you are the child here.
Quote from Bob111:
hey pal..show me yours, i'll show you mine.. (i just want to be make sure that i'm getting right advise from right person, who did very well in all three)where did i said that i'm into 'creating wealth' mode? i did good in trading..better than most of you here..but what i did stated numerous times here that i'm suck at any investing(doing just fine in day trading(IMO-hardest of all)). i'm suck at any investing cause i'm literally burnt out by my day trading..all i want is fucking PRESERVATION of my capital. that's it. just to have it where it is..it will all go to my kids..im' very simple man..i don't need any fucking boy toys or 10K sqf house..it's looks like a punishment here,when one was asking for me something simple and reasonable....ok then..good luck to all of you,investment geniuses and wealth creating guru's..
Keeping money in the bank is not preservation of capital. It's falling behind true inflation. Always has been and always will be. It is designed that way. You should be petrified to keep money idle in the banks.
Another thing! Inflation has always been here and always will. Many ET posters continuously freak out at inflation like its friggin new. Guess what? Its not! Idle money falls behind real inflation. It's is the deninishing of capital.
Quote from luckyluciano:
Keeping money in the bank is not preservation of capital. It's falling behind true inflation. Always has been and always will be. It is designed that way.
That's a good thing... otherwise things don't work so well if cash now is worth more than investing for cash later.