Quote:
Originally Posted by fred cook
What Tabs has his funds invested in is no body's business but his and the IRS! Either he is who/what he says or he's not. If he is, good for him, if not, then that's his problem, not ours. In any event, he does make some good points now and then!
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I shyte my pants in abject fear/pain with Equities twice since 2000. On 911 I called Mother in Tucson who the RNC had asked for advice that week, and is a friend of a former FED Reserve Chairman. She said that, "No matter if you have plastic, bank accounts stocks, bonds or a wheel barrel full of money it doesn't matter you will be in a bread line. (sic you can be wiped out). Do you know how many ways there can be a run on the bank? Banks "make markets" for Equites and if they run out of money buying shares up, equities go into free fall."
Later she said, "That even the President of BA didn't know how fast they could shut the financial system down." Fifteen minutes and the US system was on lock down, Europe was slower so the FED had to loan them 60B to keep them solvent. That is how fast cash was pulled out of the system. If you remember the stock market was shut down for a week as a cooling off period. Later it was US military action in Afghan that restored confidence, the FED lowering interest rates 7 times and GM offering 0% financing..an appeal to greed.
That tells you just how precarious the financial system is in the world...
The second time was when the DOW was down by 1000 pts in free fall, I thought I can be wiped clean out, I saw the abyss opening up. Then I saw a Colt Walker sell for 1M at auction that day and said whew! That whole period was just abject fear time...finally in March of 2009 I came to a point where I was having trouble containing the fear and thought seriously about pulling my money out of Equities..just how much pain can you stand (that was capitulation day for the world)...That day was the absolute bottom of the market and from the next day on it has re-inflated itself.
The whole thing about it is that I never pulled my money out of Equities. Fear is a useful tool that should be paid attention to, it is the body's way of saying PAY ATTENTION..you are in danger Will Robinson. It is then what you do with that fear, and what your actions are that count.
I recognize this stuff for what it is...
Bottom line they gave you TAX REFORM, but they didn't give you the other necessary part of the equation and that is Entitlement Reform. Without Entitlement Reform you are fked. There is the reason why Ryan is going home, he gave up on trying to get Entitlement Reform...
There is no political will on either side , no matter how the Republicans like to talk about it...they ain't fkin goin to do it....that means your nation/society is gona spend itself into oblivion.
Last night I read a little article on the FAUX app that said 40% of American families have trouble making ends meet. In spite of all the good economic news 40% are having trouble paying the utility bills,putting food on the table, and are delaying medical care . In spite of having jobs.. It is a reversion to the mean of human history economically, or as I have so eloquently put it before, a return to the economic demographic of 1910. A small Robber Baron Class of super wealthy, a smallish MC and a large working poor class (where opportunity for social mobility disappears). Well hoo haa that is exactly what that article was saying when 40% of American families are having trouble making ends meet....
You need those 40% of families to feel comfortable and fat so that they can support a burgeoning Global economy by spending. No money means no spending (credit only goes so far) as we found out) and that means a moribund and a deflationary economy. It all spells trouble..