For some reason, I am very tired this morning. Perhaps it is the work I was doing yesterday. On Tuesday, Wednesday and Thursday I wrote what I thought were three very well written posts about the kind of stuff we discuss here on MONEYTHOUGHTS. If I say so myself, I think they are worth reading again. Copy them and send them to your friends. Copy them and send them to your elected representatives. At some point, some one some where will help us spread the word. The TV news will not talk about this stuff, as they would rather talk about affairs. But one man's affair is not going to keep this economy down. We need to direct more people to the bigger issue of the LEVEL PLAYING FIELD for the rest of us. So, today I am going to post a few pictures that I have painted over the years that are still in the news today. The basic issue of fairness as it relates to the treatment of the individual investor has not been dealt with satisfactorily.
Stay tuned.
Posts
3 comments:
moneythoughts,
I just wanted to make a comment concerning leadership, which I believe is part of our problem. Individuals that have attained leadership positions (be it in insurance or securities regulation, business operations, politics, etc)have not lived up to our standards as a nation. Even with advanced degrees and (supposed)knowledge, these individuals have no responsibility. Let me tell the following story which will sum up much of the "lack of leadership".
The Executive Director of our state's Republican Party was clocked with a speed camera, and cited, for traveling over 109 mph on the freeway. He was charged with reckless driving and criminal speeding. His comment to the media was that he wanted to "review the evidence before deciding how to plea".
A Republican State Senator told the press that the Director could have a reasonable excuse for driving so fast, so this citation is probably politically motivated.
Moneythoughts...I can't make this stuff up!!!!! These are prominent leaders. This total lack of common sense and of not accepting responsibility is incomprehensible and premeates our political and business leadership. I saw this play over and over in my business, with leaders making sure they were taken care of....and then walked away when the company faltered.
I don't see these characteristics in Obama, but some of his staff display these characteristics (as did most of the Bush administration). I don't know if Obama can hold it together.
Winslow, you are right. Lack of good leaders is a problem. And your concern about Obama being able to control all those aids, is a really good question. I got to believe that each person in his administration is thinking about the day their book gets published and they convert their opportunity to serve into some big bucks. As the first African-American President, everyone that works near him will have a story to tell. If they do the right thing while they serve the president, and then write their book, I have no problem with that. But, if they you their position to line their own pockets at the expense of the American citizenry, then we have a problem.
I don't trust Geithner or Summers to do the right thing. They are too close to Wall Street and have eaten the forbidden fruit.
I just reread your good post on savings, money, inflation and investment.
To me, one of the biggest elephants in the room is interest rates. For the past decade we've had extremely low interest rates. Of course savings will be low with low interest rates. Little incentive to save.
My savings account at a regular bank pays around .25% interest now. That's one quarter of one percent.
Other investments, like stocks have done better, but they are risky especially taking this past year into account.
Low interest rates have distorted the economy so someone even wrote a book about spending your way to prosperity.
Spending is favored over savings.
Many people try and start businesses with this philosophy. They say, "you've got to spend money to make money."
Low interest rates has also inflated the housing market so that seems to be the way people "save" in this environment. Buying real estate and watching it go up in value seems to be the primary savings vehicle.
Real estate is not a level playing field as low income people can't get onto the first rung of that ladder.
Here is an interesting thing about our low interest rate times.
Inflation normally serves as a check against policies of low interest. In a textbook situation, too much money causes inflation so policy makers (like the Federal Reserve) are motivated to cut back on the money supply.
These days, it seems like no matter how much money goes into circulation, product prices remain low for the most part. If product prices are used as the yardstick to measure inflation, it remains low.
Product prices are low for many reasons including outsourcing, cheap imports and technology.
Energy prices have remain too low for the most part as well leading to a lot of obesities in our economy such as low density sprawl.
We are living in an unusual age when technology creates great abundance out of practically nothing. All the free stuff on the Internet is an example.
When I say "products," I also mean many non material services as well.
There is little incentive from traditional measures of inflation (products and many services) to hike interest rates.
Also low interest rates keep people employed and keep government spending going. Government services seem to always be in high demand; for instance try cutting things like veteran's benefits.
All this extra money sloshing around has to go somewhere.
Due to this sloshing money, certain sectors of our economy have experienced massive inflation over this period while the general inflation rate remains low. Health care expenses is one sector experiencing double digit inflation for the most part. House values (in many regions such as the coasts) is another. Executive salaries for CEOs of major corporations is another.
The little saver has no chance.
Still, life is good for the most part. I try to not base my well being entirely on dollars.
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