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I probably shouldn't be posting this because I don't have permission from the person who wrote it, but he has some interesting points. I can't help but think the media has fueled the fire. I know that gas prices have gone up and that has made it difficult for some people. I haven't seen them giving up their SUV's and gas guzzling trucks. Instead I've notice people pulling out their credit cards and charging it. Then Baby1 made a couple of post about people still spending, so I thought I'd share this email my dad sent me from his accountant.
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Subject: Saving the Rich
Did AIG go bankrupt? Except for 12 little banks (assets a paltry $150 million on average), I haven't seen any major financials go under. And no one hopefully put their entire bankroll in these banks. Even Bear Stearns
turned out to be a great business deal for J. Dimond at JPM. Think about it.
How many mortgages will become "bad" if the Govt offers a bail out? Do you think the average joe is going to pay extra when the govt will write the check? Short term, maybe, a bailout is good, but longer term, Congress is getting fleeced by Investment Banks.
Let's face it, I have been telling you that these Investment Banks, (Financials) business model requires them to make more money than "Investments" can cover. The average return on the S&P over 30 years is 8%. So they created very complex securities to sell to the ignorant greedy investor and got burned. Due to the uncertainty of what a bankrupt Merrill Lynch would do to investor confidence, the govt is acting, but how about Delta? How do you think they feel about a bail out? And, by the way, the CEO of "struggling" Bank of America couldn't hide his glee in picking up
Merrill for a song. Not bad for "the sky is falling".
Am I the only one who thinks that with an Election 42 days away that politics might have something to do with this? On National Security, the Bush Doctrine actually wins in the "I haven't been bombed since 9/11" category. Isn't it the Democrats motto, "It's the Economy Stupid"? Should I put it past politicians to create a fiasco to get elected? Do you think we will be hearing about this in the Debates?
Other than looking at your 401k and seeing red, how exactly is your life threatened? Maybe companies were a bit overvalued. Maybe there were over-mortgaging of homes. Maybe oil prices are too high. Maybe the govt
does spend too much. But let's get real. Have you given up your cell phone yet? Missed any UGA games? How about that 2nd car, sold it yet? America is the greatest country, ever. Much of its success has come when the
"world" bet against it.
Unless you fell for something overly greedy, the best strategy now is to "do nothing". Let just one financial go under before you get nervous. But these very smart money fleecers know that folks care more about their money, their financial security than their health. It is true. Example: I have a client with a 401k of $1.5 million. As of August, the account is down$55,000 on paper. Not bad. But since I took them out of equities in July of 2007, how come any loss on fixed income? Well it seems Corporate Bonds are priced to sell. They are paying 6.5% but priced in half. Why? Because due to the "calamity" there are no buyers. So I looked at the income YTD and lo and behold these struggling corporations have paid my client $60,000 in interest and dividends. That is the purpose of fixed income, right? Be sure to look at your portfolio and don't panic if your fixed income is down, you didn't buy it to trade it, but to make a return. Look to see if any of it is in trouble of bankruptcy. But your broker might tell you to sell.
Why, because one they make money churning and two someone picks up a 13% return on your loss. If you do it, you are nuts. Stocks are a different story, but you didn't own those for income, but for growth. In slowing growth, you should expect fluctuations. You don't sell these either. How the money fleecers are getting everyone to churn these accounts due to this world ending event is going to be the story. Basically, you sold for half price, sold low. If you look you will find the buyer was your broker. What a deal, huh?
I surely don't know what is going on, I, like you, just have questions. But I am surely skeptical. If I were on CNBC, never going to happen, I would be asking these questions. Somebody tell me specifically the issue that is truly a material number that is affecting the markets? If I were in charge, I would let the chips fall where they might. Right now, for sure, JP Morgan and Bank of America have to be very happy for this non collapse.
A slowing economy is not something new. How our socialist government deals with it, is very new. I don't like it. Here is another analogy. For years I have heard the poor declare someone throw them a bone. How would a trillion$ help them out? But let poor Wall Street get the hiccups, and its "how can we help you sir". I am a bit right of center, but you have to admit, throwing a trillion at the money people seems a bit skewed, don't you think?
_______________________________________
Subject: Saving the Rich
Did AIG go bankrupt? Except for 12 little banks (assets a paltry $150 million on average), I haven't seen any major financials go under. And no one hopefully put their entire bankroll in these banks. Even Bear Stearns
turned out to be a great business deal for J. Dimond at JPM. Think about it.
How many mortgages will become "bad" if the Govt offers a bail out? Do you think the average joe is going to pay extra when the govt will write the check? Short term, maybe, a bailout is good, but longer term, Congress is getting fleeced by Investment Banks.
Let's face it, I have been telling you that these Investment Banks, (Financials) business model requires them to make more money than "Investments" can cover. The average return on the S&P over 30 years is 8%. So they created very complex securities to sell to the ignorant greedy investor and got burned. Due to the uncertainty of what a bankrupt Merrill Lynch would do to investor confidence, the govt is acting, but how about Delta? How do you think they feel about a bail out? And, by the way, the CEO of "struggling" Bank of America couldn't hide his glee in picking up
Merrill for a song. Not bad for "the sky is falling".
Am I the only one who thinks that with an Election 42 days away that politics might have something to do with this? On National Security, the Bush Doctrine actually wins in the "I haven't been bombed since 9/11" category. Isn't it the Democrats motto, "It's the Economy Stupid"? Should I put it past politicians to create a fiasco to get elected? Do you think we will be hearing about this in the Debates?
Other than looking at your 401k and seeing red, how exactly is your life threatened? Maybe companies were a bit overvalued. Maybe there were over-mortgaging of homes. Maybe oil prices are too high. Maybe the govt
does spend too much. But let's get real. Have you given up your cell phone yet? Missed any UGA games? How about that 2nd car, sold it yet? America is the greatest country, ever. Much of its success has come when the
"world" bet against it.
Unless you fell for something overly greedy, the best strategy now is to "do nothing". Let just one financial go under before you get nervous. But these very smart money fleecers know that folks care more about their money, their financial security than their health. It is true. Example: I have a client with a 401k of $1.5 million. As of August, the account is down$55,000 on paper. Not bad. But since I took them out of equities in July of 2007, how come any loss on fixed income? Well it seems Corporate Bonds are priced to sell. They are paying 6.5% but priced in half. Why? Because due to the "calamity" there are no buyers. So I looked at the income YTD and lo and behold these struggling corporations have paid my client $60,000 in interest and dividends. That is the purpose of fixed income, right? Be sure to look at your portfolio and don't panic if your fixed income is down, you didn't buy it to trade it, but to make a return. Look to see if any of it is in trouble of bankruptcy. But your broker might tell you to sell.
Why, because one they make money churning and two someone picks up a 13% return on your loss. If you do it, you are nuts. Stocks are a different story, but you didn't own those for income, but for growth. In slowing growth, you should expect fluctuations. You don't sell these either. How the money fleecers are getting everyone to churn these accounts due to this world ending event is going to be the story. Basically, you sold for half price, sold low. If you look you will find the buyer was your broker. What a deal, huh?
I surely don't know what is going on, I, like you, just have questions. But I am surely skeptical. If I were on CNBC, never going to happen, I would be asking these questions. Somebody tell me specifically the issue that is truly a material number that is affecting the markets? If I were in charge, I would let the chips fall where they might. Right now, for sure, JP Morgan and Bank of America have to be very happy for this non collapse.
A slowing economy is not something new. How our socialist government deals with it, is very new. I don't like it. Here is another analogy. For years I have heard the poor declare someone throw them a bone. How would a trillion$ help them out? But let poor Wall Street get the hiccups, and its "how can we help you sir". I am a bit right of center, but you have to admit, throwing a trillion at the money people seems a bit skewed, don't you think?
i wish that was all i was gonna loose!!!
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