Comments on: Links 12/13/08 http://www.nakedcapitalism.com/2008/12/links-121308.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: River http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29235 River Sun, 14 Dec 2008 13:15:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29235 Yves, thanks for listing Jessee's posting by Hudson and Sommers and thanks to Jessee for posting it.<br/><br/>I also believe that we are at the end of an era. The worst thing that could happen to the US did happen. The CCCP collapsed. While the CCCP was still the enemy du jour the US had an opponent to lean against. Everything that the US did was justified by 'fighting the evils of communisim'. <br/><br/>The Viet Nam debacle was carried out to 'stop the spread of communisim'. After we left Nam communisim did not spread any more than it would have had we not gone there. I believe that the era that is ending is not just an economic revolution but an end to various strategic inativities that were put in place way back when McKinder proposed his principal, prior to WW1. An enormous sea change, iow.<br/><br/>Now the US has military installations in approx 170 countries, ostensibly to stop the spread of terrorisim, at an enormous cost to taxpayers (actually, our creditors). <br/><br/>The entire stategic posture of the US needs to be reconsidered. What we are attempting is not economically sustainable. Guns or butter, pick one. Yves, thanks for listing Jessee’s posting by Hudson and Sommers and thanks to Jessee for posting it.

I also believe that we are at the end of an era. The worst thing that could happen to the US did happen. The CCCP collapsed. While the CCCP was still the enemy du jour the US had an opponent to lean against. Everything that the US did was justified by ‘fighting the evils of communisim’.

The Viet Nam debacle was carried out to ’stop the spread of communisim’. After we left Nam communisim did not spread any more than it would have had we not gone there. I believe that the era that is ending is not just an economic revolution but an end to various strategic inativities that were put in place way back when McKinder proposed his principal, prior to WW1. An enormous sea change, iow.

Now the US has military installations in approx 170 countries, ostensibly to stop the spread of terrorisim, at an enormous cost to taxpayers (actually, our creditors).

The entire stategic posture of the US needs to be reconsidered. What we are attempting is not economically sustainable. Guns or butter, pick one.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29181 Anonymous Sun, 14 Dec 2008 02:05:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29181 Notice that since the early to mid-80's the Dow Jones Industrial Average, Nasdaq, and the S&P 500 may suggest serial correlation. Someone should do some mathematical analysis on this. I'd be interested to hear comments on this. As Ritholtz suggests, we're looking for a nice smooth line, with consistent almost unbelievable gains. From the 80s on, if you throw out the bubbles in each of these graphs, it looks very much like a nice pretty line extending to the sky. Year on year growth, as any financial adviser at any mutual fund or retirement investing firm will say, can be expected to be in the 10% range over the long haul - because the stock market always goes up. <br/><br/>An interesting note: the invention of the 401(k) in 1978 and almost half of U.S. corporations offering them by around 1983 correlates to the beginning of the last roughly 30 years of increases in the DJI. The universalization of 401(k)'s is today easily apparent. <br/><br/>Are all the U.S. workers contributing to 401(k)s and IRAs just a part of one big Ponzi Scheme? Notice that since the early to mid-80's the Dow Jones Industrial Average, Nasdaq, and the S&P 500 may suggest serial correlation. Someone should do some mathematical analysis on this. I'd be interested to hear comments on this. As Ritholtz suggests, we're looking for a nice smooth line, with consistent almost unbelievable gains. From the 80s on, if you throw out the bubbles in each of these graphs, it looks very much like a nice pretty line extending to the sky. Year on year growth, as any financial adviser at any mutual fund or retirement investing firm will say, can be expected to be in the 10% range over the long haul – because the stock market always goes up.

An interesting note: the invention of the 401(k) in 1978 and almost half of U.S. corporations offering them by around 1983 correlates to the beginning of the last roughly 30 years of increases in the DJI. The universalization of 401(k)'s is today easily apparent.

Are all the U.S. workers contributing to 401(k)s and IRAs just a part of one big Ponzi Scheme?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29180 Anonymous Sun, 14 Dec 2008 01:59:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29180 Sounds like some jail time might be in order for Mr. Liddy. Sounds like some jail time might be in order for Mr. Liddy.

]]> By: Glen http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29175 Glen Sun, 14 Dec 2008 01:06:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29175 AIG's at it again - more "retention bonuses" when will it all end. http://www.bloomberg.com/apps/news?pid=20601087&sid=al7HigWEZYgA&refer=home AIG's at it again – more "retention bonuses" when will it all end. http://www.bloomberg.com/apps/news?pid=20601087&sid=al7HigWEZYgA&refer=home

]]> By: rootless cosmopolitan http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29170 rootless cosmopolitan Sat, 13 Dec 2008 23:54:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29170 Exactly! Just let free markets do their thing w/o evil government interference, and everything will be just peachy. We all will be rich and happy.<br/><br/>BTW: Who wants to buy my bridge?<br/><br/>rc Exactly! Just let free markets do their thing w/o evil government interference, and everything will be just peachy. We all will be rich and happy.

BTW: Who wants to buy my bridge?

rc

]]> By: River http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29151 River Sat, 13 Dec 2008 18:08:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29151 Off Topic Question: <br/><br/>I have read accounts by safe companies, stores like Home Depot that sell home safes, etc, that safe sales are up by 50% in some areas of the country.<br/><br/>If 30 million Americans (approx the number that own their homes free and clear) each removed $30,000 from their bank and placed it in their new home safe (or under a mattress), how big would the deflationary impact be on the US economy? Off Topic Question:

I have read accounts by safe companies, stores like Home Depot that sell home safes, etc, that safe sales are up by 50% in some areas of the country.

If 30 million Americans (approx the number that own their homes free and clear) each removed $30,000 from their bank and placed it in their new home safe (or under a mattress), how big would the deflationary impact be on the US economy?

]]> By: GloomBoom.com http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29150 GloomBoom.com Sat, 13 Dec 2008 18:06:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29150 It's supply and demand, and the government is once again messing up the market. They need to exit and let the free market do its thing, but I wouldn't bet on it especially with Obama on the way. Check out gloomboom.com - it will make your day! It’s supply and demand, and the government is once again messing up the market. They need to exit and let the free market do its thing, but I wouldn’t bet on it especially with Obama on the way. Check out gloomboom.com – it will make your day!

]]> By: Rivers http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29149 Rivers Sat, 13 Dec 2008 17:59:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29149 Because treasury is issuing so many debt instruments that business borrowing is being crowded out. Because treasury is issuing so many debt instruments that business borrowing is being crowded out.

]]> By: fresno dan http://www.nakedcapitalism.com/2008/12/links-121308.html#comment-29138 fresno dan Sat, 13 Dec 2008 16:11:00 +0000 http://www.nakedcapitalism.com/2008/12/links-121308/#comment-29138 Bloomberg "While rates on everything from four-week Treasury bills to 30-year bonds fall to all-time lows, companies are paying an average 10.8 percent on their debt, up from 6.53 percent in January, according to Merrill Lynch & Co.’s U.S. Corporate & High Yield Master Index. The premium investors demand for lending to companies instead of the government rose to 8.85 percentage points yesterday, compared with 2.96 percentage points at the start of the year, the index shows."<br/><br/>Seems related to me about the previous post about deflation. Treasury interest goes lower and lower, but business borrowing cost goes higher and higher. Wonder why that is? Bloomberg "While rates on everything from four-week Treasury bills to 30-year bonds fall to all-time lows, companies are paying an average 10.8 percent on their debt, up from 6.53 percent in January, according to Merrill Lynch & Co.’s U.S. Corporate & High Yield Master Index. The premium investors demand for lending to companies instead of the government rose to 8.85 percentage points yesterday, compared with 2.96 percentage points at the start of the year, the index shows."

Seems related to me about the previous post about deflation. Treasury interest goes lower and lower, but business borrowing cost goes higher and higher. Wonder why that is?

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