tag:blogger.com,1999:blog-27697009.post942331774955657456..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : Our Government Has Destroyed Compound InterestJim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-27697009.post-85053399641796988282013-11-23T13:27:03.400-08:002013-11-23T13:27:03.400-08:00Hi Anon 10:33
I think you are confusing the word ...Hi Anon 10:33<br /><br />I think you are confusing the word "paradigm" with the word "insanity"<br /><br />Investment strategies changed when interest rates went to zero. Of course most retirement funds reacted too late and are doomed because of it. There are many "new" old ways to make money.<br /><br />When you squeeze a balloon, it moves out into another area, and returns back to normal sooner or later.<br /><br />The idea that it would be stupid not to follow other countries down the drain, escapes me.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-13514207683601745202013-11-21T22:33:40.215-08:002013-11-21T22:33:40.215-08:00You want yield, then invest in emerging markets bu...<br />You want yield, then invest in emerging markets but no, you want the safety of the u.s. but the return of brazil, world doesn't work that way.<br /><br />True, the fed is "screwing" people through inflation but that is the system we have. And when everyone else, and I mean every other country, is printing, we would be stupid not to do it in the u.s.<br />We do want to export things right or should we just isolate ourselves from the rest of the world. <br />Currencies are relative, as long as yours stinks the least, you are good. And for the 100th time, we don't need 50 billion in gold bullion to back our currency, all we need is a 50 billion dollar air craft carrier, 50 billion in roads and highways, 50 billion in the best universities, etc, etc....<br /><br /><br />We are in a new paradigm...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-48625434011812264502013-11-21T18:51:01.811-08:002013-11-21T18:51:01.811-08:00Hi Anon 7:13 and 3:38
We need to look at what peo...Hi Anon 7:13 and 3:38<br /><br />We need to look at what people were planning on for retirement 20 to 40 years ago. What is happening now, has ripped the rug out from under them.<br /><br />You can see a similar parallel with rent control. Original investors had a good deal until rent control, then they were screwed, they couldn't sell the unit and they couldn't raise the rent.<br /><br />The Federal Reserve has changed things. We will see new ways to make money, they are just not the way we had been brought up to expect.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-31980186063181302892013-11-21T07:13:08.980-08:002013-11-21T07:13:08.980-08:00Are we also not entitled to negative interet rates...Are we also not entitled to negative interet rates?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-63348977340929252172013-11-21T03:48:44.582-08:002013-11-21T03:48:44.582-08:00You are not entitled to get interest on your cash ...<br />You are not entitled to get interest on your cash holdings...it's not divine right!<br /><br />The fed res steered short term interest rates to zero in order to chase savings out into the market. CD's and such are dead money, and in order to increase monetary velocity, interest rates have been set to near zero.<br /><br />In time it will adjust but no one is entitled to a certain percentage return on their savings.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-90524328704101977602013-11-19T19:00:23.155-08:002013-11-19T19:00:23.155-08:00Hi dearieme
There doesn't seem to be any taxe...Hi dearieme<br /><br />There doesn't seem to be any taxes on gold or silver here--yet.<br /><br />like you said, "How long this law will last, Lord knows."<br /><br />I do know that it became illegal to own gold in the US after 1933 see Executive Order 6102. In 1974 it became legal to own gold again.<br /><br />Where to from here? is my question.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-80935359140316848252013-11-18T14:45:23.438-08:002013-11-18T14:45:23.438-08:00"That's what separated Einstein from his ..."That's what separated Einstein from his peers....love of math": oh what rubbish.<br /><br />What separated Einstein was his genius at theoretical physics. He admitted to being a dud at maths by the standards of some of those around him.deariemenoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-65093576042859100552013-11-18T06:29:50.661-08:002013-11-18T06:29:50.661-08:00I included growth rate. As for manipulation, the F...I included growth rate. As for manipulation, the Fed can't control long-term rates except marginally.<br /><br />But, really everything has an art component....math...math is an art (that's why BA and MA's in pure math).<br /><br />That's what separated Einstein from his peers....love of math....deduction vs induction...come up with an idea then see if it happens, rather than cause and effect.<br /><br />That's even more important since globalization. Quantum physics rather than a cause/effect world...everything is connected.<br />Joseph Oppenheimhttps://www.blogger.com/profile/09037175611181710409noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-55829163777898202262013-11-18T05:16:15.100-08:002013-11-18T05:16:15.100-08:00We have a handy law over here. If you buy gold so...We have a handy law over here. If you buy gold sovereigns minted after 1837, not only are they free of VAT (a sort of sales tax) they are free of Capital Gains Tax.<br /><br />How long this law will last, Lord knows.deariemenoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-33129955184156413282013-11-18T00:14:41.207-08:002013-11-18T00:14:41.207-08:00I gave up on stocks. We were trained to look at fu...I gave up on stocks. We were trained to look at fundamentals, but what drives the markets now appears to be coming from the manipulation by the FED , a private cartel. The PE ratio does not matter as much anymore. <br /><br />Anyway, any PE analysis should include growth rate in addition to comparisons to interest yields, but I am sure you left that out for brevity rather than oversight.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-74115110340626158552013-11-17T21:01:21.506-08:002013-11-17T21:01:21.506-08:00BTW, in 1940, many years before Einstein's dea...BTW, in 1940, many years before Einstein's death, 10 year Treasuries were abt where they are now, and for abt 100 years before abt 1970 were mostly 3-4%. So, now is not so unusual. Sure, problems could happen, but as long as they are under 4%, pretty normal.<br /><br />Also, the best way to value a quality stock is the inverse of the PE (the earnings yield) vs 10 year T rate. So, for a quality stock with a PE abt 20, that means it earns abt 5%, a pretty good return, plus if it raises its dividend each year and/or grows earnings just 2% each year. So, pretty good, especially for a company with low debt and almost no chance of bankruptcy.<br /><br />Sure, a stock can tank anytime, so are they likely to come back. So, as for safety, a pretty safe investment, even now, for a long-term investor. Any drops are just opportunities to buy more.<br />Joseph Oppenheimhttps://www.blogger.com/profile/09037175611181710409noreply@blogger.com