Another landmark day for my investment savings

[Vortex]

This is so bad I can't even make a snarky comment. Combined with day #33 straight over 100 degrees (today it was 108) I am getting just a little pissed off.

[SC Cheesehead]

This is so bad I can't even make a snarky comment. Combined with day #33 straight over 100 degrees (today it was 108) I am getting just a little pissed off.

At least you're retired, Jim; I'll prolly have to keep working until I'm 100...:depress:

[Vortex]

Thanks Rex, I just needed to vent... :)

[Shaijack]

100, you retiring early.

[SC Cheesehead]

100, you retiring early.

Smaatazz... ;) ------> :D

The way it's going, another couple months and my retirement account plus 50 cents oughta get me a bowl of soup... :shake:

[RacerX]

If it's in, don't move it. You can not do as the masses and move as the sheep do. It's a good buying time even if it goes lower. Quality divi stocks are at a nice low. Ride it out for the next few years and you'll be a-ok. ;)

[SC Cheesehead]

Well, maybe this mess has an upside:

http://www.internationalbeerday.com/ibdnew/wp-content/uploads/2010/07/text-with-beer2.png

Today is International Beer Day; enjoy! :beer:

http://www.internationalbeerday.com/

[RacerX]

Well, maybe this mess has an upside:

http://www.internationalbeerday.com/ibdnew/wp-content/uploads/2010/07/text-with-beer2.png

Today is International Beer Day; enjoy! :beer:

http://www.internationalbeerday.com/
You sir, have made my day! :beer:

[Ozark Marauder]

Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.

[Blackened300a]

Smaatazz... ;) ------> :D

The way it's going, another couple months and my retirement account plus 50 cents oughta get me a bowl of soup... :shake:

Really Rex?? That sucks!

[gdmjoe]

And unforunately .....
It's always darkest before it gets pitch BLACK
http://www.gdmjoe.com/nonono.gif
.

[Fosters]

And unforunately .....
It's always darkest before it gets pitch BLACKhttp://www.gdmjoe.com/nonono.gif
.
:stupid:

What I'm not sure is, if this is the "hope" part, or the "change" part...

[Mr. Man]

Smaatazz... ;) ------> :D

The way it's going, another couple months and my retirement account plus 50 cents oughta get me a quarter... :shake:
Fixed.........;)

[Joe Walsh]

Aside from the horrible job market, high unemployment rate, and stalling economy we can thank our elected officals in Congress for the stock market's plunge.

They did such a great confidence inspiring job in handling the debt ceiling issue that investors were certain to flee the market.....:rolleyes:

[Mr. Man]

Aside from the horrible job market, high unemployment rate, and stalling economy we can thank our elected officals in Congress for the stock market's plunge.

They did such a great confidence inspiring job in handling the debt ceiling issue that investors were certain to flee the market.....:rolleyes:

Now Joe Walsh, it's not fair to pick on Congress while they are on vacation for the next month. I think Congress should be able to go home and make sure their pomegranate trees are OK. I mean these guys barely work, get fantastic benefits and aren't generally held accountable for any of their actions. And to boot they only make like 150K a year. All that great stuff they get for doing nothing, I can see how the disbelief on their part that they get all that would be mind-blowing enough you might need a months vacation to reabsorb it all year after year after year after year. So come on Joe Walsh give Congress a break:D:rolleyes:

[sailsmen]

If you believe DC you need to stop saving and spend more, then every thing will be GREAT as in GREAT COLLAPSE.
Increasing the Public Debt in 2 years by 55% from 42% of GDP to 63+% while increasing spending in 3 years by 29% is a spending problem.

It is very simple math. Using OMB & BLS data since 1948 whenever Fed spending exceeded 20% of GDP for 2 or more years unemployment went up ~50% regardless of wether the Economy grew or shrank.

20% is the tipping point at which the Fed crowds out the private sector resulting in a loss of jobs.

Pres Obama's 2009 10 year Budget per the CBO spending is 21.5%+ of GDP for every year through 2019. This will perpetually keep over 8,000,000 out of work vs Fed spending at less than 20% of GDP. In the past 10 years Fed spending has doubled. Were people suffering for a lack of Federal spending in 2001 or 2008?

Per Orszag who headed up the OMB Fed spending is unsustainable, stated 7-12-11 "This is only more evidence that the right policy response is a combination of more aggressive action to bolster the job market now and much more deficit reduction enacted now to take effect in a few years. On both strategies, we should be as bold as we can."

Only 4 out of 10 people work for the private sector. That means each private sector worker must carry 1.5 people. Total Gov't spending, Fed/State/Local, is $40,250 per private sector worker. No economy in the World can carry a Gov't overhead of $40,250 per private sector worker. Other countries have far more efficient Gov'ts. Example the Average Fed employees makes $123,000 per year in salary and benefits, double the average private sector worker.


Per the White House OMB;


Year Fed Tax Revenue as a % of Economy Fed Spending as a % of Economy Borrowed as a % of Economy

Average
1950-2007 17.8% 20% 2.2%


2008 17.5% 20.7% 3.2%


2011 14.4% 25.3% 10.9%.


How long could you borrow 10.9% of your economy before you would not be able to pay it back?


The Deficit is$1,600,000,000,000 or ~11% of GDP per year. Per the CBO/IMF/S&P/Moodys itneeds to be $450,000,000,000 or ~3% of GDP per year.


Per the CBO rolling back the Pres Bush Tax Cuts for those making over $250K per year generates $70,000,000,000. This leaves a short fall of $1,600,000,000,000-70,000,000,000-450,000,000,000=1,080,000,000, 000 left for to cut.


Roll back all the Bush tax cuts for everyone. That is another $300,000,000,000 leaving $780,000,000,000 left to cut.


Where is the $780,000,000,000 from? We will have to cut spending 21.6%, ($780mm is 21.6% of $3.6 Trillion current spending) after raising everyone who pays income tax and putting new income tax on millions who currently don't pay income tax.


As you can see simple math dictates that Obama roll back ~85% of his increases in spending

The solution is very simple roll back Federal spending to 2008 levels, this 2008 level was established by a Dem Cong & Repub Pres. Essentially roll back the Pres Obama 29% increased spending. This solution was in the July 2010 CBO report.

The alternative is to continue to end up Argentina 2001 followed by WW.


McClatchy Washington Bureau


Posted on Mon, Dec. 06, 2010

Democrats could scuttle Obama-GOP tax cut deal

Steven Thomma and David Lightman | McClatchy Newspapers

last updated: December 06, 2010 11:06:09 PM

"the plan would total about $900 billion over two years — adding that to the projected federal deficit and the federal debt. Extending the Bush-era tax cuts would cost the Treasury $3.7 trillion over 10 years, including $3 trillion in taxes on annual incomes below $250,000 and $700 billion on incomes higher than that."

[prchrman]

Bush added 2.007 tril to the debt over 8 years, BO has added 2.7 tril in his first 2 years and is on course to make it 4.351 tril for 3 years. Bush added .250 tri per year, BO 1.45 tril per year. If you lay 1.45 til dollar bills flat (.04" thick) and stack them on top of each other it would go past the moon, not end to end but flat. My friends we have a spending problem.

OBTW we are at 3.8 til spending, 08 was 2.9 tril so we would still be .500 in the hole.

[LIGHTNIN1]

You guys get too excited over a LITTLE bad news. Our leader says everything is fine. Go eat your peas. When we wake up monday morning everything will be in order.:D

http://www.reuters.com/article/2011/08/06/crisis-idUSLDE77504R20110806

[Ozark Marauder]

I never did like peas....

[SC Cheesehead]

I never did like peas....

I like peas.

I don't like.... oh, never mind...:mad2:

[Vortex]

Saw this today and thought it was pretty interesting:

http://www.boston.com/news/politics/articles/2011/07/31/the_debt_crisis/

[Fosters]

Saw this today and thought it was pretty interesting:

http://www.boston.com/news/politics/articles/2011/07/31/the_debt_crisis/

I don't know a single conservative happy with Bush for what he did... but if someone's an Obama fan, they should have LOVED Bush. The sad part is, even though Bush has a bigger slice of the pie than probably all previous presidents combined, Obama is on track to make him look like a fiscal tightwad... :shake:

[LIGHTNIN1]

I don't know a single conservative happy with Bush for what he did... but if someone's an Obama fan, they should have LOVED Bush. The sad part is, even though Bush has a bigger slice of the pie than probably all previous presidents combined, Obama is on track to make him look like a fiscal tightwad... :shake:

QE3 and QE4 on the way. Don't they spell that TRILLIONS?

[Fosters]

QE3 and QE4 on the way. Don't they spell that TRILLIONS?
Depends how you look at it:

Today the dow is down another 550-600 points. A few more days like this, and a powerball winner in a few months will be able to buy himself quite a few companies for MILLIONS :D

[FordNut]

One thing to consider... A down market like this it the BEST time to do a rollover from IRA to Roth IRA. I've signed the papers, just waiting for the bottom and I'll make the phone call.

[Vortex]

One thing to consider... A down market like this it the BEST time to do a rollover from IRA to Roth IRA. I've signed the papers, just waiting for the bottom and I'll make the phone call.


That is sage advice, if you are still working you would be smart to get a Roth IRA, you can put I think up to 5k per year in one. You already paid the tax on the money, when you do retire its tax free plus all that interest.

[guspech750]

That is sage advice, if you are still working you would be smart to get a Roth IRA, you can put I think up to 5k per year in one. You already paid the tax on the money, when you do retire its tax free plus all that interest.

$$$$$$ yep!! Been doing that!!


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