Comments on: Second Stimulus Speculation Submarining Bonds and Supporting Gold

By: elaine

elaine — Thu, 05 Nov 2009 07:22:05 +0000

As for gold, I own a few shares of GLD & it’s doing well, also own a few shares of ABX (I’m learning the hard way) mining stocks basically just mirror the general market. FDR confiscated gold & it could happen again. I’ve said this before but it seems appropriate to repeat in this context: cap gains on bullion is 28%, it’s risky as a hedge. Actually I suspect owning 18 or 24k jewelry is more enjoyable. The 12 or 13 Trillion dollar national debt is unsustainable, all the Keynesians are just whistling past the graveyard. Almost everyone I know personally is in total denial about this crisis, they will not discuss it (like that’s going to make it better) guess it’s why I come here to kick it around. So far, lots of opinions but no solutions. If we escape a depression it’ll be a miracle. I don’t believe we’re outta the woods.

By: elaine

elaine — Thu, 05 Nov 2009 01:24:05 +0000

I doubt the FED rate will go up in any meaningful way before the 2012 elections. With banks borrowing at 0% to .025% lending at 4.9%, paying out 1.6% on CDs & less than 1% on savings accounts (already being outstripped by inflation at 2.6%) Treasury, the FED, & the Prez seem willing to sacrifice a decade’s worth of senior’s savings to scramble to meet their goals. It’s the ole greater good argument. In 2011 Grandma will pay 20% tax on her dwindeling savings…thanks Hillary, Buffet, Obama. $10,000 @ 1.6% =$160 -20% cap gains tax=$32, which means Grandma gets to keep $128 bucks for loaning a bank $10,000 for a year!!! yippee. Meanwhile her Medicare payments & insurance have already outstripped her “profit.” Another example of Obama rewarding work not wealth.

By: Brodie

Brodie — Wed, 04 Nov 2009 21:20:31 +0000

foxyladi, you’ve got that right! That’s what China did & it worked. That’s pitiful.

By: Diana L. C.

Diana L. C. — Wed, 04 Nov 2009 21:15:30 +0000

As usual, I have little knowledge about things financial. I will be quite concerned if they do a second stimulus bill.

Does this mean that now is the time I should round up my meager stash of unwanted jewlery and send it off for fast cash?

By: foxyladi14

foxyladi14 — Wed, 04 Nov 2009 20:00:55 +0000

the first stimulus would have worked,if they had given that money to us,
we would have stimulated the heck out of the economy

By: Peggy Sue

Peggy Sue — Wed, 04 Nov 2009 17:04:11 +0000

I suspect proposing a second stimulus bill will be the breaking point. Last night’s exit polls revealed the biggest concern for voters was the direction of the economy and rising unemployment. Regardless of the WH spin, Obama owns this mess now and you’re not going to convince people that spending more taxpayer dollars is going to turn this faltering economy around.

I think Obama missed his chance to rein in the banksters [instead he's rewarded them] and get a handle on our rising, unsustainable debt.

Another Stim Bill? Await the howl.

By: Docelder

Docelder — Wed, 04 Nov 2009 15:43:17 +0000

A second stimulus will only build upon the already out of control fiscal deficit which will need to be funded by increased government borrowing.

Other peoples money is the secret sauce for the democrats. They believe that if they only had enough of other peoples money they could do anything. If only. Democrats have their be’s, do’s and have’s backwards. They think if only they have what the wealthy have, then they could be wealthy themselves and do as the wealthy do. It doesn’t work that way. If you do what wealthy people do, then you will become wealthy and after becoming wealthy, then you will have what wealthy people have. This goes for individuals, for families, for communities and for nations. Wealth can’t be artificially granted or legislated. It doesn’t work that way. India is a nation of hard workers and they are doing productive things. China is a productive country doing things which produce wealth. They are in many ways what we once were. They are what we are abandoning. We were never wealthy just because we were Americans, but because we produced wealth. That is past tense.

By: Craig Della Penna

Craig Della Penna — Wed, 04 Nov 2009 15:39:18 +0000

Sounds like the other shoe is untied and coming loose…