Comments on: Economic/Market Highlights 12/01-12/05……”Abbie Normal”

By: Karma

Karma — Mon, 08 Dec 2008 23:40:10 +0000

‘Abbie Normal’….economic news delivered with a Young Frankenstein line…love it! One of the first things I read this morning.

Please don’t be brief. Familiar topics or not. Every bit helps confirm or inform ideas I’ve had while hearing the reports.

Thanks.

By: LD

LD — Sun, 07 Dec 2008 23:51:14 +0000

Lizzy,

When you write normal bank interest, do you mean “savings rates”? If so, I do not think so, those savings rates are closely linked to the Fed Funds rate which is now 1% and likely headed to an amenic level of .5% this month.

That said, you can put your money into short term CDs at levels approaching 4% if you shop around. Even at that, I would encourage you to put your bank in competition by “shopping” a higher rate from another bank to them and see how your bank responds.

Thanks for the plug.

By: Lizzy

Lizzy — Sun, 07 Dec 2008 23:37:57 +0000

Excelent post. I have been reluctant to buy equities for a long time because they seemed overpriced Is there much chance that normal bank interest will come to a reasonable level.

By: LD

LD — Sun, 07 Dec 2008 19:49:48 +0000

Linda…I hope not. That said, we need to understand what is going on so we can prepare accordingly.

Thanks for the plug.

By: WildChild

WildChild — Sun, 07 Dec 2008 19:23:15 +0000

It was a pleasure talking to you.

By: I'm a Linda too

I'm a Linda too — Sun, 07 Dec 2008 19:21:23 +0000

LD, thanks you for again another informative post.

Maybe Bill was seeing WAAAYYY in to the future and that 5000 is yet to come?

By: LD

LD — Sun, 07 Dec 2008 18:07:04 +0000

I appreciate the points you raise. Clearly the status quo is not an option. I am all for strict and robust restrictions and regulations. You hit the nail on the head in defining “risk” vs “gaming”.

Well said and I thank you.

By: WildChild

WildChild — Sun, 07 Dec 2008 17:19:14 +0000

(frigging dyslexia) They don’t want it..

By: WildChild

WildChild — Sun, 07 Dec 2008 17:17:32 +0000

they don’t it for anybody else..

By: WildChild

WildChild — Sun, 07 Dec 2008 17:15:43 +0000

My argument was in response to your question. I disagree with it for your reasons. I actually want people to walk the cutting edge and push the limits of mankind in the universe. But a distinction needs to be made between risk taking and gaming. These bubbles are being caused by the latter rather then the former. Because of the limited downside the LLC provides, CEO’s of these multinational conglomerates are more then willing to lie through their teeth to all of us in pursuit of their next record profit. If they have to lie to us in their accounting or lie to us in their analysis or just lie to us with the bullshit hype we get about them and what they are doing, they’ll do it because they are not risking anything. They have their safety net. They don’t it for anybody else in our society but they surely want it for themselves.

I think if there is going to be a limited downside then there has to be a limited upside as well. With a safety net underneath you, you don’t get to make a hundred million unless you are the guy or gal that actually came up with the thing that was so new and unique that you could patent it. Simply collecting other companies through mergers and acquisitions will no longer be a valid excuse for the salaries these “captains of industry” (Bwah ha ha) make. That and after the IPO they should be required to buy back their shares within a certain time frame. The greed of the shareholder has become an excuse for all kinds bad decision making at the top. Implement these two things and we might actually get the greedy little cowards out of business and get the professionals in to replace them.

By: LD

LD — Sun, 07 Dec 2008 16:35:04 +0000

Fiscal…Great idea. I will put some thought into that.

Maybe I can address it during tonights’ show.

By: fiscalliberal

fiscalliberal — Sun, 07 Dec 2008 16:04:07 +0000

With all this Federal spending, we know things are changing. An important parameter is going to be if Asia continues to support our deficit spending. I suspect that was the purpose of Paulson going to China to assess their interest in continuing their support.

We need to be aware that China, in interviews is making noises on how the US needs to have some respect to their creditor nations. I translate that: forget any fair trade issues being addressed. So when any Senator like Debbie Stabenow starts yapping about fair trade, we might remind her about the impact of the debt.

At some point this insane borrowing or printing money is going to bring on inflation. Greg Mankiew (economist like Krugman)is talking about strategies of targeting inflation. We need to start thinking about what our strategies as individuals will be.

LD – that might be a subject for a separate post or broadcast.

By: LD

LD — Sun, 07 Dec 2008 13:06:21 +0000

I don’t know about that. I think we want to further promote an economy in which individuals take risk, albeit prudent risk and measured risk which can be properly monitored. I think we want the same result but I think we differ on the way to get there. Eliminating LLCs would likely lessen risk taking and that is not productive.

By: LD

LD — Sun, 07 Dec 2008 13:02:33 +0000

Just….You make some interesting points. I appreciate your sharing them.

By: LD

LD — Sun, 07 Dec 2008 13:00:14 +0000

Steve,

“Discouraged” is not and never has been in my vocabulary. Thanks for the feedback and the plug.