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Strategies & Market Trends : Mu Gamma Lambda

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To: Jorj X Mckie who wrote (1916)	7/11/2001 1:18:55 AM
From: Augustus Gloop	Read Replies (10) of 10077

What has this market decline cost us in real terms? As I sit back and review my statements it's quite easy to conclude that I, and nearly everyone else has seen a setback in our portfolios. Trillions of dollars have evaporated leaving people scratching their heads. Faith in the stock market and the general economy has been lost. Jobs have been lost. Careers have been destroyed. All this and more has occurred in less than an 18-month period. Pretty amazing when you stop and think about it. I find myself doing the 2000 version of the Talking Heads saying "self – How did I get here?" While I wont rule out a large degree of stupidity on my part I can't help but feel we had some help. Furthermore I think the long-term costs will be amazing! I see much written about the NASTY BUBBLE we had going in the equities markets which no doubt is true (it's also Monday morning quarterbacking). Without question we as a nation and a people were willing to take risks far greater and unlike any our parents (who either saw or heard first hand about the depression) had taken. But I can't help thinking back to last year in June of 2000. The Fed had already raised rates by 1.25% in the prior 9 months. Gas prices were at or pushing $2.00 per gallon. Economists were saying things are slowing down fast! Yet the Fed in its omnipotent wisdom decided to push the envelope for another 50 basis points. Which leaves me with a nagging question – WHY? Which is followed by another – WHY DIDN'T THE FED HAVE THE COURAGE TO ADMIT THEY SCREWED UP EARLIER THAN JANUARY OF 2001? Now I'm sure many of you brilliant economist out there can find a reason to justify this but before you reply let me tell you I'M NOT BUYING! So don't waste your breath! The simple fact is the FED WAS WRONG. Now that's not to discount the fact that we all had the option to sell at any point but we the people are not running the show – THE FED IS! When things were great Greenspan strutted around like a Hollywood celebrity. Well guess what……times are tougher now and I don't know about you people but I don't see him as often as I did. Was there a bubble and could we all have sold – YOU BET! Did poor decisions hasten the decline – WITHOUT a doubt. Between fuel increases and rate increases those people managed to take an economy that was growing at 5% (which I understand was in part as a result of y2k) and send it into a tailspin to the point of zero growth. THAT IS AMAZING! The cost goes way beyond just the trillions (just LOL) of dollars lost. It gets into bigger issues such as privatization of Social Security. There isn't a politician in his right mind that would broach this issue after what we've seen. The democrats would have a field day. They're loving this because it means that those fat bastards in Washington can blow smoke up our ass to keep us funding an outdated POS plan. GET REAL! That is a huge loss folks and believe me this market drop has set that notion back ten years. Whether you know it or not YOU pay 15.3% of your income in social security. Now you may say wait there Gloop, I only pay 7.65%. Well, you're half-right. But your employer also kicks in 7.65% on your behalf. There is no doubt in my mind that with 15.3% in addition to what we already save in our 401k, SEP, IRA, Simple IRA's, Roths, 403b's etc that we would be better off with our SS money private and under our own name. Sure we would still have to pay something for Medicare and Medicaid and both our private SS and the Care/Caid payments would need to be payroll deducted as they are now. But make no mistake people…..WE WOULD BE BETTER OFF! Even if the money had to be placed in passbook savings like accounts we would come out ahead. Washington would not be fighting so hard to keep things the way they are if it wasn't good for them……that you can take to the bank. Yes people….this downturn hurts but the pain goes way beyond your statements. This has been an act of Civil disobedience by one Agustus Gloop. Ads have been paid for by the I think Republicans, Democrats and Alan Greenspan Suck committee. Now we'll return you to your local braodcast already in prgress. <g>

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