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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: SOROS who wrote (10249)	12/11/2002 12:46:25 AM
From: Sig	Read Replies (1) \| Respond to of 89467

SOROS: <<On these two points below, is there a source that shows comparisons on these two measurements at various critical points in history? If so, can you provide a link? Thanks.>> Not me. >>> "United Airlines isn’t the only company that is need of spare billions. A report in the latest Elliott Wave Financial Forecast quotes an ominous statistic: liabilities for the 30 Dow Stocks are $3.3 trillion. The net worth of the 30 Dow stocks is only $728 billion of which $218 billion is goodwill. Tangible net worth is only $510 billion, meaning that the Dow 30 stocks have $6.5 dollars of debt for every $1 dollar in equity." "Since the beginning of 1998 the US under the Greenspan Fed has produced $9.1 trillion of credit market debt. And what has all that debt generated? It's generated Gross Domestic Product of about $2 trillion. In other words, it's taking about $4.5 trillion in bank credit to produce $1 trillion in GDP. Economically, we're running up the down escalator.">>>> If the average cost of the loans to company were 6% a year, they would (only ?) owe $198 bil/year in interest plus some minimum on the debt. That money owed on the loans is paid before gross profits are computed, after which taxes up to 50% are extracted to detemine net earnings. And all the employees paid by the company owe taxes to the government. The sum that the government gets back is considerable. Therefore if the 30 companies are reporting net earnings and not losses the system is working, the money is flowing, the loans are being paid. Perhaps if you could add the total earnings of the 30 companies and it would give a clue as to whether the system is sustainable, but if is not, what is the alternative solution that will keep perhaps millions employed until earnings can improve. ? IMO somewhere in the future will be serious inflation, perhaps loan writoffs as is common in S America. And the little guy always pays. Sig Here are the Dow 30 .I may have time to look at earnings money.cnn.com

To: SOROS who wrote (10249)	12/11/2002 1:15:35 AM
From: Sig	Respond to of 89467

SOROS: Here is a portfolio of the 26 Dow stocks I can remember the symbols for; WOW. I am a tech investor, wish those techs companies had earnings and dividends like these: There are all positive. So I dont think you got a problem with the DOW 30 being able to support loans Regards Sig finance.yahoo.com

To: SOROS who wrote (10249)	12/11/2002 1:24:10 AM
From: smolejv@gmx.net	Respond to of 89467

what about... dailyreckoning.com

To: SOROS who wrote (10249)	12/11/2002 9:45:25 AM
From: crdesign	Read Replies (1) \| Respond to of 89467

"Since the beginning of 1998 the US under the Greenspan Fed has produced $9.1 trillion of credit market debt. And what has all that debt generated? It's generated Gross Domestic Product of about $2 trillion. In other words, it's taking about $4.5 trillion in bank credit to produce $1 trillion in GDP. Economically, we're running up the down escalator." A peasants point of view: SOROS, I wish to dovetail a personal situation with your concern. Here's our financial profile as painful and embarrassing as it seems : We are 35 years old and have a combined annual earnings* (*the time we sell ourselves to others)of $85k. We have Rental property (passive income) of $21k Our total outstanding debt, Mortgage, Line of credit, credit cards; $190k with interest averaging 5.5% . No kids (intangible liability), 1 Cocker Spaniel (intangible asset) No car payments but enough insurance to equal a car payment(bear in mind, we live in the city,) '92 truck, 96 VW; bought new, garage kept, still like new, thanks to our Dad owning an auto repair shop. $45k,(dividend paying equities)in retirement savings. We have begun adding at a furious pace knowing SS will be non-existent when we reach 55 yrs. $6k cash. (pathetic, I know, it was much greater in '99) We live great! Reside in a Historic Mansion in the city. Museum quality furnishings, Chef's kitchen, Ria cooks well. We dine out at will, travel when the mood strikes us, we grow our own veggies, sail regularly, on a friends boat, I pour our money into our home. We donate at least 10X more time and $$ to NP organizations than anyone I know our age. All in all we have a pretty good life. Our greatest goal is to invert the earnings income with the passive income within 5 years. To most of you this seems a quaint/cute lifestyle; Unenviable right? From our perspective we agree with you. It truly is an unenviable lifestyle, the reality is we are scared as hell (and I mean scared! Our LT debt/annual earnings load clocks in at about 1.8 to 1. It's an uncomfortable feeling, I loose sleep...regularly! SOROS, you publish a National debt ratio of 4.5 to 1! To me that is insane and incomprehensible! Something's got to give. I fear what goes first is our security (that's been proven, 9-11-01) Followed by a negative adjustment to our lifestyle (we're in the middle of that.) What's next? I am not Chicken Little, rather I am a Salmon who goes against the flow of Generally Accepted Accounting Principles, which appear to be irrational. Prove me wrong, Tim