Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (110053)	8/7/2011 6:56:50 PM
From: TideGlider	2 Recommendations Read Replies (1) \| Respond to of 224729

The reference was to "congress" meaning the House and Senate and to the Administration. So what is your point?

To: Kenneth E. Phillipps who wrote (110053)	8/7/2011 6:57:34 PM
From: tonto	4 Recommendations Respond to of 224729

Spending is the cause. We have been posting that for years. The failure of our politicians to govern is another. We knew that too. It is not about a circumstance nor party. Our government is broken and no one is trying to fix it. The parties fight and ignore recommendations of committees. If an idea is brought up, the opposing side attacks it immediately. Ideas are never given a chance. The results are what we now have...and the world doubts that the parties are willing to lead and govern.

To: Kenneth E. Phillipps who wrote (110053)	8/7/2011 7:29:48 PM
From: Sedohr Nod	6 Recommendations Respond to of 224729

After all your years of intense economic studies(to hear you tell it), you are willing to put your name & reputation into that excuse? Without major structural changes in our government, we will be choking on a 20 trillion dollar debt far too soon.

To: Kenneth E. Phillipps who wrote (110053)	8/7/2011 7:57:08 PM
From: Hope Praytochange	Respond to of 224729

How to brace your portfolio for another recession U.S. stocks, emerging markets, bonds, gold all need attitude adjustment odumba brings "changes: nickel and pennies" to your portfolio Stories You Might Like Email Print Comment 119 By Jonathan Burton, MarketWatch Reuters SAN FRANCISCO (MarketWatch) — The risk of another recession in the U.S. is growing and investors need to adjust their portfolio holdings accordingly. The downgrade of U.S. Treasury debt late Friday only underscores the need to examine the investments you own, why you own them, and the risk you’re taking. The types and amount of domestic and international stocks in your portfolio, and your opinion of emerging markets, cash and U.S. government bonds — even the reason for owning gold — all need to be reassessed in order for your investments to thrive in a challenging, slow- or no-growth environment. “At this point it’s only a question of whether [a recession] has already begun,” said David Rosenberg, chief economist and strategist at Toronto-based investment manager Gluskin Sheff. Investors clearly believe they already know the answer, given the punishing selloff in stocks worldwide over the past week. The waterfall-like plunge in equity markets on Thursday, the roller-coaster trading on Friday and the sharp rally in safe-haven Treasurys suggests that investors are locking into a defensive posture they may be reluctant to give up easily. And now that debt-ratings firm Standard & Poor’s has stripped the U.S. of its triple-A rating for the first time, dropping it a notch to AA+ out of concern over the U.S. political process, both stock and bond investors have yet another imperative to consider new ways to take advantage of less-forgiving market conditions. Read more: U.S. debt rating cut by S&P. “We are not likely done with this correction, as the factors that triggered this selloff have yet to be addressed, let alone successfully resolved,” said Sam Stovall, chief investment strategist at Standard & Poor’s Equity Research, in a note to clients on Friday. While another recession within 12 months is more likely — many observers now put the odds at about one-in-three — those who believe the economy will escape this mud-stained “soft patch” without a setback may ultimately be right. Read more: Investors to address debt downgrade, Fed moves. Regardless, it’s clear that the investing playbook is changing. Here’s what you need to know to stay ahead in the game:

To: Kenneth E. Phillipps who wrote (110053)	8/7/2011 8:10:43 PM
From: TimF	4 Recommendations Read Replies (1) \| Respond to of 224729

Even if you took anything the S&P says as being correct (and why would you want to assume that), it says nothing against the points raised in my post. Also if "cut, cap, and balance" had pased, the S&P would have almost certainly not issued a downgrade. Real solid, and already passed controls on spending, avoids a downgrade. The punting it off to a committee, while including no real upfront cuts (and only about twenty billion in "cuts" that are really just slowing the rate of growth of spending), isn't enough, so the government's credit rating gets a downgrade, and if things continue it might get more.

To: Kenneth E. Phillipps who wrote (110053)	8/7/2011 9:42:08 PM
From: lorne	4 Recommendations Read Replies (1) \| Respond to of 224729

America’s debt downgrade is a damning indictment of President Obama’s Big Government disaster By Nile Gardiner World Last updated: August 6th, 2011 blogs.telegraph.co.uk The decision by credit agency Standard and Poor’s to downgrade America’s AAA credit rating for the first time in 70 years is a massive blow to the credibility of the Obama administration, and a damning indictment of its handling of the economy. No doubt the White House will pathetically try to blame the Bush Administration, Republicans in Congress, and of course its favourite target, the Tea Party, for the move by S&P. But without a shadow of a doubt, responsibility for the country’s financial mess and staggering levels of debt lie with the current US president and his administration. They have been in charge of running the economy for over 30 months, during which time the United States has witnessed an unprecedented increase in government spending and borrowing. As the Congressional Budget Office revealed In January, the deficits generated under the Obama administration are the largest since the end of World War Two: The deficits of $1.4 trillion in 2009 and $1.3 trillion in 2010 are, when measured as a share of gross domestic product (GDP), the largest since 1945—representing 10.0 percent and 8.9 percent of the nation’s output, respectively… Just two years ago, debt held by the public was less than $6 trillion, or about 40 percent of GDP; at the end of fiscal year 2010, such debt was roughly $9 trillion, or 62 percent of GDP. The implications of this debt downgrade are extremely serious, not least with 46 percent of US Treasuries owned by foreigners. As The Wall Street Journal notes, the United States now has a score that ranks “below Liechtenstein and on par with Belgium and New Zealand”: the move by S&P could serve as a psychological haymaker for an American economic recovery that can’t find much traction, and could do more damage to investors’ increasing lack of faith in a political system that is struggling to reach consensus on even everyday policy items. It could lead to the prompt downgrades of numerous companies and states, driving up their costs for borrowing. Policy makers are also anxious about the hidden icebergs the move could suddenly reveal. …. Lessons from other countries, such as Canada and Australia, suggest it can take years for a country to win back its AAA rating. Since President Obama took office in January 2009, the United States has embarked on the most ambitious failed experiment in Washington meddling in US history. Huge increases in government spending, massive federal bailouts, growing regulations on businesses, thinly veiled protectionism, and the launch of a vastly expensive and deeply unpopular health care reform plan, have all combined to instill fear and uncertainty in the markets. Free enterprise has taken a backseat to continental European-style interventionism, as an intensely ideological left wing administration has sought to dramatically increase the role of the state in shaping the US economy. The end result has been a dramatic fall in economic freedom, sluggish growth, poor consumer confidence, high unemployment, a collapsing housing market, and an overall decline in US prosperity, with more than 45 million Americans now reliant on food stamps – that’s over one seventh of the entire country. These are increasingly dangerous times, with American leadership being challenged across the globe. Only an historic reduction in government spending combined with pro-growth measures including lower business tax rates to stimulate job creation and attract investment can turn the US economy around. Unfortunately, as Standard and Poor’s decision has shown, this is a presidency in extreme denial over America’s towering debts, leading a nation on a precipice while blindfolded to reality. The United States badly needs another Reagan-style revolution to stave off further economic disaster, preserve American leadership on the world stage, and secure the future of a superpower. Ultimately, greater liberty and freedom, not the deathly hand of Big Government, are needed to turn this great nation around.