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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (13740)	2/23/2013 2:58:18 PM
From: Yorikke	7 Recommendations Read Replies (2) \| Respond to of 33421

Seven to eight percent is part of the Big Lie. Below that somebody starts to get screwed out of their retirement savings. (can you say 'People below 40?'.) The fact is, in an environment where the government has brought rates down to near zero it will take some very risky behavior to gain the 7-8 percent return required. So many people are putting their savings in the hands of managers who are no different than the guys who pay for the club house box seats at Santa Anita and dump other people's money on horses that are likely to finish out of the money. Michael Lewis touches on these fellows in his books. His descriptions of pompous self-importance bought with other people's money is quite amusing, if, of course, you have not been forced to give your own savings to one of them. Remember, these retirement funds still hold a great amount of the derivative trash that the banks unloaded during the the 'it never goes down!' days. They value that, as does everyone else, at book, (Their sweet investments you know. Wink wink, nudge, nudge, say more, say more! If you get my meaning, wink wink....) The Fed bought great loads of this trash from the banks, but the funds were given only the 'accounting fraud' bones to hide their 'impending' loses. If the market goes south, the rate of return crumbles, and then the facade falls away and the rot is exposed. Tens of millions of people find they are more involved in the bank's fraud than they ever thought possible. So Bennie simply stands there speaking Greek, while the Fed manufactures calmer seas. (Print, print, buy, buy, lie some more, lie some more. Alls well, alls well, wink, wink....)

To: ggersh who wrote (13740)	2/25/2013 5:25:50 PM
From: Pogeu Mahone	1 Recommendation Read Replies (1) \| Respond to of 33421

"all of the pension systems to achieve the 7.5% to 8% long term returns that they have to pay for their structural costs over the long term..." Because the suckers err victims err participants in the pension system have been conditioned to believe they are entitled to those returns. New world order, can you adjust to a zero rate environment? "On July 18, 2012, the German government sold US$5.13 billion worth of two-year bonds at an average yield of -0.06%. Please note the negative symbol in front of that yield number. What this means is that the German government was able to borrow money for less than nothing. When those specific bonds expire in two years’ time, the German government will pay back the original $5.13 billion minus 0.06%. Expressed another way, investors knowingly and willingly bid the German government $5.13 billion in exchange for bonds that will pay no interest and are guaranteed to lose them money on expiration.1 Welcome to the new status quo." https://www.youtube.com/watch?v=_OafDZdsx0o