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 : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (132426)	3/28/2013 6:21:36 PM
From: tejek	2 Recommendations Read Replies (2) \| Respond to of 149317

I'm not looking for credibility. I'm looking for a good debate. If I wanted credibility, I'd go post on like-minded threads. I get a good debate here for the most part. Helps me stay sharp and challenge my assumptions. Recently, though a few posters have been getting very emotional, instead of calmly debating the merits of my arguments. That tells me that desperation is mounting. Going to a like minded thread and getting agreement is not the same as getting credibility. My main position nowadays is to alert people to the fact that propping up the stock market and the economy through endless deficit spending and money printing will most certainly have a catastrophic outcome. People watch the stock market make new highs everyday, and instead of realizing that the probability of a massive downdraft increases ratably as the stock market further disconnects from the underlying corporations profit expectations, they get euphoric and believe this will continue forever, or at least not end any time soon. This bull is already way past the mean cycle length for bull markets. Be wary. We know what your position is. Its been the same position for the past 5 years. No matter how many times its proven to be incorrect, your position doesn't waiver.......hence, your loss of credibility. To help prove my point, think about it this way. Do you feel wealthier as the stock market increases, even as the cost of food, fuel, and housing increases along with it? Maybe you feel wealthier, but the 99% are most certainly NOT wealthier as a result. And the costs are extreme in terms of the long term health of the economy. Increasing government deficits and debt and interest on that debt crowds out private sector spending, now and over the longer run...and the effect is compounding. That erodes future growth potential. We are quite literally ransacking the future to pay for today's economic sedatives. The problem is that we have not experienced the kind of inflation you are suggesting. The risks are also extreme. Money printing and financial repression through Bernanke's Zero Interest Rate Policy is acting on the inflation like a coiled spring. Only a little inflation is leaking out now, some 2% by the Fed's measure and as much as 5-8% for fuel, food, education, and health care costs, which combined make up the bulk of the 99%'s budget. However, it is a coiled spring. The Fed will not be able to slowly uncoil the spring, because they are looking at lagging indicators to determine if inflation is upon us. They are not ANTICIPATING inflation and acting to ward it off. By the time the Fed notices inflation, it will happen fast and ugly. They won't be able to dump the $3-4 or more trillion in bonds they hold now, nor will they be able to raise interest rates fast enough to stamp inflation out quickly enough. They are quite literally in a catch 22. Very few people understand this. I suspect, Bernanke himself fully understands this. It's probably why he is telling people that he'll step down in January 2014. He doesn't want to be around when the shit hits the fan. This is not the Weimar Republic. We are not experiencing significant inflation. Conditions are very dissimilar.......a fact you choose to ignore and why your credibility keeps taking hits.

To: RetiredNow who wrote (132426)	3/28/2013 11:35:22 PM
From: John Vosilla	Read Replies (1) \| Respond to of 149317

One winner. Those controlling the beaten up RE well below replacement cost. I studied the 1970's values of property tripled in much of America far outperforming the more expensive NYC metro area tied to the ills of WS. You are right that rising rents and costs of goods will hurt most Americans living paycheck to paycheck yet again. I can only hope at least policies more in line with helping the working class like back in the 70's are in place cause the starve the beast GOP running to the rescue at this late date is the last thing that will 'save' them. High interest rates are a killer for most all financial assets. Probably beaten up commodity based stocks of today like Alcoa and US Steel will be huge winners in the casino where most eventually lose..