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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (108878)	12/9/2014 9:34:39 PM
From: carranza2	1 Recommendation Recommended By Tommaso Read Replies (1) \| Respond to of 218647

I knew the simple 2014 (and 2013) truth: low interest rates = great stock markets. Jeez, it's not rocket science. It's a simple search for yield. Tie your moolah to an index fund and enjoy the ride. But make sure you get off in time because the losses can be harsh. The rest of the story as explained by the talking heads is male bovine manure. But I didn't get onboard, and not because of principle because, really, in this game principle has damn little to do with it. Instead, I didn't get on board because I thought that anything so flimsy can get its apple cart turned over at any time. Anything built on such a foundation presents problems I'd rather not face. So I stuck with gold. Not worried because even the rumor of an interest rate hike will tank the markets. Value always asserts itself, in the end. Net worth not what it was by a smidgen. So what. Not hurting, lifestyle the same. Income good. Prognosis: good. No, great. Simply not brave enough to jump on a train wreck to-be, though I'm cautious enough to jump off in time if I had. Rather not have to even lose sleep over it. Merry Christmas to all from the greatest city in the US.

To: TobagoJack who wrote (108878)	12/9/2014 10:58:05 PM
From: elmatador	Respond to of 218647

Let's pretend we are rich. How? We borrow money from the citizens. It can work. How we will pay them back? We tax them! Let me see if I got this straight: We borrow money from the citizens and then get money from them to pay them back. Yes. The result will be just debt ballooning. Does the debt matter? After all, world governments owe the money to their own citizens, not to the Martians. But the rising total is important for two reasons. First, when debt rises faster than economic output (as it has been doing in recent years), higher government debt implies more state interference in the economy and higher taxes in the future. Second, debt must be rolled over at regular intervals. This creates a recurring popularity test for individual governments, rather as reality TV show contestants face a public phone vote every week. Fail that vote, as various euro-zone governments have done, and the country (and its neighbours) can be plunged into crisis.