On Mar 23, 9:35=A0pm, starc...@[EMAIL PROTECTED]
wrote:
> On Mar 23, 11:40=A0am, kathy...@[EMAIL PROTECTED]
wrote:
>
> > Igor... the Fed bailing out Bear was wrong... should have let the
> > market deal with it, even if it would have made 1987 look like a cake
> > walk... of which still can happen... and probably will... fer which is
> > why myself, have sold off what wasn't my core holdings.
>
> The problems is that NOTHING is sound right now.
>
> And I do mean NOTHING.
>
> The entire US economy has been based on debt for at least 20 years, as
> a mechanism to hold some degree of order.
>
> I've heard a lot of people yelling "Why did the lenders give out these
> mortgages they knew would go bad?, or "Why did the irresponsible
> borrowers go so far over their head?"
>
> Answer: =A0It was the only way they could continue in the mythology of
> the "American Dream", as a means of retaining social order.
>
> A shockingly low percentage of people can afford to live in many
> American cities as things stand right now. =A0And even _fewer_ can
> actually afford to buy homes in these cities.
>
> Now, unless you are actually proposing basically crackhouse-level
> tenement halls for the poor to live in, you can see where this
> unravels pretty quickly: =A0Without any real benefit to their work, they
> quickly come to the conclusion that the work holds no real value for
> them either -- and, at that point, society begins to unravel. =A0You're
> seeing it in a lot of what people are doing...
>
> Why bail out Bear Stearns? =A0Societal order, if only for a few more
> weeks. =A0They go bad, then everything that they have "counterparty
> risk" to goes bad, and it's a run on the banks within weeks, if not
> days. =A0Same principle.
>
> Not that it's going to save anything -- you're now reading that 1/4 of
> the Gen-X adult children of this country are now having to beg their
> parents for money. =A0Money, in most cases, that the parents do not
> have.
>
> The fact is simple: =A0If you're born poor, you're going to stay poor
> and there's very little that can be done about it because we've gone
> into an economic (almost) caste system.
>
> >=A0Lookin back since the 1970's, it's been the financial sector that
has =
caused most
> > of the problems within the market, coming up with new ways to trade
> > the old & true... and it's been the old & true that has not only saved
> > the market, yet revived it each and every time... investing today with
> > anythin financial is like playing with fire, it's gonna burn ya...
> > best to get with what has strong roots in America... what's plain and
> > simple to understand... basic industries will get ya thru this...
> > we'll leave the light on fer ya...
>
> The problem this time, though,is that most of the "old and true" is no
> longer American.
>
> We don't have a manufacturing industry anymore -- our cars are **** --
> most of our stuff is now made cheaper (and better!) overseas...
>
> So what's going to save the market this time?
>
> Mike
Mike... my core holdings fer the last forty years have been within the
oil industry... integrated oil in particular and chemicals... basic
industries... nothin complicated here and still quite American... oil
pricing is high currently, yet i've found it to be a good investment
even as crude was falling down to as low as $10 a barrel... goodness,
i remember back then, when i'd say how much of my ****tfolio was in oil
and most others would laugh, whereas i'd just smile, all the way to
the bank... fer if y'all can understand how the cycle works, it can
get ya thru any market up or down... if willin to do a lil research,
y'all might find out that America still has a great deal of
manufacturing that is still American owned... consumer goods, either
durables or non-durables can also get ya thru this market turmoil...
and then there's the utilities to try... lots of other industry
sectors can also get ya thru this market turmoil... just stay away
from the financials and hedge type...
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