[Grand Goombah Graeld]

Yeah, but the 6 figure earners are closer to being representative of the general population than the 9 figure earners. The 9 figure guys have been so far removed for too long.

[Cold Iron]

This is true. I'd guess that the number of new 6 figure earners in the US is dropping faster than the new billionaires.

[Grand Goombah Graeld]

Couldn't tell ya. Too busy trying to pull myself up by the bootstraps. Probably be a while before I respond to your last post in the other thread also. Lot I wanta say there, but just don't feel up to it right now. Kinda sick & reading the Books of the South (Glenn Cook).

[Nicodimas]

So QE ended today and they spent/lost 1.25 trillion dollars on the market. In this time the market went from 6.6k-->10k. The bad part is the dollar went from 100 --> 75 or lost about 25% of its value. Some might label that inflation, but plenty of time to recover it... Something for you all to think about in the immediate future...

Sadly QE 2.0 may be coming:

Quote

In their discussion of monetary policy for the period ahead, Committee members agreed that no significant changes to its policy target rate or large-scale asset purchase programs were warranted at this meeting. Although the economic outlook had improved further in recent weeks and the risks to the forecast had become more balanced, the level of economic activity was likely to be quite weak and resource utilization low. With substantial resource slack likely to persist and longer-term inflation expectations stable, the Committee anticipated that inflation would remain subdued for some time. Under these circumstances, the Committee judged that the costs of growth turning out to be weaker than anticipated could be relatively high. Accordingly, the Committee agreed that it was appropriate to maintain its target range for the federal funds rate at 0 to 1/4 percent and to reiterate its view that economic conditions were likely to warrant an exceptionally low level of the federal funds rate for an extended period. With respect to the large-scale asset purchase programs, some members thought that an increase in the maximum amount of the Committee's purchases of agency MBS could help to reduce economic slack more quickly than in the baseline outlook. Another member believed that the recent improvement in the economic outlook could warrant a reduction in the Committee's maximum purchases. However, all members were able to support an indication by the Committee of its intention at this time to purchase the full $1.25 trillion of agency MBS that it had previously established as the maximum for this program. With respect to agency debt, the Committee agreed to reiterate its intention to purchase up to $200 billion of these securities. To promote a smooth transition in markets as these programs are concluded, members decided to gradually slow the pace of both its agency MBS and agency debt purchases and to extend their completion through the end of the first quarter of 2010. The Committee agreed that it would continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. Members discussed the importance of maintaining flexibility to expand the asset purchase programs should the economic outlook deteriorate or to scale back the programs should economic and financial conditions improve more than anticipated.

http://www.zerohedge...aves-option-qe2




Fornuately nothing has happened yet...

[Grand Goombah Graeld]

Could you break all that down into laymans terms?

[Nicodimas]

Wow I am really suprised I missed this. Really interesting stuff and I always like this guy because he always seems to speak his mind. Maybe because he just doesn't care anymore. We live in some interesting times. Oh yeah if we do QE 2.0 we could easily see oil shoot up and destroy its old highs last year. To me this is the biggest danger of a QE 2.0..History is really going to judge what happens and which way it all goes down.

Quote

By Jeff Poor
Business & Media Institute
10/1/2009 11:20:09 AM
Scary times ahead? Perhaps, if you take credence in what Rep. Ron Paul, R-Texas, says.

Paul, who had a strong grassroots following during the 2008 presidential election, explained on Glenn Beck’s Sept. 30 radio program that perilous times lie ahead due to the Federal Reserve’s loose monetary policy. Host Glenn Beck asked how an Israeli strike against Iran might trigger problems with the American financial system.

“What happens when Israel strikes Iran or Iran has the earth rays and we know that they now have a nuclear weapon, what happens to our financial system at that point?” Beck asked.

The libertarian Paul maintained China would become the world’s financial heavyweight and they were already making preparations to be the world’s top dog.

“I think the Chinese take over,” Paul said. “If there’s a real panic and oil shoots up to a couple of hundred bucks, the Chinese will dump their dollars. Chinese are maneuvering for this. The more we threaten Iran, the stronger the Chinese influence gets because they're using the dollars that they have earned from us and saved, they have a trillion, and they are starting to buy up assets in Iran and build plants and get involved in their energy. So the whole thing is backfiring on us. We’re getting ready to put tougher sanctions on the Iranians and that will make things that much worse. It won't help the dissidents in Iran. It's going to cost us a lot of money, and there will be a bombing and that will be a big, big event. I think it will crash the dollar is what I think it would do.”

And what does the country look like after the dollar crashes? Not good the Texas congressman said.

“We think it was bad with the financial crisis,” Paul said. “When you have a dollar crisis, the whole thing quits functioning. The checks bounce and literally the federal government's checks bounce if you have – if inflation goes up.”

But the situation deteriorates even more Paul – with states leaving the union.

“I think we’re going to have a de facto 10th Amendment, secession,” Paul said “People are just going to ignore the federal government because they won’t – and there’s, you know, a total loss of credibility.”

Beck alluded to media charges and warnings from others that there would be violence and contended the right is being set up to take the fall for it.

“Congressman Paul, the media and even [Rep.] Patrick Kennedy said this, we heard this from two people, Muammar Gaddafi and I believe the other one was Ahmadinejad that both spoke last week and they – we’re hearing it all the time that there’s going to be violence here in America, that people are targeting,” Beck said. “Basically everyone is going to blame this on the right, any kind of violence.”

There would be violence, but not before a dollar crisis happens as some Democratic politicians and media personalities have warned, but afterward Paul said.

“I think that there will be violence,” he explained. “I hope we don’t have to go through, you know, a very violent period of time, but that's what happens too often when the government runs out of money and runs out of wealth, the people argue over, you know, a shrinking pie and, of course, the people who have to produce are sick and tired of producing.”

Must read-->
http://nymag.com/gui...ney/2009/59457/

This post has been edited by Nicodimas: 15 October 2009 - 06:25 AM

[Morgoth]

no sane human being put much credence to what Ron Paul says anyways. The man believes, among other things, that Canada and Mexico conspires to create a single North American entity out of USA, Mexico and Canada

[Nicodimas]

Yea I found it to be interesting for sure that he could say that aloud. I think the general sentimient is that selling two trillion dollars of debt to china was probably a bad idea in thr long run.

1 Trillion Dollars weighs 220 million tons apparently. Nope haven't weighed it..

[Grand Goombah Graeld]

Have to agree with that. Bad idea. Don't even need cliff's notes to figure it out.

BTW, did anyone here read any of that stimulus bill that got passed earlier this year? Just curious. Guess I could search, there was probably a thread, eh?

[Shinrei]

Morgoth, on 15 October 2009 - 06:14 AM, said:

no sane human being put much credence to what Ron Paul says anyways. The man believes, among other things, that Canada and Mexico conspires to create a single North American entity out of USA, Mexico and Canada

He's spot on about the federal reserve though. The fallacy that one thought/belief a man has negates all his others....

Is this true though? I've never heard this about Ron Paul.


Truth is, we can't predict diddly when it comes to any of this. If we could, we'd not be in a recession. Our inability to predict is only outmatched by our arrogant belief that we can.

[Morgoth]

My grandfather always held that you can tell whether an economics expert on television is worth giving credence to by noting how certain he is in his predictions. The more certain the less of a point there is listening to what they're saying.

Good advice all told, he's made quite a bit of money of his pension by investing following that principle.

[Grand Goombah Graeld]

That makes a lot of sense. People who are so certain make me nervous.

[Nicodimas]

http://twitter.com/B...uses/4932186542

Wow if true...This is unpleasant news to say the least. Saddam did this and a couple months of propagnda later we invaded.

[Cold Iron]

People who are certain have an agenda or are following/being manipulated by someone with an agenda.

The US cannot afford to invade Iran.

[Terez]

I am not a prepper.

Good article:

http://www.rollingst...s_naked_swindle

[RodeoRanch]

Morgoth, on 15 October 2009 - 06:14 AM, said:

that Canada and Mexico conspires to create a single North American entity out of USA, Mexico and Canada

I must have missed the town meeting on that one.

[Shinrei]

Try selling the European Union to someone in 1954.

World changes, especially with world economies so entertwined.

[Terez]

RodeoRanch, on 19 October 2009 - 03:13 AM, said:

Morgoth, on 15 October 2009 - 06:14 AM, said:

that Canada and Mexico conspires to create a single North American entity out of USA, Mexico and Canada

I must have missed the town meeting on that one.

We've been planning to annex you guys into the great United States of North America for some time now. We're not even secretive about it, you know...

Annexing Mexico is more about border security than anything else - their southern border is much easier to guard than ours is currently. Should take care of the illegal immigrant problem for good!

[Urb]

Terez, on 19 October 2009 - 01:01 AM, said:

Good article:

http://www.rollingst...s_naked_swindle

I was attacked by a computer virus (or maybe it was just pop-up spam?) when I reached page 7. Good thing I'm running Linux. The first 6 pages were interesting though. I had no idea inside trading was so "legit". If I ever become an entrepreneur, I'm never going to put my company out on the stock marked.

[Terez]

haha, yeah I'm on OSX, so I fear no virus. Well, I know it's possible, but highly unlikely...

I knew inside trading was legit - all my uncles are big into 'investing' (seems a bit of a misnomer, especially in this context) - but I had no idea about naked short selling, and how much it apparently had to do with the collapse.