Sunday, April 01, 2012

>>Watching it all, I struggle even more with the notion of “financial repression.” “Saver repression” and “bear suppression” make sense to me. Returns for the rationally risk averse investor are being depressed, no doubt about that. Yet it is an altogether different story for the financial speculator: Instead of repression, it’s Financial Liberation. Never has the investment landscape been so stacked against the saver and investor in favor of the speculator community.<<

REG gas now $4 or higher in most parts of the country, and we have not started the rise we usually get into the summer driving season, it seems destined that gas prices will go even higher.

Savers are repressed, even penalized as 0% FED funds rate continues unabated, this policy has managed to inflate RISK ASSETS, stocks to their best quarter since?....1998!!!

SO, did we avert a financial armagedon meltdown in 2009? or did we kick that can down the road, is it possible with even MORE dire circumstances and results?

A $500,000 nest egg of savings in a Bond Money Market, one of the safest places to store money, can only yield about $50 in interest.....$50 for half a million in hard earned no one asking how the FED policies are killing those at retirement age and those who do not wish to roll the dice with risk assets? WHERE is the balance, where is the incentive to SAVE, increase bank deposits?

And the still near 2% 10 year Bond stays low with continue Federal Reserve intervention now 3 years old.

WHERE in any handbook does it avoid the PIPER if you continue to inflate a credit bubble that has burst with one even more unmanagable in scope? Bernanke, from all accounts I erad, will be seen in history's rear view mirror as one who handled the situation like a skilled surgeon. And will be lauded as one of the best FED Chairman we have ever had....he was just what we needed.

But at 3% 15 yr and 4% 30 year...the housing market has yet to heal, prices yr/yr continue to decline and existing homes for sale continue to sit on the market, hard to sell.

I keep hearing where Consumer Confidence is rising, but it sits so far below normal and any other recovery, no one talking about that. WHAT could stop perspective home buyers from buying a home right now? Fear? of what? keeping or losing a job? don't we have one helluva recovery going on now?

Hiring more people at this point may be OK for AAPL, but the increasing employee costs are starting to take a bite out of profits....spending on durable goods is still subdued compared to any previous recovery.

Amazon is putting the hurt to traditional retailers like Best Buy, who will close a bunch of stores, and needs to rethink how they go to market, Amazon is putting some hurt to traditional powerhouses like Walmart. Isn't it great as a Retailer, you rent the space, fill it with products and the wonderful COnsumer can come, see, waste your time, SCAN....and then buy from online retailers who have NO expenses for store fronts from where Consumers can touch and feel products to decide if they want?

WHY NOT go and sit on chairs in a store, then go anf find them cheaper online, thanks for nothing. Gd bless the internet.

So we will be left with a society that makes nothing, supported by Gov't payouts......making nothing, but buying everything?

WHO doesn't think that 0% interest rates, and the current policies won't lead to an even more catostrophic collapse?

Haven't we already witnessed since 2000 what such intervention will lead us too? And now even more HISTORIC FED and GOVT games, to put off that day of reckoning, the paying to the piper what he is owed.....already the GAP between the HAVE'S and the NOT'S is ever widening.....I hope in the end, social unrest is not what we we saw in Europe...


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