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D. F. Facti

This is particularly ironic, I guess, because as the baby boom cohort gets set to retire, their invetment portfolios should reflect decreased market risk, traditionally a move from about a 60-40 equity to fixed income ratio, to the reverse of that or even more conservative. Tomorrow is here or will be soon. The assets reserved for retirement are going to need to be liquidated.

Where the hell does anyone invest conservatively? Everything is a sham, even (especially) government bonds. Even AT&T is a crock.

What a mess. It seems impossible that the world financial wizards will be able to prop this thing up indefinitely.

Elaine Meinel Supkis

The 'tranches' infected all funds and of course, countries go bankrupt so US bonds can be very yukky if the Chinese dump $600 billion.


Hi exactly right the central bankers are holding interest rates too low. To keep it so low, they must pump in huge amounts of money. But by pumping in money that in itself creates inflation. And soon investors want a higher rate of return to compensate for the higher inflation. So then the bankers must either raise rates even more, or pump exponentially more money into the system.

My prediction right now is the inflation numbers are going to show a 'surprise' rise in inflation. The powers that be will make inflation look higher, to justify the fed then doing a surprise raise in interest rates. It appears how the credit markets blew up on aug 9, investors want 50-60 bps more.

Elaine Meinel Supkis

Correct. We are in a trap. A classic trap, easy to avoid but to avoid it, you have to avoid easy money. How simle can it all be, anyway?

We should have cut back on our oil consumption when it began to rise. We didn't. Fatal mistake.


Oil was about 1/3rd of the deficit this month.. the overall numbers for the deficit actually looked relatively good.

One thing with oil is to do what most countries do and have a higher oil tax. Can even make it 'revenue nuetral.' I would also then help out the big car companies some, since they designed their products assuming gas taxes would stay the same.

The other thing is it surprising how much of the use of oil in America is people using it for heating.

Elaine Meinel Supkis

You are totally correct. But the politics of increasing taxe are obvious.

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