To allude to an old joke, at this point we’re just haggling over the price.

Alex_SF on September 22, 2008 at 4:16 PM

Yeah but the surge of Palin shows that voters when offered a different vision can and will grap onto it. washington thinks the only way to get our votes is to give us stuff but there are other ways to secure our votes. Many still believe in small gov, less taxes, less programs, individual excellence, capitalism and hard work. IMO if we are given that kind of difference most Americans will choose the latter.
The problem is the deck is so stacked against people being able to make it in this world that the gov socialist alternative starts to look good. This is the direct result of gov policies over the last 20 years that drove people off the tax rolls onto the dole and allowed big money to corrupt the system at the same time.

batter on September 22, 2008 at 4:08 PM

crazy huh. but true. Can goods were a great investment over the last year.

Americans are NOT socialists

Sorry, but I’m with D0WNT0WN on this one. Americans have largely stipulated to some degree of socialism already (see: Social Security, Medicare, seniors’ prescription drug benefits, public education, all of which the overwhelming majority of Americans accept as legitimate), and the differences between the Rs and the Ds at this point is only over how much further to expand it.

To allude to an old joke, at this point we’re just haggling over the price.

JiangxiDad on September 22, 2008 at 4:09 PM

good question. I’m not a long term thinking guy when it comes to investments. But pension plans and other long term instruments would be happy to have a locked in secure return on their money. As well as sovergien wealth funds and national funds like China. a 4-5% return on your money over 30 years that is 100% secure is an attractive offer to some during this crazy time.

JiangxiDad on September 22, 2008 at 4:07 PM

those seeking safety would buy a 30 yr Tbill for what 2 or 3% . Im’ not even sure what 10 yr or 30 yr bonds are going at now. i’ve been to concentrated on the short term. But the gov needs to reissue 30yr, and make a new 40 and 50 yr bond for this mess. We can finance the debt out to 40 ,50 yrs

yeah but who is going to bail out the gov.

That’s my greatest concern at this point. We’ve fallen back on all the “fall backs” we have.

that bought can goods last year have a 20-30% return on their money

unseen on September 22, 2008 at 4:03 PM

Who would of thought Chef Boyardee would be an investor’s dream?!

yeah but who is going to bail out the gov. I and the rest of America is broke. Are we going to sell are country. No more than ever we need a person like Palin in a leadership postion to tell these idiots to go to H*ll.

unseen on September 22, 2008 at 3:58 PM

LOL. Don’t worry. I get all that. I’m ultra short. Only went into Treasuries in a big way last week, because I wanted out of my MM. I knew I’d get no return–even a slight negative. But I wanted safety.

I will have liquid stuff to put in if/when inflation pushes T bills and notes way back up.

As for the gov’t refinancing now, who would buy long?

unseen on September 22, 2008 at 3:24 PM

Totally agree. I should’ve been more specific on which debt I was referencing. The first situation you describe would also be ideal, for those with a crystal ball (take out a loan at 5% fixed and reinvest at a higher rate as inflation kicks in). Of course, you may not need a crystal ball anymore, just have the govt bail you out when your gamble doesn’t pay off.

JiangxiDad on September 22, 2008 at 3:28 PM

well considering they at a zero interest now. I would suggest to our great leaders to refinace our debt NOW. but as the interest rate goes up bonds go down in vaule. Bonds are the highest vaule now. They can only go down from zero. Buying a bond at 0% and selling at 16% will be a negative. You need to buy the bond at 16% and sell it when it gets to zero percent to make a profit. At 16% interest you are basically buying a bond at 84cents on the dollar and at maturity it pays you a dollar. that is why high interest bonds are considered high risk of default. The companies and gov has to pay high interest to cover the added risk of default. T-bill trading at near zero percent right now say that people are flocking to these bonds because of safety not for profit.

*eats*

Grue in the Attic on September 22, 2008 at 3:27 PM

don’t.

I’m sure T bill rates will go up too, might be worth checking them out as bailout financing kicks in.

“Thems that knows it earns it, thems that don’t pays it.”

batter on September 22, 2008 at 3:02 PM

Yep, could happen. Remember the days of 16% CD’s and Treasuries? Although that was wildly inflationary for housing as well. It’s so damn complicated and inter-related.

JiangxiDad on September 22, 2008 at 3:26 PM

Damn good book. Definately gets my two thumbs-up.

*eats*

upinak on September 22, 2008 at 2:57 PM

I have a well and generator. A 4 acre pond and can boil what I need.

unseen on September 22, 2008 at 3:00 PM

Either of you, or both, might like reading The Road, by Cormac McCarthy. It’s a brutal tale of when people will have to survive off the grid, but not for the feint-hearted.

“Thems that knows it earns it, thems that don’t pays it.”

batter on September 22, 2008 at 3:02 PM

It depends on what debt. If you have a fixed interest rate that is a good debt during inflationary times. non fixed debt like credit cards are bad since the banks can continue to increase your rates at a moment’s notice. If your debt is fixed at say 5% and inflation is running at 15% then you are in a sweet spot because you are paying the same amount of money ( which is now worth less) for the loan. during deflationary events like we are going through the reverse is true. You would want to pay off your fixed debts first and leave the non fixed debts alon since interest rates should fall.

Over the last year and a half we have had a deflationary eevent in homes and stocks. An inflationary event in energy and food.

This is a link to a friend’s blog, who was at the Florida Rally stood in the sun and waited. Didn’t mind was voting for Hillary Clinton but now a McCain/Palin supporter.

http://bellalu0.wordpress.com/2008/09/22/palin-power-under-hot-florida-sun/

this early voting crap, combined with ACORN and voter fraud, is another thing that concerns me in this whole election.

jp on September 22, 2008 at 2:26 PM

Which is why I am going to be an Election Judge. Everyone should call their local Republican HQ and see if a judge is needed in their precinct. It is IMPERATIVE that there be a Republican at EVERY precinct to monitor this election.

US Treasury has to print almost unlimited quantities of money to pay for the bailout
JiangxiDad on September 22, 2008 at 2:41 PM

Inflation is on it’s way. Better get out of debt quick and take advantage of some of the interest rates coming our way. I’m sure T bill rates will go up too, might be worth checking them out as bailout financing kicks in.

“Thems that knows it earns it, thems that don’t pays it.”

I have a well and generator. A 4 acre pond and can boil what I need.