Friday, July 29, 2011

07/30/11 Increase Taxes, Cut Spending, and Do Both in a Big Way

That's the only way out.

What we have is a generation of Boomers that expect some serious entitlements (Social Security and Medicare) after having irresponsibly spent a lifetime of (inflated) wages on fleeting pleasures. Sure, not all of us- but those who don't/didn't are generally in good shape financially.

There's no magic to getting our house in order. But no politician has the balls to tell his/her soft, overpaid and underworked constituency (I include myself in that group) what they need to hear:

(a) We may need to give up the mortgage interest deduction.
(b) We may need to work longer, and/or give up a percentage of our holy Social Security benefits.
(c) We may need to ration healthcare, and/or give up a percentage of our holy Medicare benefits.

So the ---- what? If it's necessary, let's do it.

28 comments:

  1. And none of this 'you first' stuff ;)

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  2. 2nd, it appears you're not alone. However, are we talking about forgiving theft or incompetence? The concern I have is that philosophy doesn't appear to punish those responsible, but instead forces the innocent to pay the consequences. Gimme back my SS contributions and perhaps I could agree:

    http://www.nytimes.com/interactive/2011/07/29/us/politics/20110729-debt-matrix.html?smid=tw-nytimes

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  3. RAS- Yeah, saw the numbers this am and watched it trade for a while. This is your area, let us know what you think.

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  4. Now for a few positive comments re retirement preparedness:

    http://www.marketwatch.com/story/the-retirement-savings-crisis-is-overblown-2011-07-28?pagenumber=1

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  5. btw, here are my 'predictions' for the week of August 1:

    (a) Now that we've priced in a default + thrown J6P off the train and/or deterred him from climbing aboard, we rally. My 'target' is just shy of YTD highs, except for the SMH, which will blow past YTD highs.

    (b) As a bonus, we will unexpectedly hear good news re employment.

    (c) Boehner will be smiling, having narrowly averted being summoned by the Cleaner.

    (d) I'll be ordering rib-eye + lobster with a double martini next weekend.

    (e) The debt ceiling will be raised, and we'll be back to the same old same old. This is item (e) for the simple reason no one will give a shit by this time next week.

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  6. 'I'll be ordering rib-eye + lobster with a double martini next weekend.'

    Why are you doing this too me?...

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  7. Well, the theme for the day is 'Twisting the Knife.'

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  8. MarketWatch headline: 'Washington grumbles, Wall Street stumbles’

    http://blogs.marketwatch.com/thetell/2011/07/29/washington-grumbles-wall-street-stumbles/

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  9. I say Washington bumbles, Wall Street rumbles.

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  10. It's been several weeks since I last asked- where's vb?

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  11. I was thinking about VB today also. I'll shoot her an email.

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  12. Dang 2nd that is some harsh austerity you are suggesting. I say lets keep on spending like crazy. More entitlements please. Less taxes. Lets saddle our kids with mountains of debt. Why should they have it easy? In my case maybe it will motivate my lazy bastards to aspire to do something more than text and play video games. Really what is the plan anyway. Solve all the world problems. Have no debt or war. Provide our children a coke commercial like world? You know what will happen to these spoiled brats. They will become savage drug fiends who are bored with life because there is nothing left to conquer. I say lets leave them a large task to solve, so they can get fulfillment by being innovative, creative and industrious. They will have a fulfilling life of accomplishment by straighten out all the problems their parents caused. They will thank us later.

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  13. RB for President!!! I'll submit the proper documents tomorrow. Right now I'm busy making margaritas. For a second there I thought it was an end of world party!!

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  14. Second the motion, Mark. And RB, remember I am the midwest VP, rust belt and all that corn & beans. Don't throw us under the bus as BO and them others are doin.

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  15. Well I can see the point of passing debt onto the kids, perhaps they'll be smart enough to run the country like a corporation by diluting shareholders in order to pay off the debt. Especially since the real rate on the debt is currently negative, why should we pay it off? We should be adding more.

    BTW, Hot dogs are the leading cause of choking hazards for kids, I guess second is gumballs or certain kinds of candy. None of these carries a warning label, yet superballs must.

    South Korea and many other countries have superior internet service to what we have in the US, this is becoming a major economic factor. The US is 13th or something like that.

    Yep, our government is the epitome of efficiency, can't understand why should I want to give them a larger piece?

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  16. President RB, my grand kids need to be horse whipped now. All they been doing all summer is playing on the Wii and swimming at the WY. They should be doing more productive things, like washing my car.

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  17. GG - RSI(7) is well under 30 now...

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  18. The headline I DON'T want to see next week:

    'Washington fumbles, Wall Street crumbles'

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  19. The headline you liable to see and should be prepared for:

    "Washington fumbles, Wall Street __________.

    Somebody's gonna get screwed next week, who's turn is it?

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  20. Great post 2nd...my gameplan is one day bounce to 1310..stall for a day or two then drop to 1,240 then bounce to 1310 then drop to 1210 then new highs before year end. That would be diabolical

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  21. CP- You want us to fill in the blank with 'TUMBLES?' Say it ain't so...

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  22. I like your scenario, tof. As Vad used to say, 'It's evilish.'

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  23. http://www.marketwatch.com/story/tropical-storm-don-misses-texas-refineries-2011-07-30?link=MW_home_latest_news

    Brings back fond memories of the days we used to game NG prices during 'cane season.

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  24. 2nd - That blank might be filled with "RUMBLES", the RSI(7) is now under 30 but we still haven't hit the double top 1266 target and I wouldn't call the June low an inverse H&S pattern anymore based on the chart.

    Some point out the April 30 high as the head on an H&S pattern, in which case that would seem to also point to the 200SMA as being close to the neckline and that pattern would yield about 1170 should we break below the neckline.

    In summary, could be we're just retesting the 200SMA at which point bulls take control? I think it's possible buyers are stepping up to the ticket window here. A move beyond 1266 might be indicative of 1170?

    So what's my plan? Still long SVM and waiting to add once the $9.22 gap up is filled.

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  25. UNG - Speaking of NG, UNG is approaching it's low again.

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  26. WFR is as volatile as nitroglycerin. It's been below 10 many years and close to a penny stock a few times, then up to 90 in late 2007. I have no clue why this is so.

    http://finance.yahoo.com/echarts?s=wfr#chart2:symbol=wfr;range=my;indicator=volume;charttype=candlestick;crosshair=off;ohlcvalues=0;logscale=off;source=undefined

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  27. I misspoke earlier in the week when I stated SS E-checks would hit on the 1st. They come on Wednesdays and are staggered throughout the month by alphabet or some such thing. So Wed is a big day since the Treasury will supposedly not have the cash for the first round.

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