Jeff, You hit the nail with your head when you pointed out the loss of rates on passbook accounts. The loss of reasonable returns on these havens forced people into the money market and eventually into the stock market. The result is an inflated and volatile stock market and people living on the edge of panic.
I'm not sure the bailout will restore the waning faith of the masses. And, our entire financial system is founded on faith in fiat funds be it cash, stocks or bonds. Terry. On Fri, Sep 26, 2008 at 4:53 PM, Jeff Fink <[EMAIL PROTECTED]> wrote: > > > -----Original Message----- > From: Edmund Storms [mailto:[EMAIL PROTECTED] > Sent: Friday, September 26, 2008 4:25 PM > To: vortex-l@eskimo.com > Cc: Edmund Storms > Subject: Re: [Vo]:OFF TOPIC News of the bailout > > Actually, only the Supreme Court can answer this question and they > show no interest in doing so. The cause of the problem is obvious to > anyone who has looked at reality. Many mistakes were made, but each > has been identified and attempts will be made to apply a correction. > Of course, the corrections will be imperfect because of the required > compromises, but they will be put in place no matter who is elected. > The only issue of this electron is how will the next mistake be > handled? The next mistake is now being created by the structure of the > bailout. The next president will have runaway inflation and high > interest rates. Who do you think will handle this problem to your > benefit? > > Ed > > > Right now we have inflation running at approximately 10% annual rate and > savings accounts paying around 1 1/2% for a net loss of 8 1/2%. On top of > that we must pay income tax on the 1 1/2%. Part of Obama's plan to balance > the budget is to subject that 1 1/2% to social security payments as well! > It is part of his plan to redistribute the wealth. Inflation is a tax, and > it loots the savers. The stock market is too scary to mess with. I-bonds > are paying 0% interest right now, but even at that, they might be the best > investment out there. > > The majority of people endeavor to conduct their lives in such a manner so > as not to be a burden to others. They are the targets of this > redistribution. Some poor people seek jobs while others milk the system. > If the job creators are plundered by the government, where will the jobs > come from? When the haves are reduced to havenots, we will all be losers. > We cannot advance the economy by punishing the hard working successful. > > Jeff > >
