Come on, get real. No one is forced into the stock market this way.
Pass book accounts always pay less than other investments because they
are considered safer. Same with money market accounts. A trade off
always exists between safety and the risk of making more money. Lots
of different investment methods exist these days that allow a person
to match their risk to an expected reward. The difference between
these methods involves how much knowledge and attention is required. A
passbook account requires no knowledge, hence gives the least return.
Money can be made in the stock market even now, but this requires
knowledge and attention, which most people do not have or do not want
to get. In this life, you get what you pay for. In making money the
payment is in time and attention. Otherwise, you have only yourself to
blame.
Ed
On Sep 27, 2008, at 8:16 AM, Terry Blanton wrote:
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
