Damn! How'd that get there? People were forced into the money market. The traditional way for saving when I was a child was the passbook account. I prided myself for every dollar that got stamped into my book. The move by the banks to reduce these rates made people look at certificates of deposits. The CDs gave the banks reassurance that the money would remain with them for the term of the deposit.
Then the money market fell and many people who were living off their retirement funds moved into mutual funds in order to maintain their ROI. The result is an inflated stock market. You *do* agree that the peak of 14,000 was quite inflated for the DOW? Terry On Sat, Sep 27, 2008 at 9:50 AM, Edmund Storms <[EMAIL PROTECTED]> wrote: > Yes, 4th line first word. > > Ed > On Sep 27, 2008, at 8:39 AM, Terry Blanton wrote: > >> Did you see the word 'forced' in my post? >> >> Terry >> >> On Sat, Sep 27, 2008 at 9:33 AM, Edmund Storms <[EMAIL PROTECTED]> >> wrote: >>> >>> 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 >>>>> >>>>> >>>> >>> >>> >> > >
