Sideways to down?
http://www.hussmanfunds.com/wmc/wmc090511.htmHere's the situation. A variety of investors provided capital to financial companies, with which they made irresponsible loans and took excessive risks. These activities resulted in real losses, which have largely wiped out the shareholder equity of the companies. But behind that shareholder equity is bondholder money, and so much of it that neither depositors of the institution nor the public ever need to take a penny of losses. Citigroup, for example, has $2 trillion in assets, but also has $600 billion owed to its own bondholders. From an ethical perspective, the lenders who took the risk to finance the activities of these companies are the ones that should directly bear the cost of the losses.
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The bailout is not something “neutral” that cancels itself out, but instead amounts to a transfer of trillions of dollars of purchasing power directly and indirectly from those who didn't finance reckless mortgage loans to those who did. Farewell to the projects, innovation, research, investment, and growth that might have been financed by the savings and retained earnings of good stewards of capital. Those funds are being diverted to the careless stewards who now stand to be made whole.
In short, these bailouts are emphatically not neutral to society as a whole, because they damage incentives and divert productive resources into hands that have proven themselves to be reckless and incapable. To believe that the bailouts are just money we owe to ourselves is to overlook serious ethical implications, as well as distributional and incentive effects.
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Looking at the last 100 days or so...you see that the US is OWNED by the military/defense sector...the wall street/finance sector...and soon we will see....the big pharma/health care sector.
It will be interesting to see IF there is even any attempt at serious voting reform...so that we are representing by people who DON'T ride around in limos. I'd bet...NOT.
Assignment: find and name a sector or area of the US economy that isn't being "regulated" by the same people being "regulated" Revolving door syndrome.
Please....do not feel exploited...it is all just your imagination. Your programming WILL resume. Just relax...all will be well. We need just a teeny bit more nectar.