sure..it's well known issue and another reason that keeps me away from munis..cause everything is f*d up now..this 'model' ..it's unsustainable..at least from my point of view..it make no sense,when private sector is making less(in some cases twice less) than their 'servants',teaching our kids at schools
I find myself largely in agreement with those that believe the entire "fix" will come to a very bad end and that anytime you screw with the natural order of markets to the extent we have it all turns to crap. That said, is there a route back to sanity or even quasi sanity that has a narrative that American voters will accept in large enough numbers to have a shot at happening? I, for one, do not believe that a populace that has come to accept this nonsense as normalcy will buy into biting the bullet and bearing the pain. I think they do believe in the tooth fairy.
Should the mandate of the fed to be to ensure interest rates are high enough to allow seniors to see a return on savings in a checking account? I always wonder when traders complain about the environment they are in. Aren't they supposed to play with the cards they are dealt?
"I think they do believe in the tooth fairy." then in a way you agree with obama and do not believe in american exceptionalism. you believe voters in america are likely to prove as stupid as voters in argentina who voted for juan peron and for the kirschners. the result was massive inflation and economic collapse.
A good trader should be able to make money in rotten macro scenarios, even end-of-the-world scenarios. But that doesn't mean he should be complacent about seeing friends, family, and the economy in general getting screwed. Unless you live on an island, you are a trader and a citizen simultaneously, with a stake in your country's future. Not to mention that extremely bad economic outcomes can lead to far worse political outcomes.
if they were "teaching our kids at school" america might be able to compete internationally. unfortunately american parents complain about schools in general but think their local schools are ok. of course it could be gigo or the more fundamental issue that america as well as europe is collapsing under a mountain of debt.
Was born in '62 dipstick! Yes I remember rates went sky high for a few months. Even bought real estate at 13.75% rates. Obviously The 21% were temporary. Did you manage lock in for 30 years and not tell anyone? The point is, interest from the bank is for the most part, is behind true inflation and after you get raped with taxes you really fall behind. If you don't understand this then you are the child here.
Keeping money in the bank is not preservation of capital. It's falling behind true inflation. Always has been and always will be. It is designed that way. You should be petrified to keep money idle in the banks. Another thing! Inflation has always been here and always will. Many ET posters continuously freak out at inflation like its friggin new. Guess what? Its not! Idle money falls behind real inflation. It's is the deninishing of capital.
That's a good thing... otherwise things don't work so well if cash now is worth more than investing for cash later.