A great review of the U.S economy from a long-term investor
By Daniel at 5 July, 2009, 12:13 pm
I am no expert at trading. I invest for the long term but this past year I, just as those of you left out there who are truthful to yourselves know the time has come for the good of the many to outweigh the outright greed of the few.
We can not continue on with a situation where the only real jump we see in our portfolios are due more to the firing of thousands of employees (who have no new job to go to) than the uptick of whatever business it is that is firing these people out of desperation. Many of you may not know this or even care but the jump we see in our portfolios on average is gone within a week and we are right back to square one.
Several of my fellow parishioners banned together to get our annual bar-b-que going this fourth of July because many of our fellow parishioners SIMPLY CAN NOT AFFORD TO CONTRIBUTE.
You see, the way it was suppose to go was companies were suppose to make things. Then people were suppose to buy things. When people bought things that was the green light to hire people to make more things so when people got paid on Friday they would go out and buy more things because they ALL knew (or at least felt) that there was going to be a job for them to go to on Monday morning to start the process all over again.
Last year no one but an idoit could not figure out greed was the order of the day when oil hit $150 a barrel. No ships were being blown up in the Persian Gulf. No two standing armies were blowing each others tanks up on the battlefield nor shooting each others planes out of the sky either. So what gives with oil hitting $150 a barrel????
I’ll tell you what gave in. Our very ignorance that we could no longer afford the lifestyle that credit offered us is what gave. Now people really began to see that with a $20 per hour job (and that is what the middle class earned on average) they simply could not afford (nor had any business even trying) a $400k house. But that is what happened until the oil shock brought them back to reality. Greed is never good when it is exposed for what is was all along.
Now look what has happened. No credit, no jobs, no confidence in the future. All due to the oil shock of ‘08 that finally brought us back to reality. We have oil to thank for this mess just as much as we have the greedy and ignorant on wall street who really did think “judgment” day was not going to come.
Have no doubt more schemes are being hatched by young brokers who too want their “share of the pie” at all cost. I would/will not be shocked if by Christmas several other Madoffs are brought in from the cold for the entire world to see. Though they will wait till after Christmas to lessen the impact on Christmas sale, which are going to be dismal at best, rest assured.
A long-term investor
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