Federal Reserve adds $70 BILLION in Liquidity to the Markets Today

[Carol]

I'm moving this down in the thread for those who missed the edit further up.

Okay, just spoke with my son in England and here is his take on the current financial situation.

Cash is good short term as this continues to unravel, safety is the key. Longer-term, go with exchange traded funds (ETF) with low expense rations to give to access the S&P 500. SPDRs are a specific type of ETF. Currently, it's difficult to predict the bottom... wait a little while. AIG is close to going bust as well; many companies will have losses regarding this bankruptcy. The next six months will be a rough ride, not until next spring would likely be a good time to re-invest. For some folks (in England) it would be best to just pay off their mortgage because interest is not tax deductible there. Not so in the US. One also has to look at how much liquidity one needs.

Putting money into any sort of retirement type plans is good. Even within some sort of IRA one can usually buy the SP 500 ETF, which is very liquid, relatively cheap to trade, low commissions, and gives exposure to a highly diversified index.

Long term - one wants to be in the equity market... think 20 years or more as this will also minimizes ones expense ratio and builds equity.

Gold is now in the $700 range and may be a good investment but is very difficult to predict short-term investment prices and value.

Cash is good. Particularly for the next 6 months as the equity market can still go down quite a bit more. Dollar has rallied against the Euro. The Euro is now predicted to go down. This is good for the dollar.

[Zarathustra]

Makani,

thank you for contacting your son and getting us another take on the situation.

[Archangel]

I believe Questiny is on the mark with her analysis, If you need absolute proof of what is going on just go down to your local bank, Troop, as I am sure you have good credit and you are an upstanding member of the community and ask them to refi your house or give you a 100% auto loan. Then take a look at the community you live in and notice all the late model trucks and cars sitting in peoples yards with For Sale signs on them. You could even drive across Country and perhaps notice the gradual siphoning off of National Gaurd equipment as it is being stripped from local units and sent to Iraq because we are out of front line equip. Maybe you could take your next car bill to your computer and print some money to pay it, that is what the Fed is doing, it doesn't take a genius to see that it is an unteneble situation. You might also want to ask why the Federal Government is running Military excercises in US cities, Indy and Denver come to mind. You may want to consider the fact that they generally don't practice things they don't intend on using. Maybe it is the shrinking volume of food I buy in the grocery store or the fact that I realize that the U.S. was not designed for 3 dollar a gallon gas, All of europe can fit in Texas so spare me the "Europeans are paying 7 a gallon stuff," it is insulting to anyone who has looked at a Globe I don't know I could be wrong, I mean the Government said we are doing fine and so did all the pretty people on TV, Sorry if this is too sarcastic, but I really hope you can see some of the things around you without someon having to write a dissertation on the fall of Rome....I mean America

[QUESTINY]

Originally Posted by Zarathustra

Q,

I don't hear many talk about the fact that the Fed no longer publishes the M3 statistic. Personally, I find that very disturbing, much like the writers of that article.

I am listening to some good stuff empathy sent to me. Real quick though, check out shadowstats.com to see what the M3 is doing.

[QUESTINY]

Originally Posted by Makani

I'm moving this down in the thread for those who missed the edit further up.

Okay, just spoke with my son in England and here is his take on the current financial situation.

Cash is good short term as this continues to unravel, safety is the key. Longer-term, go with exchange traded funds (ETF) with low expense rations to give to access the S&P 500. SPDRs are a specific type of ETF. Currently, it's difficult to predict the bottom... wait a little while. AIG is close to going bust as well; many companies will have losses regarding this bankruptcy. The next six months will be a rough ride, not until next spring would likely be a good time to re-invest. For some folks (in England) it would be best to just pay off their mortgage because interest is not tax deductible there. Not so in the US. One also has to look at how much liquidity one needs.

Putting money into any sort of retirement type plans is good. Even within some sort of IRA one can usually buy the SP 500 ETF, which is very liquid, relatively cheap to trade, low commissions, and gives exposure to a highly diversified index.

Long term - one wants to be in the equity market... think 20 years or more as this will also minimizes ones expense ratio and builds equity.

Gold is now in the $700 range and may be a good investment but is very difficult to predict short-term investment prices and value.

Cash is good. Particularly for the next 6 months as the equity market can still go down quite a bit more. Dollar has rallied against the Euro. The Euro is now predicted to go down. This is good for the dollar.

Thank you for posting this. This is wise advice.

[Oiran]

Troopgear, please stop bullying people... it serves no positive purpose. I've been following Questiny's posts and I don't share your sentiment that she only spreads "doom and gloom," nor do I agree that this most recent post isn't "new" information. I have to assume you didn't read it, but if you did, you clearly failed to understand the information within, because if you did, you wouldn't be holding so strong to your skewed stance.

"Banks are lying about their financial positions. They are hiding losses on and off balance sheets... more frightening is the fact that the FDIC has one-cent in reserves for every dollar it is responsible for. Worse yet, there are $4.1 trillion of uninsured deposits in banks. That is in addition to $8.6 trillion covered by only one-cent per dollar. If that doesn't frighten you, you are just plain dumb.

Then you look at Lehman's books and you find they are bankrupt and the South Korean government agrees with us. Incidentally no one in the US media carried the government of South Korea's comments. [*NOTE: Lehman just filed for Chapter 11 Bankruptcy TODAY, two days after this article was posted!]

...The financial system is falling apart, which is part of the disintegration process. All these other events are distractions to obfuscate the fact that the game is over. It is only a question of when does the bottom fall out. Follow our advice and get your excess capital out of banks, even brokerage houses are safer. Buy gold and silver coins and shares and Swiss franc government bonds. If you do not you may lose everything."

http://www.theinternationalforecaste...d_Moral_Hazard

Keep up the great work, Questiny!

[troopgear]

move on, we already had this talk.... it over...

[Northboy]

Originally Posted by troopgear

move on, we already had this talk.... it over...

I read this thread with interest and just had to jump in.

I don't agree with the goldbugs. A Gold standard would decrease liquidity in the system and as innovation would be effectively be choked, this could result in a regional dark age.

Getiing our innovations and inspirations commercialized to underpin livelihood will result in a new cash circulation paradigm and it would lift the boats.

Consider this, the Royal Bank of Canada, a reasonably good operator by international standards, has officers now sitting on local economic development boards and supports the localized ec dev. process.

Developing structures for empowerment of the public is where the real game is.

By the way, the real issue facing the United States is not the deconstruction of the financial system, some of which has to happen, but the potential loss of its fedralism in its current form....

[Carol]

"The credit crisis has also hit US insurer AIG, which is suffering from a declining share price and facing a possible downgrading of its credit rating.

AIG is being forced to extreme measures, including perhaps selling off subsidiaries to extricate itself from billions of dollars in losses, the Wall Street Journal reported in its online edition Sunday.

Citing an AIG insider, the respected US business journal said AIG was considering a teleconference with analysts on Monday, at which the process of restructuring would be outlined.

AIG, which has a worldwide presence in the insurance industry, has suffered a 45-per-cent drop in its share price over just a few weeks.

The company lost more than 18 billion dollars in the last three quarters due to enormous write-offs from the ongoing US credit crisis.

http://www.earthtimes.org/articles/s...eculation.html

Here is a George Green link as well. I'm not sure if folks have taken the time to listen to this yet: http://video.google.com/videoplay?do...67534341306261

[Ellusion]

All they are doing is throwing "money" at the problem knowing that all its doing is holding out the collapse for as long as possible. It's just time before the dollar is dead.

-Brandt

[Cyberbird]

Anyway.

***
-When you have eliminated the impossible, whatever remains, however improbable, must be the truth.
Arthur Conan Doyle

***


Is the United States Bankrupt ?
by Laurence J. Kotlikoff
Federal Reserve Bank of St-Louis
July/August 2006

***********
CONCLUSION

There are 77 million baby boomers now ranging from age 41 to age 59. All are hoping to collect tens of thousands of dollars in pension and healthcare
benefits from the next generation. These claimants aren’t going away. In three years, the oldest boomers will be eligible for early Social Security benefits. In six years, the boomer vanguard will start collecting Medicare. Our nation has done nothing to prepare for this onslaught of obligation. Instead, it has continued to focus on a completely meaningless fiscal metric—“the” federal deficit—censored and studiously ignored long-term fiscal analyses that are scientifically coherent, and dramatically expanded the benefit levels being explicitly or implicitly promised to the baby boomers. Countries can and do go bankrupt. The United States, with its $65.9 trillion fiscal gap, seems clearly headed down that path. The country needs to stop shooting itself in the foot. It needs to adopt generational accounting as its standard method of budgeting and fiscal analysis, and it needs to adopt fundamental tax, Social Security, and healthcare reforms that will redeem our children’s future.
****************

Source:
http://research.stlouisfed.org/publi.../Kotlikoff.pdf


By the way, Kotlikoff is a well-respected economist ( http://en.wikipedia.org/wiki/Laurence_J._Kotlikoff )

[timelord]

i think this thread is going off topic.... fast

[Mizar]

Just what I was silently hoping for, a cage match with Troop and Questiny.
For what it's worth, I will put my $ ( whatever they are worth) on Questiny.
IMO, really good R Viewers can also perform remote Mischief, ( not that I have ever done that, that would be wrong)
Mind your fingers on that forex keyboard Troop! Marquis de Q rules, no hitting below the belt and may the best person win.
M

[troopgear]

Why, Thank-you there Pirate eye..... I wish it was Halloween too...

[empathy]

The baby boomer thing, now that has relevance.
And if you step back even further. gosh I can't remember where I saw this..... Someone explained in detail, how the future holds fewer and fewer new borns, and more and more old people.... I will have to find it.

AHAH! HERE IT IS!!!

http://video.google.com/videoplay?do...g&q=demography

Please watch responsibly

[troopgear]

very delightful

[QUESTINY]

Originally Posted by empathy

The baby boomer thing, now that has relevance.
And if you step back even further. gosh I can't remember where I saw this..... Someone explained in detail, how the future holds fewer and fewer new borns, and more and more old people.... I will have to find it.

AHAH! HERE IT IS!!!

http://video.google.com/videoplay?do...g&q=demography

Please watch responsibly

Well that video was interesting! Did you know that Nebraska has the highest population over 85 years old in the US.

[empathy]

Originally Posted by QUESTINY

Well that video was interesting! Did you know that Nebraska has the highest population over 85 years old in the US.

Wow, a lot of old people in Nebraska! Do you think America's kids will grow up fast enough and have more kids in time to take care of our old people? Or should we just shoot all the baby boomers? (totally joking)

[troopgear]

1

[empathy]

Originally Posted by troopgear

I just got dumber!!

Thank you for participating. Your input is greatly appreciated.

[troopgear]

Thank-you kind Sir...

[dolphin]

troopgear (what a wonderful name you posted, tells a lot about you)....

Questiny has posted the most informative info. i'll read her posts more often bec. she cuts to the chase and provides pertinent info. obviously she's pushed your buttons, bec. you can't handle hearing the truth...which is why most of us are here on this forum. if you want to be babysat then don't read her posts.

[troopgear]

What insight would that be.....
Please....

[empathy]

Questiny, please retitle this thread to:

"Everything about TroopGear 24/7"

Because he really needs the attention.

[troopgear]

Let me get the live feed up and running first..