US Debt Ceiling in Perspective

[islandhouse]

Here is one way to look at the national debt:

Since 2000, the national debt has increased very similarly to the personal fortunes of the wealthiest 100,000 americans. Essentially, we borrowed a ton of money, gave it to the Kochs, the Waltons and the hedge fund guys and now they want the guys who got none of it to pay it back for them over the next 30 years.

Nice work if you can get it.

[longfisher]

I'm thinking a "Revolution" may be in the works? I for one would be willing to fight our own government to get back the America my ancestors fought to defend.

Our country may not be in as bad a shape as a 40 year old prostitute with a plethora of genital diseases, a bad back, strung out on crack, gettin beat by her pimp for losing a customer in her vast expanse of labial flacidity before paying. But we are heading into the alley where she lives!

Just wait until a half a million servicemen and servicewomen come home to a destroyed economy because the wealthy didn't pay their fair share and the Republicans allowed the country to slip into default defending them. Then, WCL, you just might get what you forecast.

It's been class warfare against us for decades. All we really needed to change it up right was military-grade pissed offeds. And, we're going to get them back pretty darned soon as the wealthy sucked all the money out of the economy that was needed to support them afield.

LF

[longfisher]

Stocks, bonds, Mutual Funds, Insurance, etc are not covered.

Just a little bit to add here, most states have what are called guarantee funds for insurance products, particularly life insurance and annuities. These funds are used to cover claims that arise from insurance companies that go belly up and can't pay their claims.

For instance, here in Texas you can get the guarantee fund to pay up to $300,000 for a life insurance policy claim that the company in receivership can't pay and I think up to $100,000 on an annuity. I always keep my individual policies / annuities under these amounts so that even if AIG gets eaten by the Easter Bunny my family won't take a hickey.

LF

[SeaMent]

the greedy thieves that we put in office, will take this little party right down to the wire. It makes for great drama, and it shows the american public how hard they are working for that paycheck we give them. I would guess they are sitting down their smoking cigars and drinking martinis laughing their asses off. They will agree on some closed door BS deal, then we will be informed of what we the taxpayers will be spending in increases after the votes are cast in 2012 !!

[longfisher]

"There's class warfare, all right," Warren Buffett told The New York Times two years before the 2008 crash, "but it's my class, the rich class, that's making war and we're winning."

Anyone still on the sidelines on the class warfare stuff?

LF

[Glenn W]

Keeping up with current events, yesterday...

● The dollar fell sharply against other currencies.

● Investors who make short-term loans to the government demanded a higher interest rate.

● Investors who wanted to buy insurance against a U.S. default on its debt had to pay vastly more.

Cash is King.

LF

LF, your sensationalism is like a cheap cable news show---- Interest rates were only up slightly yesterday and Treasury bond prices simply fell back to where they were last week. The dollar fell modestly, but nothing unusual.
If you are so sure of your investment savy, taking short positions will make you tons of money.

I prefer my Crow with a little vinegar----- GD, I'm bleeding to death after the last few days.

[seapower]

I've never had the extra money to put into the stock market, so I can't say how I would feel about what's going on right now. Don't know if I'd have the nerve for it in the first place. But I can tell you that my customers (as a whole) do have money in the market. They don't look very at ease these days, that reflects on the spending they aren't doing. It kinda feels like we're all living in a house of cards, just waiting for that breeze to blow and knock it all down. Frank

[longfisher]

...but there comes a time to protect ones self and that time is now. Cash is definitely King.

Or, haven't you been keeping up? If so, who's forecast, yours or mine, cited in your above post seems closer to recognizing what's actually happening.

GET OUT!
LF

[longfisher]

OK, Glenn W. With the credit rating downgrade isn't there going to be bloodshed in the bond market now?

Lots of unsophisticated investors fled the stock market and bought bonds in the last week. Now, they're going to get whacked too, right?

Cash, my friends...cash.

LF

[Glenn W]

OK, Glenn W. With the credit rating downgrade isn't there going to be bloodshed in the bond market now?

Lots of unsophisticated investors fled the stock market and bought bonds in the last week. Now, they're going to get whacked too, right?

Cash, my friends...cash.

LF

No doubt interest rates will go up and bond prices will go down in the foreseeable future

----- BUT-----

The great thing about bonds is that if one bought real bonds recently ( as opposed in bond index funds), and hang on to them, they will still earn a good return from the coupon interest and get all their money back at either maturity or when interest rates fall again in a few years.