So we are back where we were prior to the dividend cut. We're looking at a current yield of around 21%. I can't imagine that the fund will continue the current dividend. I believe they will cut the dividend to .05 cents a month for around a 15% yield in October. I would be interested in comments about this issue. Anyone believe they can sustain the current dividend? How?
Unfortunately, many accurate (not all but many) examples of what is wrong with this country. While I do not like the answer it is time we as a nation realize we can not continue the unsustainable standard of living we pursue. We have to find satisfaction in something other than consumption. To fix our problem everyone must sacrifice. I do believe teachers and government employees are overpaid as are many in the private sector.
This will all get fixed. The real question is whether it gets fixed without having to be 100% broken first. But rest assured some day it will get fixed. If we don't wake up the fix is going to be ugly.
All very good solid points. The Mayor of Phoenix raised the sales tax to keep some Police and Firemen jobs. One editorial said, "These are good paying solid jobs with pension and health care benefits---why should people struggling with low wage jobs pay more money out of their pocket to preserve these well paying jobs that have enviable benefits?"
And lets get to teachers. I admit they have been given a tough job with the soup mix of students they are given---but the illiteracy rate in America in 1960 was 5%---Today it is 30%. My wife and I took a US Coast Guard course on Power Boating. They told us it was at the 12th grade level---but the government was going to lower it to an 8th grade level, complete with more cartoon explanations. The dumbing down of America continues---with the help of Uncle Sam. Could it be that our own government like to keep the unwashed masses uninformed and dumb? Easier to con?
And another Pear.
"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted." Dwight D. Eisenhower Farewell Address President 1961
Washington and Wall Street and Washington and Unions.
Teachers, Police and Fire unions would rather suffer layoffs than take a reasonable pay and benefit cut or contribute more to health insurance and retire benefits.
They would rather squeeze the public and soak them for tax increases to hire them back or maintain and increase their compensation.
We also have too many people procreating when they can't afford it, using the social system to pay their way.
Tom / Corporatism--Very profound. Only my own observation---and I mean no slight to anyones politics---but it seemed to me that under Clinton I witnessed a trickle of Manufacturing companies leave the U.S. I remember distinctly, when "W" ran his 1st time---he received over $300 million from Corporations. Soon as he was elected---we started hearing out of Washington, "This will be the China Century". Manufacturing company's left for China like it was a Gold Rush. And here we are. I looked at McCains contributor list--because he just spent $27 million on this primary. Many, many banks, and Merrill Lynch coughed up millions. WHY??? What do they expect in return?
"The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is Fascism---ownership of government by an individual, by a group or by any controlling private power. " FDR
Anyone notice --We have the finest government money can buy?
RE: "During the Great Depression, FDR, and all the politicians were very nervous about the thought of millions of unemployed young men standing around on street corners--- a very dangerous and possibly explosive situation."
Yes history tells us that FDR saw what was happening in Russia and Germany and feared it would happen here if steps were not taken. Although he is vilified by those on the right, an accurate reading shows he was trying to save capitalism from itself. The alternative was communism or fascism which was a real possibility at that time.
I fear we may have finally reached fascism with the marriage of Washington and Wall Street. To quote Mussolini,"Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power."
Tom / Thanks for the very interesting link. Encouraging,--- that CNN just announced that the U.S. is creating a jobs creation bill for Pakistan. WTF?
Washington will keep paying unemployment for the forseeable future. During the Great Depression, FDR, and all the politicians were very nervous about the thought of millions of unemployed young men standing around on street corners--- a very dangerous and possibly explosivre situation. They tell us, "We have to compete with the New Global Economy" How will we ever compete with $.20 an hour slave wages?
One very large medical supply company told me as they were moving their operations to China---"The only down side--is the shipping time" Now China is building high speed sea freighters.
I went to China recently and they are booming. I expected 85% bicycles and 15% cars. It was the exact opposite in Bejing. How they afford all the new cars is beyond me. They seem to love the Buick best of all American cars. The construction boom is unbelievable. Every new skyscraper tries to outdo the last one. They are beautiful and stunning archetectural marvels. China just put 100,000 men to work building their new high speed rail system. The country is on a roll. And we are creating jobs in Pakistan??? Have the inmates taken over the asylum?? We'll all be drinin early!
Great comments on the structural problems facing us. This is no ordinary recession; it is a post-bubble balance sheet recession not a business cycle recession. It is different than anything in my life time (65 years). The latest thing I have read on this is from Jeremy Grantham - short and well worth the read IMO.
Separately, I am not well versed in technical analysis but for what it is worth, there have been 6 Hindenburg Omens in August. A colleague follows this and says a short, vicious rally is forecasted before a major downturn.
OK / Myson & Chicocan / Both make good points. I am fed up with both sides of the aisle. McCain just spent 27 million dollars to win a stupid primary. His opponent had 2 million.
Both side have sold us out. As far as goods being made for the least ammount of money---the problem is--they still sell them at American prices. Nike is a perfect example. Costs $5.00 to manufacture a pair and $.75 to ship---they sell for $55.00--and way up from there. When Ford started building cars in Mexico they were paying $.78 an hour. The Mexicans learned that their counterparts in Detroit were making $23.00 an hour incluidng fringe. They went on strike--and Ford agreed to pay them $1.10 an hour. Greed rules in the Corproate world and Washington. In Tucson many men work for a company for many years for $7.00 an hour---with no raise. The owners don't care if tney quit---becasue there will be someone else to take the job. If you are making--say $45,000 a year, and lose your job---and end up working at the GAP for $8.50 an hour---Washinton is overjoyed---because you are simply employed. Your lifestyle tanks while they vote themselves a raise whenever they feel they deserve one.
The University of Arizona did a study 10 years ago and stated that the minimum wage should be $10.00 an hour---just to get by. The Corporations are the special interests--and they give mucho millions to these greased politicians. The horse is out of the barn and we are screwed. The billions we gave to crooked bankers and Wall Street sleeze bags did nothing to help the taxpayer. They will still get their bonus--and none of the crooked jerks get punished. For every 1,000 jobs that boogie to China 100 jobs are also lost to the manufacturing support suppliers. I know ---my company was a supplier. So with NAFTA SHAFTA and the China century--my company is gone, and my house is worth about 1/2 of what I paid for it. Interesting that my taxes have gone up for tha last three years in a row. "W" told us, "If you're against Free Trade, you're against helping poor people."
They've sure made a lot more poor people in America. Well ---they never mention "Fair Trade"--and his lifestyle wasn't even dented. The sell out came from both sides of the aisle. Clinton said, "Free Trade won't work--because it will sandpaper down our middle class --and the people in Asia making $.20 an hour will have no upward mobility." No where is my bottle of Jack?
Seems to me, the wrongs you recite were mostly started and supported by the gops too. Dont get your hopes up that things will change soon, the unending greed will go on and the crooks will ecape no matter who wins in nov.
It has been suggested by some that one can pick out a new home where they can be top dog in small pond, rather than small in big zillionaires. Brazil,argentina, costa rico,panama, canada have all been suggested. Most of us will just sit in the pan as the water gets hotter and eventually become cooked, and leave all to our kids and grandkids to fix.