Thanks squntpea and Trad. I can't sleep very well last night and my real problem isn't the market. What I didn't write is one thing you never lived with the same frecuency like us, and in this point I'm agree with another two more persons:
Mr Warren Buffett said last saturday: "the cost of the recent and massive Treasury rescue 'll be paid with INFLATION".(I remember the idea, not the exactly words)
and three months ago, Mr Bradford De Long -at Finantial Times- wrote something coinciding with fear's Trad -my fear too-: "during the next years, should be the states who decide the production".
China decides all the times every life. No democracy and 'll continue in this way. With or without "China capitalism", they repeat the state and THE LIFE controls. Russia in buying the good and bad corporations. Is taking all they think strategy or profitable in the future. USA had to buy AIG, CITY and FDIC can't use its knife with the big banks corporates.
That's the point and both persons aren't socialist.
Do you understand what I'm trying to say?
I don't have you or Mr Darth acknowledgment but I've a stupid one in replacement because of my nacionality (I love my country): INFLATION or Hyperinflation over our shoulders every decade of my life. I don't want these for all of you in the next years. Believe me.
When I was in college in the early 1960s I had a friend from Brazil. When he got here he converted his money to dollars and said he just stared at it fot a while. He had never seen a not with just a 1 on it.
At that time Brazil was going through hyper inflation. He said it cost 10,000 cruzeiros just to buy a pair of socks. The next day it might cost 11,000. They had to keep all their savings in hard goods, gold, jewels or notes that could be sold for that day's price whenever you needed cash. They never held cash overnight.
Obama doesn't understand where wealth comes from. He has never made anything. He just wants to take wealth from those who have it, and if that's not enough he will tell the Fed to turn on the printing presses. If we go down this path too far we in the US will find out what you know, and how heavy the weight on your shoulders has been.
I worked -during all the nineties- montaging WWTP (waste water treatment plants)for KO. Never below 16 hours/day. Returned to Argentina with the new age (2000). The money I kept offshore (80%) is my Social Security. The other 20% was in our banks -SANTANDER- and I lost all in no more than five months because of inflation during 2001 crisis. Yes: 3 (may be more) hard worked years to the trash. ........................................ 2001 >july > BRAZIL had their election in the next two months and LULA (the "communist" if you look for WSJ, Bloomberg or Finantial Times..) was first at polls.
Talking with some friends here, I said: The next economy minister with Lula or the chief Brasil Central Bank should arrive from City GROUP. I made a mistake. He came from Fleet Boston (Meirelles).
Because of my argentine deception, I took a hard -crazy?-decision > I bought Brazil bonds @ 46 dollars (brasil 2027)3 days before election date. All my money in that risk. Just pay I went to my house in the south near the lakes. I didn't read any newspaper during 30 days. No TV too. Only cooking. When I arrived Bs As again, Lula was receiving a lot of claps and Meirelles took the right way. My bonds around 6o dollars and ten months later 87...120... In the same year I lost 3 and won 8. We -you and me- live in America and is a magic place. Now, the magic problems are our misunderstandings about where are we going.
I hear what everyone is saying but da risk was deflation as I've previously pointed out. Da wealth destruction had to be replaced by something and dat was Fed spending. Bernanke got it right although he didn't anticipate well. Everyone else got it wrong. We financed da spending via China and da American tax payer.
Now, we need to grow our way out of da mess of debt. Da best way is through innovation of course but we'll need more. Da limiting factor will be carbon supply (i.e., oil/gas/coal). In my mind, da only way to get around dis issue is to develop alternative energy sources. I don't care what it is but it must be done.
I hate to raise taxes as I've suggested a 20% flat tax in da past. Dat would spur growth. But, I will say we can kill two birds with one stone if we tax gas. Use da proceeds to pay off debt and focus our efforts on alternatives such as hydrogen, fusion, electric, solar and wind. Yes. I would increase da gas tax.
And, I would tax Jack for everytime he farts on dis here bored. I'll call it da Psycho tax. Dank you. Dank you very much.