Index funds are great in that they almost always beat the index they intend to beat.
For example, an index fund designed to beat the SP500 will most likely only have a 48% loss while the index itself has a 50% loss.
Super deal and well worth the expense.
Saturday, November 12, 2011
401K and IRA at Work
Please see our preceding post about US insti collapse.
Do not forget your US 401K and IRA funds are in fact in the hands of insti's unless you have taken care to handle the funds 100% independently.
In case you had 401K or IRA money with any insti in 2008, you have probably experienced what happens to your money in the hands of insti's.
Best wishes.
Do not forget your US 401K and IRA funds are in fact in the hands of insti's unless you have taken care to handle the funds 100% independently.
In case you had 401K or IRA money with any insti in 2008, you have probably experienced what happens to your money in the hands of insti's.
Best wishes.
US Bank Collapse - EUR/USD
The US financial institutions (insti’s) are the same as always.
The head folks want to simply “take the money and run.”
The first grand collapse was in the US housing market when the banks would/should have failed in 2008.
Following that grand collapse, the insti’t had to vacate the US for the lack of opportunity and send their USD to Europe where earnings were higher for the US insti’s.
(Of course, that meant the banks had to play the “credit-score game” and refuse to lend any USD in the USA; therefore, housing prices are very low since a home purchase is a leveraged event – you would need to buy a home in the Euro Zone to get a loan.)
Oops. Another mistake and severe high-risk situation for YOU, not for the INST’S because they are using your money and skimming from the top.
When the unproductive Euro situation resolves itself in another US credit/bank collapse, just make sure you have no funds with any US insti… simple; otherwise, YOU take the default losses (not the US bank/insti) just like the MFB (MF Bank Collapse) situation of bankruptcy. Guess what, the head folks got MF paid but NOT YOU.
The head folks want to simply “take the money and run.”
The first grand collapse was in the US housing market when the banks would/should have failed in 2008.
Following that grand collapse, the insti’t had to vacate the US for the lack of opportunity and send their USD to Europe where earnings were higher for the US insti’s.
(Of course, that meant the banks had to play the “credit-score game” and refuse to lend any USD in the USA; therefore, housing prices are very low since a home purchase is a leveraged event – you would need to buy a home in the Euro Zone to get a loan.)
Oops. Another mistake and severe high-risk situation for YOU, not for the INST’S because they are using your money and skimming from the top.
When the unproductive Euro situation resolves itself in another US credit/bank collapse, just make sure you have no funds with any US insti… simple; otherwise, YOU take the default losses (not the US bank/insti) just like the MFB (MF Bank Collapse) situation of bankruptcy. Guess what, the head folks got MF paid but NOT YOU.
FED 1930 Policy in 2011
Q: Why has the FED been ineffective in helping the US economy following the credit/bank debacle in 2008?
A: Because the FED is made up of kind-of-old fellows who take their main education from the agricultural society in the US 1930's, a full decade prior to WWII.
Q: Why is 1930 different in basics from today in 2011?
A: Because in 1930, the US didn't depend on middle-east oil, on factories in Asia, or on the European marketplace. Also, there were no supercomputers, satellites, internet (or even cell phones) in 1930 to keep the WW marketplace 100% consolidated real-time as it is today.
Q: You mean the axioms are completely different and the FED doesn't understand?
A: Most definitely yes.
_________________________________
Economics is overwhelmingly a SOCIAL STUDY. It's about behavior. The FED has no clue.
As always, ignore all rhetoric and focus only on results. "No results" = "no clue."
Think about it yourself. The US FED has a number of geographical "regions" within the US. Huh? That made sense when you needed to travel from one region to the other by covered wagon. Today? Hello? No clue.
A: Because the FED is made up of kind-of-old fellows who take their main education from the agricultural society in the US 1930's, a full decade prior to WWII.
Q: Why is 1930 different in basics from today in 2011?
A: Because in 1930, the US didn't depend on middle-east oil, on factories in Asia, or on the European marketplace. Also, there were no supercomputers, satellites, internet (or even cell phones) in 1930 to keep the WW marketplace 100% consolidated real-time as it is today.
Q: You mean the axioms are completely different and the FED doesn't understand?
A: Most definitely yes.
_________________________________
Economics is overwhelmingly a SOCIAL STUDY. It's about behavior. The FED has no clue.
As always, ignore all rhetoric and focus only on results. "No results" = "no clue."
Think about it yourself. The US FED has a number of geographical "regions" within the US. Huh? That made sense when you needed to travel from one region to the other by covered wagon. Today? Hello? No clue.
2012 Economic Strategy from Ben Bernanke
In Silicon Valley, we like to think in terms of problem solving and also in terms of basic user-language programs.
We have learned from 2011, and now understand the 2012 strategy as follows.
__________________________________________
Step 1: Define the problem, i.e. the US economy is not robust.
Step 2: Assume you must deflate (lower the value of) the US dollar (= price inflation) to have a robust economy, jobs, houses, etc.
(This has been a FED assumption for many years learned from a 1930 lesson that is now obsolete. Kind of like traveling by covered wagon over Donner Summit and exactly like trying to pull yourself up by your own boot straps.)
Step 3: From Step 2, Decrease the value of the US $. (Effectively print more USD as in “quantitative easing” or anything else you want to call it.)
Step 4: By definition, Step 3 increases the value of oil (and all prices) in USD.
Step 5: Measure the continued worsened economic decline due to the increased day-to-day price of oil, gasoline, transportation, fast food, rent, etc. from Step 4.
Step 6: Report that economic performance continues to be poor. No jobs, no loans, nothing except price inflation from Step 5.
Step 7: In that case Go To Step 1.
Brilliant!
We have learned from 2011, and now understand the 2012 strategy as follows.
__________________________________________
Step 1: Define the problem, i.e. the US economy is not robust.
Step 2: Assume you must deflate (lower the value of) the US dollar (= price inflation) to have a robust economy, jobs, houses, etc.
(This has been a FED assumption for many years learned from a 1930 lesson that is now obsolete. Kind of like traveling by covered wagon over Donner Summit and exactly like trying to pull yourself up by your own boot straps.)
Step 3: From Step 2, Decrease the value of the US $. (Effectively print more USD as in “quantitative easing” or anything else you want to call it.)
Step 4: By definition, Step 3 increases the value of oil (and all prices) in USD.
Step 5: Measure the continued worsened economic decline due to the increased day-to-day price of oil, gasoline, transportation, fast food, rent, etc. from Step 4.
Step 6: Report that economic performance continues to be poor. No jobs, no loans, nothing except price inflation from Step 5.
Step 7: In that case Go To Step 1.
Brilliant!
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