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sschullo

Obama Blasts Wall Street's Bonuses

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If the government can't, or shouldn't because of their own greed, to save capitalism from itself, who will?

 

Is this really what the federal government is doing? I don't see a whole lot of effort at saving capitalism, but I sure see a good deal of effort at socializing the economy.

 

 

Hi AP

"Socializing the economy", thats a big leap, but if you listen to the extreem right, sure anything from the government the knee jerk lable of socialism. The money is flowing into the current captialist structure. If the governorment requires some requirements to get that money, thats good for the taxpayers. If there are too many strings, DON'T Take it. The ownership still belongs to the private sector.

 

Happy Super Sunday!

Steve

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Hi AP

"Socializing the economy", thats a big leap, but if you listen to the extreem right, sure anything from the government the knee jerk lable of socialism. The money is flowing into the current captialist structure. If the governorment requires some requirements to get that money, thats good for the taxpayers. If there are too many strings, DON'T Take it. The ownership still belongs to the private sector.

 

Happy Super Sunday!

Steve

 

 

We'll have to disagree on this one, Stevie! That's OK, though, because we are in strong agreement with investing. In fact, one of your recent posts on bonds served as a good reminder to me -- the one about the same percentage of bonds as one's age.

 

Enjoy Super Sunday in beautiful Palm Springs. It must be, what, about 80 degrees there today?

 

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Hi AP,

Darn, we don't agree. My world is shattered!

Actually, we were in LA to visit some friends and to see the game. Wow, the most exciting super bowl game ever and I have seen them all starting with the Packer Chiefs game in 1966. BTW, tickets were available for that game for $12.00!

Have a good day,

Steve

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...Obama is an amazing individual. I knew I would vote for him 2 years ago simply by reading the title of his book that I just read, the audacity of hope. Thats courage.

 

 

...I can think of two world leaders, one US president and the emperor of Japan during and after WWII who were above the law, neither was prosecuted nor jailed.

 

Steve,

With all due respect... we get it, you love Obama and I am not just refering to this specific thread. Please keep in mind that not all who frequent this forum get that tingly feeling up their leg every time his name is mentioned nor are afflicted with BDS. I was under the impression that this is a 403(b)/457 forum, not a political discussion forum.

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Hi jarhead,

 

Sorry that you and ft6 are offended. Hope and transparency are the center pieces of our new president. As you know, transparency is a big problem with 403bs and the hope needed for reform. But I am guilty of making that connection to our new president. I admit that it’s a bit of a stretch and too political for this forum. Still, I feel so good and sorry that all don't feel that way, which is not a surprise given the horrendous and dangerous divisions in our country.

 

If I and most of the country are afflicted by "BDS", I would like to know what it is. I get the feeling that BDS is a good affliction, but there I go again. sorry.

 

Is it OK to talk about the Super Bowl?

 

Have a good day,

Steve

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I also think politics are not this forum's purpose. However, it seems to me that the return on our investments are tightly linked to what government does and thus there is some overlap.

 

I thought both candidates showed their naivety on the economy during the meltdown in October and both showed their inability to lead during a time of crisis, I believe the markets would probably reacted the same to a McCain administration as to an Obama administration as it appears the markets see "zero" leadership at this point. Our Treasury secretary is a good guy, but he willfully cheated on his taxes - but regardless of that fact, he was the person who oversaw Citibank and crafted the AIG debacle and let Lehman fail....this isn't change and it is a demonstration of failed leadership.

 

I think we are all looking for leadership during this crisis and the markets will not recover until they see some. Obama has thus far failed to inspire confidence as it looks like he doesn't know what to do. My hope is that he just isn't yet ready with a comprehensive plan and that he would rather wait and be thorough than release something early that is full of bugs. He has a chance here to become a true leader of all Americans, but he's gotta act soon. American's will follow if he comes up with something that makes sense - the current stimulus makes zero sense and is frankly embarrassing (not to mention the fact that it looks like four more years of the last eight).

 

Obama needs to come to the American people in a prime-time broadcast (kind of like a fireside chat) and lay out a step by step plan that Dems and Repub's can agree on. He needs to lay out the details and they need to be good and he needs to walk us through it in an easy to understand manner (step 1, this is why and how, step 2, this is why and how) and he needs to show confidence and inspire. If he does this and his plan makes sense, the markets will react positively, Americans and business will react positively and we can get on to the hard work that is ahead of us. We can recover from this, we've done it before and we can do it again. We just need leadership - without it, we'll just continue to fizzle.

 

Sorry for being political - things are just to intertwined right now to have an opinion on investing and not politics.

 

ScottyD

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There you go again Schullo! Don't you know the benefits of the last 8 years were just about to take fruition when the socialist scare toppled the "house of cards"? The perception of stock and bond values based on transparency is a ruse. The tax lawyers will make more money whatever passes or doesn't.

 

A major Vanguard advantage is low fees, which are not suffiecient to add lobbyists for lower CEO bonuses. That will be up to us, either as individuals or collectively, depending on our view of the "politics of change". Many years ago when new funds were being created they could've started the "low CEO pay" fund, to satisfy those of us who complain about our dividends going to the ceo instead of us, the investors. But people don't get very involved in this stuff. It must be the psychology of humans that keeps most of us cowed about change. After all, doesn't greed trump common good?

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There you go again Schullo! Don't you know the benefits of the last 8 years were just about to take fruition when the socialist scare toppled the "house of cards"? The perception of stock and bond values based on transparency is a ruse. The tax lawyers will make more money whatever passes or doesn't.

 

A major Vanguard advantage is low fees, which are not suffiecient to add lobbyists for lower CEO bonuses. That will be up to us, either as individuals or collectively, depending on our view of the "politics of change". Many years ago when new funds were being created they could've started the "low CEO pay" fund, to satisfy those of us who complain about our dividends going to the ceo instead of us, the investors. But people don't get very involved in this stuff. It must be the psychology of humans that keeps most of us cowed about change. After all, doesn't greed trump common good?

 

 

Sure greed has trumped common good the last couple of decades. Thats the major reason we got to where we are right now. Yes, I am a bit naive, perhaps a dreamer, but it sure beats being a cynic.

Vanguard does not have to add lobbyists to further their cause. Heck, VG is the 2nd largest fund company in the country. They attract investors.

have a good day,

Steve

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I also think politics are not this forum's purpose. However, it seems to me that the return on our investments are tightly linked to what government does and thus there is some overlap.

 

I thought both candidates showed their naivety on the economy during the meltdown in October and both showed their inability to lead during a time of crisis, I believe the markets would probably reacted the same to a McCain administration as to an Obama administration as it appears the markets see "zero" leadership at this point. Our Treasury secretary is a good guy, but he willfully cheated on his taxes - but regardless of that fact, he was the person who oversaw Citibank and crafted the AIG debacle and let Lehman fail....this isn't change and it is a demonstration of failed leadership.

 

I think we are all looking for leadership during this crisis and the markets will not recover until they see some. Obama has thus far failed to inspire confidence as it looks like he doesn't know what to do. My hope is that he just isn't yet ready with a comprehensive plan and that he would rather wait and be thorough than release something early that is full of bugs. He has a chance here to become a true leader of all Americans, but he's gotta act soon. American's will follow if he comes up with something that makes sense - the current stimulus makes zero sense and is frankly embarrassing (not to mention the fact that it looks like four more years of the last eight).

 

Obama needs to come to the American people in a prime-time broadcast (kind of like a fireside chat) and lay out a step by step plan that Dems and Repub's can agree on. He needs to lay out the details and they need to be good and he needs to walk us through it in an easy to understand manner (step 1, this is why and how, step 2, this is why and how) and he needs to show confidence and inspire. If he does this and his plan makes sense, the markets will react positively, Americans and business will react positively and we can get on to the hard work that is ahead of us. We can recover from this, we've done it before and we can do it again. We just need leadership - without it, we'll just continue to fizzle.

 

Sorry for being political - things are just to intertwined right now to have an opinion on investing and not politics.

 

ScottyD

 

 

Hi Scotty,

I agree that politics and investments are a mixed bag. What do we do with the bad behavior on Wall Street? Just forget it and go on business as usual. I would like to believe that perhaps many more people will learn enough about finances to manage their own money via indexing. Its a pipe dream. Money appears to be very important to the health of any individual or family and yet people will still cling to advisers and firms to manage their money.

The president could challenge the American people to do just that. He talks about us taking more responsibility and that we are all in this together. Education would be a great antidote to these terrible times. It would be risky and misunderstood and right wing radio would laugh him out of the room for attempting such an idea. Its too remote and not practical.

 

I have no idea how leadership would look like in this area. I have not seen it here in California except in some occasions with the process of introducing and processing ab2506 through legislation. How would political leadership look like that would have an effect on the bottom line, our investments?

 

Steve

 

PS I reread Obama's book, The Audacity of Hope, chapter on Opportunity. If you want to know why the stimulous plan is the way it is, its in that chapter. I agree that neither he nor McKain anticipated the current crisis (But then, who has?), but he talks about the entire history of the delicate tension between the government and private sector systems. Starting with the value directly from the constitution that the people have a fundamental right to private property, the battles between Jefferson and Hamilton, what Lincoln did to promote opportunity through the Homestead Act of 1862 which created agriculture colleges throughout the country IN THE MIDST OF THE CIVIL WAR! Incidently, one of those agriculture colleges was opened in 1876, in a tiny remote town in a small beautiful green valley in River Falls, Wisconsin. It was at this college, that little ole me, the first one in my family of Italian Americans to attend. Imagine that, a polititian signed a bill that effected me and millions of other Americans decades and a century later. (What politician even thinks about tomorrow in today's short term get reelected mentality). The most significant investment in his mind is education. How can that be political. We talk about encouraging teachers to educate themselves on financial matters here all the time.

 

Sorry to make this so long, but Obama wrote about the signficants of each president and his administration's effects on economical opportunity all the way up to H.W.Bush (New Deal, Reagan's government is the problem stuff, Clinton and HW Bush, globalization, oil dependency and its effect). He wrote about meeting Warren Buffett. Mr. Buffett asked Obama this amazing question: "Why Washington continued to cut taxes for people in his income bracket when the country was broke?" Why would a billionaire say that when, according to Buffett, his peers want to keep every penny because its all about me, me, me. This is one billionaire that made it BIG with values that he grew up with and has NEVER forgot. There are too many people who are successful and they either forgot or they never knew what its like to work from the bottom.

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