Use access key #2 to skip to page content.

The Black Hole

Recs

16

March 09, 2011 – Comments (3)

I am reading Rosey's look at government debt and "the black hole" that some governments are close to falling into...

I don't see the hyperlink buttons, so here's the link, http://roseysoutlook.blogspot.com/2011/03/will-california-fall-into-black-hole.html

Canada's economy is comparable in size to California and we had a $40 billion dollar budget shortfall back in 1980, which lead to our 20 years of high taxes. I know that from living in British Columbia it was an era of a sluggish economy.

California is big enough that getting its problems under control will have a trickle down effect for the greater economy.

It will be interesting to see what the market does this year after retirement savings season.

I am still not in the market, but one of my strategies when I was in the market is I looked to load up in December and January and then I was unloading through the peak of retirement saving season. The one year I borrowed in the fall to invest and I doubled the money and was out 4 months later. I generally don't believe in borrowing to invest and that was the only time I have ever done that.

3 Comments – Post Your Own

#1) On March 10, 2011 at 6:42 PM, SultanOfSwing (97.44) wrote:

dwot,

What is "retirement saving season"?  Are there months in the year when a higher % of people retire and tap their 401Ks and IRAs?  That's a new one to me.

Thanks in advance for your explanation.

I was also looking into borrowing to invest, but my wife who's ultra-fiscally conservative (God bless her) would probably have my head on a plate.

Report this comment
#2) On March 15, 2011 at 2:01 PM, soloriobrown (< 20) wrote:


I am still not in the market, but one of my strategies when I was in the market is I looked to load up in December and January and then I was unloading through the peak of retirement saving season. The one year I borrowed in the fall to invest and I doubled the money and was out 4 months later. I generally don't believe in borrowing to invest and that was the only time I have ever done that.

Report this comment
#3) On March 16, 2011 at 1:16 PM, dwot (42.85) wrote:

SultainOfSwing,

Some questions point out to me Canadian/American differences.  In Canada there is a rush to max out retirement contributions in February.  Some people do equal contributions all year.  Most people have some extra room that they are allowed to put into retirement plans above company pension plans.

There are some banks that have extended hours the week before the cutoff to deal with the high investment demand that happens here in Canada every year.

But, you did make me realize I have little idea of the rules around American plans and I have no idea if there are annual cut off dates that result in people making extra contributions at a certain time of year in the US.

And when I think about it, I do think people plan for capital gains so and that cut off is at the end of December...

I don't think borrowing to invest is a good idea.  If I'd blown it I'd borrowed an amount that would have set us back about 2 years, and actually, I further leveraged it, so actually total risk was 4 years back.

Report this comment

Featured Broker Partners


Advertisement