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alstry (36.06)

Time To Put The Screws To Investors....

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October 11, 2010 – Comments (4)

Investors invested in a Ponzi Economy.....

The only reason the investments are solvent is because public investments are getting massive handouts.....while private investments are collapsing.....

Just look at the wimpy Gardner Bros....just sitting their silent as their nation shuts down and the public markets get massive handouts......

Strange itsn't it....it takes a Fool to show the Fools who is really the Fool........and a Fool to show the nation that the rich are only rich because they or their investments get handouts.....and some rich question the value of welfare....there is no BIGGER welfare ricipient in the world that we rich Americans....as private America shuts down....

Wonder Bread bakery in Jamaica NY

St. Mark’s Episcopal Church in Yreka California 

Scott's grocery store located on Stellhorn and Maplecrest in Fort Wayne Indiana

Update: 3 Philadelphia Grocery Stores to Close this week

Saint Stanislaus elementary school in Bay City Michigan

Bloomfield Antique Market and Furniture Consignment Center in East Bloomfield NY

Genuardi's Supermarket the Towamencin Village Square market in Lansdale

 

4 Comments – Post Your Own

#1) On October 11, 2010 at 5:36 PM, Donnernv (< 20) wrote:

Explain the massive handouts to PG, JNJ, IBM, ORCL, MSFT, et al.

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#2) On October 11, 2010 at 5:54 PM, BillyTG (28.87) wrote:

@Donnernv, Those are publicly traded companies. Alstry listed private businesses that don't get the kind of credit or lending available to big public corporations, and elite banks. You won't find any ticker symbol for WonderBread/Hostess. They just quietly shut their doors and close down.

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#3) On October 11, 2010 at 6:04 PM, alstry (36.06) wrote:

PG-

16 million unemployed people buying PG products.....

50 million people on Food Stamps and other subsidies buying PG products....

60 million people on Social Security buying PG products....

Over 20 million government workers buying PG products.....

Over 20 million government subisidized healthcare workers buying PG products....

AND ALL OF THE ABOVE WHILE THE GOVERNMENT IS RUNNING A $1.5 TRILLION DOLLAR DEFICIT.....which more than covers the above and then some.....

A few years ago, there were less than 10 million people on Food Stamps and Unemployment....COMBINED....and we pretty much had a balanced budget......

What percentage of the other companies above do you think comes from deficit government spending?

You see my friend....the only reason you can talk about buying expensive comforters and perceive yourself wealthy is because you are benefitting from handouts to greater percentage than most of the rest of the population......

In the end...we all are....it is what collective interdependence is all about....just some of us are getting more out of the deficit than others......

Remember...a deficit injects new NON PRODUCTIVE dollars into the GDP....it advances demand....and as a service economy, deficits multiply GDP much greater than if we were a production economy.....just paying a doctor $1,000,000 dollars per year from medicaid generates OVER $400,000 in State and Federal taxes alone....and once you factor the mulitiplier effect, probably addes about $4 to $5 million in GDP.

Our economy has morphed into one of borrowing to pay ourselves and support investors.....as opposed to borrowing to produce.....

In essence, debt/handouts have morphed from being a derivative of our production to the driver of our production...a subtle but very important distinction that Buffett understands very very well.....

As Buffett is essentially broke without the deficit....we all are...

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#4) On October 11, 2010 at 6:08 PM, alstry (36.06) wrote:

In additon to public companies benefitting from the government deficit and government subsidies....public companies and governments have essentially unlimited access to credit at insane terms that are not available to private companies....the debt to municipalities and public companies have doubled over recent years.....

The best example is the public homebuilders vs. private homebuilders...in the former, 85% are still in businesses....the latter, 85% are bankrupt or shut down.....simply because one had access to credit, one didn't.

Plus the terms are on so inequitable...that private companies will eventually find it impossible to compete...as we are seeing all over the place.

Just go play Monopoly with any opponent......give yourself unlimited credit to the bank, and limit your opponent.....you will win every time......

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