Question: It took Mel Gibson, what? …4 DAYS to raise $200 million mostly from average people, maybe $8 at a time?
Hardly a meaningful comparison, besides the rich insist on a better ROI than movie going schlubs do.
It’s a very meaningful comparison …
It reveals quite strongly that the “average people”, collectively, have sufficient buying power to overwhelm the relatively small number of monied elites.
What people need to do a better job of is getting the word out.
Essentially, for starters, there should be a cultural “gripe tax” — anyone who you hear at work or at the barbershop and other other such place griping about health care, jobs being shipped to India, etc, etc, should be subject to the “gripe tax” — basically they either need to write a check to the Kerry campaign for $8 or they need to shut up. I can get you the web site, the forms, and the snailmail addresses if you are interested.
Answer: How would you handle bankruptcies if you were emperor?
Bad debts are a cost of doing business for most companies, especially financial services. In commercial lending companies managers whose bad debt ratio is way under the norm is usually being too restrictive granting credit and will become more profitable if he grants more CR & incurs slightly more bad debts. I’m guessing that the percentage is relatively small, e.g., 2-3%; but that certainly varies based on the nature of the business. Bad debts are no different from any other item considered a cost of doing business, e.g., payroll, depreciation, raw materials, etc. Which would you permit to be allowed as business expenses and which would you exclude? That ain’t nearly enough… Politicos of both parties have been sweeping the issue under the rug for as long as i can remember.
There is no doubt that the form of social security/retirement savings has to change to one that guarantees every WORKING American a livable retirement. Not much can be done for those now retired or about to be retired, but steps can be taken for those fifty and younger to include portable savings that are vested immediately and follow you for life.
Question: Hi, I just got out of college and am now part of the working world! My income is considerably higher than my expenses and I would like to start learning about investment options and such. As a start I have been reading several news groups in an attempt to learn terminology, and get a feel for how things work. This is going ok, but I would also like to find some resources aimed at the novice investor. I have $20,000 or so in student loans, so it will take me a little while to pay these off, so I have some time to learn, before I really feel like I can afford to take some risks.
So I would appreciate advice on what to do now. I didn’t study economics or much else in school that would help me on this level, except learning to do research and similar general tasks. Are there books I should look into? Some other publication?
I don’t really want to go to some weekend seminar and learn someone else’s system. I think I would just be following guidelines that I don’t understand. I’d rather take some time and learn more.
Thanks for the help!
Answer: Buy a book. Specifically, I recommend “Getting Started in Stocks” published by Wiley (I think), it is clear and concise, and well written.
Once you’ve done that, you’ll have to figure out what your plan is. As you say, paying off loans is a good idea. But if the loans are not high interest, you may be better off investing some of your money as you pay the loans off, so that you can get investment income to help you pay the loans! There will be tradeoffs you will have to manage. YOu are on the right track though, learning as much as possible is a good idea, and when you know enough, make your own decisions, and take the level of risk you are comfortable with..
good luck,
Question: What’s next, debtor’s prison? Bailout all of Paulson’s buddies in the Wall Street Swindler’s Club and relentlessly pursue the unemployed who can’t repay their $150K in student debt? ——————-
Student loan fugitives
When faced with unaffordable monthly payments and relentless creditors, some see leaving the country as their only way out.
By Jen Haley, CNN October 24, 2008: 7:12 AM ET
NEW YORK (CNN) — Carl, a Florida native now living overseas, is afraid to move back to the United States. That’s because he can’t afford to pay his student loans.
Carl (who doesn’t want his last name used) stopped making his $450 monthly payments after his family incurred some unexpected medical expenses, and his $55,000 private loans went into default. That’s when the phone calls from debt collectors started, and Carl decided not to come back.
“It was made clear that if I ever came home, I’m screwed,” says Carl.
Today, he estimates his private loans are more than $70,000. Though he hopes to move home one day, for now, staying abroad is the only option he can see.
“If it means I have to live in exile from friends and family…well, that’s the breaks. So be it. But I won’t put my family in a situation where they are afraid,” he says.
While most Americans are burdened with debt of some kind, student loan repayment can be a particularly scary prospect for young people struggling to start a career. Payments are often higher than expected, and the loans can’t easily be discharged. Added pressure from debt collectors causes some grads to flee their loans by fleeing the country.
“These are people new to borrowing and they didn’t understand what they were getting into,” says Mark Kantrowitz of Finaid.org, an online student loan information Web site. “It’s a very sorry situation that it comes to students feeling they have no option than to leave the country,” he says. “It’s a sign the system is broken.”
To date, there is about $60 billion in defaulted student loan debt according to Chris Lang of the New York-based debt collection agency, ConServe.
Answer: In Denmark the Danish Government pays students to get a University Education. The idea being it is a benefit to the nation to have it’s people better educated. In America we spend $10,000,000,000 a month on a war in Iraq or bail Banks out for $700,000,000,000 but neglect our peoples education or health. Why aren’t the Wall Street gangsters honoring their obligations? Also, the Lambo buyer can discharge his debts in bankruptcy whereas the student loan borrower cannot. The whole student loan scam is like mafia loan sharking – the shylock makes loans to people they know will never be able to pay it back and when the sucker defaults the mob owns his ass. He does whatever they say or Guido comes and removes his kneecaps. Why do you suppose there’s been no downsizing, restructuring etc in academia such that college costs have risen at 2 or 3 times the general rate of inflation? Because the shylocks know that they can create a whole bunch of debt slaves out of naive young kids who think that they’ve got to go deeply in hock to have any chance at a future career. Then reality sets in, after college they’re driving a cab and Guido is looking for them. You’re probably one of Guido’s bosses.
Question: i have always had a theory that a Laissez-Faire free market conservative economy has the capabilities to zero itself in value. once a self re-inforcing downward spiral starts and takes hold, it may be almost impossible to stop its spread till there is nothing left. it almost happened in 1932. we got lucky, we got FDR. otherwise leave it alone hoover/mellon would have ridden the bomb down like slim pickens did in dr. stranglove. this is of course bad news, its spreading, and spreading fast.
Don’t worry! Universal government health care will solve the problem.
Answer: this proves again that “socialism does not work”….. they don’t want to make any more loans because their “government subsidies” were cut…..in other words, without the fat government welfare,they don’t know how to run a business and make a profit. very telling.
” How many People have the DemocRATS murdered with thier social programs of “Abortion”, “Forced race busing”,Affimative Action”, ” Theory of evolution” ” Seperation of church and state”..all these things have caused many peoples deaths.” i have always had a theory that a Laissez-Faire free market conservative economy has the capabilities to zero itself in value. once a self re-inforcing downward spiral starts and takes hold, it may be almost impossible to stop its spread till there is nothing left. it almost happened in 1932. we got lucky, we got FDR. otherwise leave it alone hoover/mellon would have ridden the bomb down like slim pickens did in dr. stranglove. this is of course bad news, its spreading, and spreading fast.
Question: http://www.independent.co.uk/news/world/americas/usa-2008-the-great-d… >> We knew things were bad on Wall Street, but on Main Street it may be >> worse. Startling official statistics show that as a new economic >> recession stalks the United States, a record number of Americans will >> shortly be depending on food stamps just to feed themselves and their >> families. >> Dismal projections by the Congressional Budget Office in Washington >> suggest that in the fiscal year starting in October, 28 million people >> in the US will be using government food stamps to buy essential >> groceries, the highest level since the food assistance programme was >> introduced in the 1960s. > That can’t be right; all these illegal aliens are supposed to keep our > economy pumped up. You know, all any economy needs is an excess of > cheap labor, or so we’ve been told. But if they can’t help our > economy then what the f*ck good are they?
Removal of all illegal aliens would trigger a great economic boom.
Answer: They sure haven’t done much for out economy in the past. Of course people have to buy new, what Mexicans steal,so its’s a boon to the bicycle industry. Hospitals have to employ more people to serve illegals, but then the hospital has to increase prices for those who pay. Mexicans pick lettuce but then everyone gets a disease from the Mexicans shitting in the fields on the lettuce. The clever bankers gave mortgages to Mexicans and 2nd mortgages, and now those Mexicans are back in Mexico or Texas spending the 2nd mortgage money, and the houses are trashed and vacant. I’ll bet Bank America wishes they knew the real names of the illegals who they gave loans and credit cards to. Bwaaahhhhhh. Even Banco de Mexico isn’t that stupid. I dunno Seth, we really need illegals like Ted Kennedy needs bigger tits. Mexicans are like abandoned dogs. Lay down with them, and you catch fleas.
Question: I totally agree, paying 6% to receive 4% is lost money…but perhaps I havn’t clarified what I am proposing. Assuming this loan allows me to invest money I have already saved. So taking the loan and putting it into a savings account yields me 4% on this money and allows me to invest the money I have already saved up. So in reality, this loan is only costing me 2% yet gives me the ability to invest whatever money I had previously saved because it is no longer needed for expenses. I am very confident I can meet the break even return of 2% and anything over that is pure profit.
Answer: You say you are a finance major.
So you can see, therefore, that it is irrelevant whether you borrow and invest the money, or borrow, and invest other money? (only difference, in the former case, you *may* be able to deduct the interest from taxable income).
The outcome is entirely dependent on the gap between your after tax borrowing rate and your after tax investment return.
Since you are a finance major, you know that to get inv return borrowing rate, it is almost certain you will have to take on more risk.
There really is no free lunch. The first thing they teach you in finance101. Here’s something I know: Over the last 100 years, the long term annualized growth rate of the U.S. stock market (as measured by popular averages like S&P and DJIA) has been about 10-12% annualized. (closer to 10% for large-caps, closer to 12% for small caps). Which reflects the long-term growth of the U.S. Gross National Product.
Now you say you are getting a 20% annualized return, but you’re having to pay 5% (at least) annualized for that money in loans. That means you’re really getting a 15% annualized return *at most*.
Well, that’s a few percentage points more than the 10-12% figure for the market as a whole. But if you’re getting a few percentage points more, somebody else must be getting less in order to keep the average at 10-12%. It’s impossible for everyone to make more than 10-12% in the market–because they *are* the market! Somebody has to be out there to purchase the stocks you sell at a big profit, and sell the stocks you purchase at bargain prices.
So if you’re a skilled investor in the class of Warren Buffett, congratulations and best wishes. But the logic of the situation is that everyone in the stock market can’t hope to do that well. There is no way that the U.S. stock market can create tens of millions of Warren Buffetts, because the U.S. economy is not big enough for that.
Question: By Martha Irvine, The Associated Press
Christian Miller can’t get a car loan and, at age 27, has returned to his parents’ New Jersey home, forced back by the double load of credit card debt and student loans.
Like other “20-somethings” across America, he’s found that graduating from college means having to face tens of thousands of dollars in debt. Some even drop out before they finish school, while a growing number are declaring bankruptcy.
“It stinks,” said Miller, who arrived on his parents’ Livingston, N.J., doorstep on New Year’s Eve two years ago.
Financial experts predict this year’s graduates will have an even tougher time. Never has a generation entered a recession-weakened job market so debt-ridden.
“I have a negative net worth of $14,000 — it’s great!” Jessica Lopez said sarcastically.
Answer: I’m not sure what the big deal is. My wife and I had close to 60K student loan debts between us after we graduated with master’s degrees, and we paid them off. Took ten years, sure. Of course, we both had jobs. I’m old enough to have been through a couple of recessions.
Hey, the conservatives taught me to stand on my own two feet. If I can’t get a job, it’s my fault. If I charge too much on my credit card, it’s my fault.
They learned me good.
Irony intended.
Seriously, though, maybe some of these recent college grads will have to take jobs that they’d rather not have to pay off those debts. I know I did.
Question: I read it quite the opposite. I guess that’s what markets (and elections) are made of.
I especially thought Gore took the high road at the end, while Bush rolled in the mud. I nearly forgot:
It was also pretty funny to hear Bush complaining about how much money Gore is spending on his campaign. Isn’t Bush the guy who raised (and I guess spent) more money than just about anybody in history?
Answer: driving back tonight I listened on the radio, gore came off as pandering, political in the worst sense and a little snotty
bush came off as a pretty decent guy, real guy, stumbled a little especially towards the end but overall he came off as the real populist (annoying as hell that as a conservative in the kirk tradition, my guy has to be a populist but whatta you gonna do), absolutely destroyed gores credibility on the campaign finance issue.
bush has won the election, the market will start rallying now. Bush should have commented that Gore may need prescription drugs for his breathing. Every Bush answer was met with Gore sighs.
I particularly liked Bush’s answer regarding a financial calamity. He would consult with Greenspan, weigh the advice, then take appropriate action.
Question: I have 75 shares of Micro Soft and don’t know if I should sell or not. I don’t own any other shares and I am 25 years old. I am about $10K in debt at the moment and am thinking about cashing this in to pay off student loans. What should I do? 75 shares is not that much!!!
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Answer: Debt seems to increase at a much faster rate than almost any stock appreciates. The ONLY way to be rich is to owe no one anything. Always pay off debts first. Even if you can only make a dent in a debt, it is worth beginning. I my opinion, the only debt worth having is a mortgage on a house that is appreciating in value. Sell the stock on a good day when it is up. Or put a good till cancel order at $96. Hope u have a discount broker. Hopping credit cards may save you money on interest in the short term, but keep in mind that each account you open stays on your credit report for seven years. If you hop too many times, you will start being turned down for credit because of “too much revolving credit” even if most the accounts on the report are closed.
$10,000 is a lot of debt, and you will be paying a lot of interest even if the rates are low. Even if you think MSFT is going to do well, I wouldn’t be holding so much debt. If you sold half your shares, you would reduce your debt by about 3500 and still have a substantial holding in MSFT.
Question: Anybody have a nice success story? Something like “I got into investing with 2 or 3K. Learned the ropes, did some research…paid off part of my student loans…”
Just trying to get a taste of this ng’s dwellers… but no need to read into the question regarding my financial situation. If it makes any difference, I’ve been handed a few bucks by a gambler of a relative who has money to lose. The incentive for me is that we split the profit…and I get to learn a little more about the market using real dough…
I spose the question was bait to see who’s here, what they have to work with, what their goals are, et cetera…
Answer: So if you went to an expensive college, and couldn’t afford it up front and had to get a loan – that means that after you’re done with shchool you couldn’t possibly be in a better financial state?
I dunno bout you, but I make a crapload more money now that I’m out of school than I did when I was actually *in* school 
Isn’t that a mite harsh about the student loan? Maybe the person who needed a loan to go to college..now has graduated and has a position where they can afford to lose 2-3K..including paying off the student loan!!! The rest makes sense.
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