Followed by 5
Ignored by 9
In United States
Registered Apr 30, 2009
Reality's most recent comments:
- On 22 Oct 2014
Middle Class Wealth Gone!,
The chart shows two problems:
1. Prior to "Greenspan Put," recessions and market crashes increased the percentage of wealth held by the bottom 90%. The top 10% grow their wealth faster during economic expansions, as expected, and take their lumps during recessions and crashes before the late 1980's. However, after the late 1980's, the top 10% wealth growth out- paced the society as a whole rain or shine.
2. The statistics used to generate the graph may not be complete: present cash value of multi-decade if not life-time welfare handouts are probably not in the graph. For example, a family qualifying for life time housing subsidy of $1500 a month at current discount rate is having the equivalent of $400 thousand worth of asset; life time medical insurance and care with no cap on total payout are worth multiple millions! Those "assets" for being a poor citizen in America are obviously not included in the graph; adding back those baseline "assets," the percentage of wealth actually enjoyed and potentially available to the bottom 90% increase dramatically.
- On 18 Oct 2014
American Housing Survey finds 1 in 3 homes is a rental,
That isn't the point. I thought the stock market was going down so I sold my stocks. I thought real estate was going up so I bought real estate.
What kind of ridiculous prick spends years telling people real estate would crash while simultaneously holding an asset that he could lose a large sum of money on?
Why haven't you sold all your cars yet? Their value as used cars are certainly going down in the next few years.
Why haven't you divorced your wife yet? Her sexual appeal will certainly be going down in the next few years.
People hold onto their houses in a down market for numerous reasons:
1. The capital gain tax liability is so huge on top of the regular transaction cost that it makes no sense to go through the round trip;
2. Homestead protection against law suits. Cash can not be thus protected;
3. The house/building generate enough rent to off-set down turn;
4. Kids going to school in the local area, where there is either no rental or rental price is high;
5. Rebuying a similar house would require mortgage (again), and there is no guarantee of low interest rate at the next market trough . . . in fact, probably not there.
Just to list a few. How long have you owned real estate anyway? Why did you not sell all your holdings in 1999 and 1991?
- On 16 Oct 2014
As predicted here it comes...,
Most of the stuff Walmart sells is name brand that cost more elsewhere. Colgate toothpaste as an eg. I read 30% of all shampoo sold in the US is sold by Walmart. They manage to sell things cheap and still make a profit due to efficiency and sheer volume.
Why should anyone care how much Walmart makes, as long as you save money by shopping there. Last year I even got my iphone 5s from Walmart and saved a bundle.
The most powerful competitive edge Walmart had used to be their computerized inventory system, which was far more advanced than any of their brick-and-motar competitors. It literally could detect local consumer demand and stock the particular local store differently on the truck's route. Nowadays, Amazon might have an even more efficient inventory system; we shall see. Retailers live and die by the efficiency of their inventory system. I saw how disorganized Woolworth and Kmart shelves became, and shorted their stocks many years ago, with big pay-off's each time.