WEEKEND READING
21 November 2009 by Cullen Roche
3 Comments
Some weekend reading:
- Don’t be a sucker. Take your gains - Forbes
- Time to count their blessings - Barrons
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Comments
re: Rogers: “How I made my first million”
They say the first million is the hardest, but that wasn’t my experience. My portfolio went well over a million in the dot com bubble. Of course, like others, I didn’t sell and rode many stocks back down. I haven’t made it back to a million, and doubt that I will. So for me, it wasn’t the first million that was hard, but getting back to million again will be very hard.
I guess that’s why when I see the current rally, it’s hard not to think back to 1999-2000. It seems people know that this rally is being driven by the massive liquidity being pumped into the system by the Fed, but still keep buying. My advice, if you’ve made more than you could have imagined in this run up, don’t let it slip away being by greedy.
I agree with one of the articles. The U.S. is facing a government debt crisis down the road in a few years (maybe as few as 2-3 years), where the government will need a bail out and unfortunately the U.S. Government is not only too big to fail, but it is also too big to save. The government will not quit spending, it has taken on the debt that the financial crisis was caused by, and soon there will be more and more people retiring with less people entering the work force so growth will be constrained. Though this isn’t only a U.S. problem, other developed countries have unsustainable debt levels (like Japan though its debt held by citizens is low or the U.K.) This is probably the reason why gold is so high and probably won’t go much lower even if the dollar rallies from here because people are beginning to worry about the viability of the U.S.
Janet Tavakoli Retracts Her Apology To Goldman Sachs, Calls For More
Regulation Of The Government Backstopped Hedge Fund
Goldman’s Turn to Apologize
In light of the SIGTARP report, I withdraw my earlier apology to
Goldman. Public commitments to AIG are currently around $182 billion.
If you wonder what Goldman CEO Lloyd Blankfein meant when he said:
“[Goldman Sachs] participated in things that were clearly wrong and we
have reason to regret and we apologize for them,” think of Goldman’s
role in AIG’s crisis, Goldman’s bailout, and Goldman’s ongoing heavy
taxpayer subsidies. That way, one of you will be genuinely sorry about
it.
http://tinyurl.com/yhh6sbs