April 10, 2014
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Update Tuesday: Long Term 401K Investors should sell all stock positions–see ‘Core Portfolio”. Everyone else just hold your dividend payers.
Update Monday: The market is higher today, BUT the trend is still down. I suggest holding and watch the earnings reports as they come in.
Update Saturday: The trend in the markets is still down. Earnings are continuing next week and things could get rough. It is possible we could see a 10% correction which would provide a good buying opportunity to buy stuff on sale. The dividend paying investments in our portfolio are holding up well and I suggest doing nothing right now. Just wait and watch….I would certainly NOT be buying anything right now.
The markets got whacked today, Thursday. We are in earnings season with banks starting to report tomorrow. The cynics among us, including myself, assume that some bad earnings numbers were leaked out today…illegally needless to say. The technicals are telling me we are going down further. Nothing you can do, just hold all positions. Generally these pullbacks turn into buying opportunities.
Most Americans have no clue about the financial situation of the USA. As long as they get their Social Security, food stamps, and other government handouts, what’s to worry about? Just tax the rich and everything will be wonderful. Wait until the checks stop arriving, and get set for rioting in the streets. Take a gander at the following in the Washington Examiner.
American workers would have to cough up a one-time “debt reduction fee” of $106,000 to pay off the nation’s debt that has grown 58 percent under President Obama, according to Harvard University’s Institute of Politics annual report on the USA.
The 91-page report provided to Secrets pegged the nation’s debt at $16.7 trillion, up from the $10.6 trillion inherited by Obama. “The debt has grown so quickly because of large and repeated annual deficits in federal spending,” said the report.
What’s more, the Annual Report of the USA, from the student at the Harvard Political Review and done in partnership with the American Education Foundation, found that food stamp usage has surged 77 percent during the recession and that Social Security benefits will be slashed 23 percent starting in 2033 unless Congress and the White House institute sweeping reforms.
The report is considered one of the nation’s authoritative independent analysis review of federal spending. One of the best benefits of the report is that the authors try to put huge numbers like the debt in perspective.
“Such large sums are difficult to conceptualize properly,” said the student authors in their report.
“If the federal government spent its yearly revenues exclusively on debt reduction and ceased all of its operations, it would take three of four years to pay down the debt. Or, the government could pay down the debt in one blow if it simply took more than $52,000 from every person living in the U.S., including children, the elderly, and the unemployed. If this one-time ‘debt reduction fee’ were levied only on those in the workforce, the cost would be over $106,000 per person,” warned the report.
It also revealed how desperate American families have struggled during the recession that struck at the end of the Bush administration and has lasted through Obama’s two terms: food stamp participation has surged 77 percent and funding more than doubled to $71.8 billion.
Harvard said that from the beginning of the recession in late 2007, average monthly participation in the program jumped to historic levels and an annual bill of $30.4 billion.
The news isn’t much better on the Social Security front: “Without reform, Social Security beneficiaries will face a 23 percent benefit cut in 2033.
Here’s the real story on Obammercare: