<p>So be it… We are Japan with this current plan, with the average investor having less then 50k in the market,l think even much less, a 20% haircut is not that big of a deal…supporting the market so people like me ,and many of you, can get a bit wealthier is not worth the pain low interest rates are doing to normal savers</p>
<p>20% haircut?</p>
<p>That’s it…</p>
<p>I think more…</p>
<p>Perhaps, but my point is the average person in the country has little invested in the market,so we need to find a way for them to get ahead…propping up stock prices is onlymhelping the dstarks and docts of the world. ;)</p>
<p>Not helping me…I have a very small position in stocks…</p>
<p>I would prefer to help the middle class…</p>
<p>So qdogpa…what is your plan?</p>
<p>What do you want the government to do?</p>
<p>Be as specific as possible.</p>
<p>First, we need a housing plan, one that would allow current owners in financial straits,to stay in their homes…refinance into longer terms,perhaps…won’t work in all cases,but will help</p>
<p>Second, jobs…we need to find a way to slow down the export of jobs ,we reward companies and their executives to do this,so we investors can see higher stock prices…vicious cycle</p>
<p>Third, have a simple healthcare saftey net for all CITIZENS ,not all encompassing,but basic care…those who have insurance can keep their own…</p>
<p>Ok…needs a little tweaking…I agree with you more than i thought I would. :)</p>
<p>I would love for the government to get out of the markets…</p>
<p>Except…we would implode.</p>
<p>I don’t know how many jobs would be created if the Dow was 6,600 and long term rates were 6 percent or more…</p>
<p>Probably right about implode,lol…but the FED is just pushing the implosion to my children, and given the weak job market and starting salaries, that could turn out to be the mother of all implosions for that generation</p>
<p>I’m not sure…</p>
<p>We might just meander for 20 years.</p>
<p>You might be right.</p>
<p>Whitney Tilson on earlier, now coming up Meredith Whitney… Another hack…</p>
<p>Absolutely…she made me money on my muni call…</p>
<p>I need her to make another call.;)</p>
<p>I would like the government out of the markets as much as possible.</p>
<p>qdog, you confuse me. As to the financial markets, you want no government involvement.
But as to health care and housing, you do want government involvement.</p>
<p>Look, pure and free markets would implode regularly. It is called “creative destruction”, as described by the economist Schumpeter. It would lead to a form of Darwinian Survival of the Fittest, requiring the fittest also to have the ability to suss out fraud and dishonesty on their own. It is also possible that the markets would be so dangerous that few would participate (except perhaps in very extreme bubbles), making the market not such a great place for financing growth or liquidity, let alone a good basis for stable currencies, trust in making bank deposits, or relatively stable economies.
It would be interesting to see what Schumpeter says about speculation- I do not know. I would guess that it is assumed to occur naturally, as long as there are any investors who think they can profit.
Desire for profit is considered the ultimate motivation in this model.</p>
<p>Under current circumstances, part of being a successful investor is the ability read the Fed’s signals.
And we have also learned that while the government is supposed to be preventing fraud and dishonesty, it is not effective in the least, ironically.
Nor are the regulators able to keep up with the sophistication of financiers and investors or the complexity of the worldwide interlinked markets.</p>
<p>We are in a “mixed model” system. But there are different types of mixed models.</p>
<p>The other issue now is that information and price can be disseminated instantly but not universally. We are now seeing with this power that price can be easily manipulated with the technologically driven new abilities to amass large amounts of money and securities.
Computer and software power are now a defining advantage, and it is an on-going race. I am not saying computers make trading successfully at all, but there are new factors to consider when evaluating price and the markets. Out regulators are not exactly at the lead of this arms race…</p>
<p>Prices and information have never been disseminated universally at the same time.</p>
<p>Other than that…I love your post, performersmom.</p>
<p>is it “investing” with the Fed implicitly backing the markets? Or a Ponzi Scheme ? and the latter 2 points i made were NOT to have full government involvement,but they are not dis-similar to what the government is trying to do…and while i am perched on my soapbox 
i think Ceo and upper management salaries need to be capped or not tied to stock price…this is a new belief i have come to,after always saying let free markets dictate salaries…problem is way too much compensation is being paid to such a small number of people,</p>
<p>" i think Ceo and upper management salaries need to be capped or not tied to stock price…this is a new belief i have come to,after always saying let free markets dictate salaries…problem is way too much compensation is being paid to such a small number of people,"</p>
<p>Changing your beliefs because of information is a sign of intelligence.
I am happy to read this. :)</p>
<p>It doesn’t get any better than listening to Howard Davidowitz as a talking head.</p>
<p>What i wasn’t intelligent before i changed my beliefs? :)</p>
<p>By the way, Davidowitz has said from the time that Ron Johnson took over JCP that it would be a disaster - a view he still holds so I guess he is on the other side of the fence from Tilson.</p>
<p>Tilson added to his holdings in JCP today at 28+. Oh well…</p>
<p>Qdogpa…lol.</p>