iCharts Discussions

[ajayhkaul]

[ajayhkaul]

Baby Boomers crisis ( a lesson in demography , so read it slowly !)

I know some will hate me for this but check this out :

Another reason why they cannot let the market crash and the bull run must continue( cant say how long, though):

Over the next 20 years approximately 10,000 Baby Boomers will be retiring every single day in the US.

Get this ?

Baby boomers were all those born between 1947 and 1965( approx) in the US and it seems about 20% of worlds population is in this range ( ok ok ... same will apply to any country where there is a large population aging /retiring AND a failing economy)

A lot of them are going to be blindsided by empty pension funds and broken promises.

A retirement crisis of unprecedented magnitude, and there is not much hope in sight.

And if there is a major stock market crash, things are going to be much, much worse.

Most pension funds and retirement plans are heavily invested in the stock market. If we were to see a major financial crisis like we saw back in 2008 it would be absolutely devastating. Millions of Americans could see their retirement plans wiped out in short order.

"...A gigantic tsunami of unfunded pension obligations is coming. A lot of state and local governments are going to go broke. A lot of promises are going to be broken.

According to Northwestern University Professor John Rauh, the latest estimate of the total amount of unfunded pension and healthcare obligations for state and local governments across the United States is 4.4 trillion dollars. America is continually becoming a poorer nation and all of that money is simply not going to magically materialize somehow. So where is that 4.4 trillion dollars going to come from? Well, either pension benefits are going to have to be cut a lot more all over America or taxes will need to be raised dramatically. Either way, feel the pain of these broken promises.

There simply is not enough money out there to keep all of the pension commitments that have been made. Something has got to give. In the end, millions of elderly Americans will likely be plunged into poverty as pensions disappear.


If you hope to retire any time soon, you better plan on being able to take care of yourself....."

You see where this is going ?

So who wants to fight the FED?

Can you hear the printing press ? Its here : http://www.freesound.org/browse/tags/printing-press/

DEMOGRAPHY:

The elderly are a drag on the economy? How did they manage in ancient times as gatherer/hunters? As they started to run out of food , the elders would eat last and feed the young first. When it was time to look for fresh pastures/food , the elderly and the sick were left behind..... to die.

Baby boomers must die ? Unspoken part of the k-cycle?

'money is like manure , its useless if it is not used to grow young things' -- wonder who said that ?

Health care costs are going up incl in India and companies are cutting back on medical expenses :
http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/india-inc-cuts-down-on-employees-medical-reimbursements-as-healthcare-costs-rise/articleshow/12241



BTW : have we forgotten credit card debt ? wonder how that is going with the americans....

[rk_a2003]

"So where is that 4.4 trillion dollars going to come from? Well, either pension benefits are going to have to be cut a lot more all over America or taxes will need to be raised dramatically. Either way, feel the pain of these broken promises."

You are outdated Mr Ajay! We need not break our promise.We can as well print or even click them too. We are America( There is a whole world for us to rob)------FED

I received a FED response for Ajaykaul post and posting the same - RK

Even the credit card crisis must have been transfered on to the shoulders of the world citizens in a stealthy manner.... Wiki leaks... any help?

[rk_a2003]

No need to fear about sudden collapse etc….it won’t suit the grand game plan…Yes there could be serious efforts like shaking out the weak bulls (like the 5180 visit few days’ back….).Make hay while sunshine’s!.

By saying this I am not shedding the utter bearish view of the world economy. Unfortunately no sign of the revival in that sphere( No need to bother about that for the time being; any way you will be compelled to know about that at a later stage.).

For some time market may follow technicals very obediently….how long…. no one knew.Early warnings..... MMM may strive to detect them.

[ajayhkaul]

We are FED-up !

[psalm]

[ajayhkaul]

[vinay28]

I am FED up of seeing well-FED guys cribbing. Stay hungry and make money!

[ajayhkaul]

[vinay28]

provided you have identified the milking cows!

[mrchan09]

Source: trading advantage dot com


Cheeseburgers, cigars, whiskey and a sedentary lifestyle for all! Or at least of course for the banksters. Today’s announcement by the FOMC: No changes to anything, not even ZIRP 4evvaaah.

In addition to “no changes necessary” statement by the Fed today, we learned that that
Fed also green lighted 15 of the 19 major banks to continue their freewheeling ways; there’s no need for them to hop on the financial treadmill or go on a strict diet of realistic valuations.

Why would you choose a heart-healthy lifestyle if your “stress test” was rigged. What the banks want, the banks get. It’s just a matter of time. The situation is similar to the “star athlete” at a major University with learning disabilities: he’s as dumb as a box of
rocks, passes his own “stress tests” (history) but somehow can’t read a Dr. Seuss book. Yes folks, his exams are rigged because of his athletic ability.

Before the “shocking” news that JPM and other banks passed Tax-Chetin-Timmy’s stress tests, there certainly was some suspicion in the market as to why the market was rallying long before the FOMC announcement.

The market gapped higher and slowly rallied all morning on no real news. It’s not like the FOMC announcement held any more mystery or suspense than a Communist election. The cautious hopium from the inflated jobs numbers plus the slightly better than expected retail sales data were already factored into the market.

The market then EXPLODED late in the day when JP Morgan announced a $15 billion stock buyback and a 5 cent dividend increase because it seemingly had passed the stress test. Of course the official results weren’t supposed to be released until Thursday. But somehow JP Morgan had gotten the test results early from Dr. Fed.

The suspicion was over. At that point we know WHO was buying. After all, the folks on the JPM trading desk knew what was coming and bought all day long. If Doctor Fed was a psychiatrist, the lunatics were officially running the asylum.

Question: Will the 5 cent dividend increase come with a mandatory “thank you” to MF Global customers? After all, JPM was the banker for MF Global and its so-called segregated funds before $1.5 billion “vaporized.” The $1.5 billion “vaporized” inside JPM and then JP Morgan finds “extra” dividend money? Nothing wrong there, oh no…just sayin’.

Why would anyone be surprised that JP Morgan or any of the other 14 banks passed the test? After all, it is a bank being tested by the Fed. The same Fed whose inherent interest has been to not only defend, but prop up the banksters. What’s more, even if the worst case economic scenario occurred and the failure banks couldn’t cover their capital ratios, the Fed would play Dr. Miracle worker and pull a cure out of thin air. At the very least they would get their trusty nurse Congress to pass a law to bail out the banksters…again.

Speaking of bankers and bailouts, one of the biggest recipients of the taxpayer cash was Shitigroup and it couldn’t even pass a rigged test. Wow. Shitigroup must be having a 3rd helping of cheeseburgers, cigars and whiskey.

Trade well and follow the trend, not the so-called “experts.”

Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.

[ajayhkaul]

Bankster ( to rhyme with gangster) is an appropriate word for all the hope (hopium) that all the fiat money will someday , somehow revive the world economy! To stay in power ( and in fear of the public anger) , they will do whatever without caring for the 'side-effects'

[ajayhkaul]

1...From the budget , the FY 13 govt disinvestment target is 30,000 crore.

Also ,

2...FM said in an interview that people save money and buy gold ( which does not help the equity markets!) so they should buy equities( thats why the tax exemption on 50000Rs of equity investment)

3..They are doing other things to make gold expensive to buy/keep.
( annually Indians buy huge quantities of gold , and this is to trick them into buying equities. Imagine a bride or groom garlanded with share certificates !)

I see a stealth link here.They are forcing people to buy equities.


Imagine that the salaried class starts to buy equities instead of gold for tax purposes -- how big is this going to be ?


Who will buy the govt stake in psu's? LIC again? After the ONGC fiasco , the bitter pill will be shoved down public throat ? (eg buy ONGC/sail/mmtc and get tax rebate?)

Also ,more serious , is this an exit strategy for FII? If so , expect the market to rise and rise till all the ducks(public) are in and distribution starts.

Am I imagining things?

Time will tell .... till then view with suspicion all the equity purchase schemes/ideas thrown at the public.

[vinay28]

I don't think tax exemption scheme is for investing in equities of PSUs only. Also, it is valid for the coming year only.

[ajayhkaul]

thats why I am suspicious ...see the disinvestment of 30000cr is for the coming year only. 'limited time offers' they may think will attract more buyers

Yes it is not restricted to PSUs , but how does the public decide which shares to buy ? Media /Hype/banks will catch them


Also , nothing stops them from continuing in the next year/budget.