Re: Europe feels the punch of a slowdown

On Jun 29, 1:15 pm, BuffettHater <BuffettHa...@xxxxxxxxx> wrote:
Germany is a socialist nation which is why i love german girls in
LederHossen, Acht Yahh.

Seems every story we were fed . . . .  decoupling,  cheaper oil when
iran online and in full production,  the china 'miracle',  was either
an
outright lie or fabrication, take your pick.

Think back to last year.   China would boom till just before the
olympics?
China is down some 60^%!!!!!   It started tanking in Jan08 right after
the
other buffy pulled his profits out.

I wonder what causes this (aside from the obvious) ?

Is it just sooooooooooooo much money chasing an angle or trade that
it causes markets to flip,  or, misinformation fed for our demise?

I have made a shitload of profits on long oil, short stocks, but even
i
am starting to worry about a pan global recession sinking into
depression
on the basis of runaway inflation.


the dow dropped a measly 3% on friday, 385 points... it is at June
2006 levels now. the real story is that hidden inflation, 12 to 15%
per year means that the average 401K plan is off by 25 to 30% in the
last two years.

so that with such inflation of the currency and the stock market
staying even or even rising say 5% a year, there is a significant net
loss of buying power.. thats just in the last two years..... will it
'rise' again? oh yes.... will it rise iin terms of inflation adjusted
dollars? Not a chance in hell if you use the real inflation numbers
not the govts bogus cpi numbers.


This is happening in the face of massive job losses and downsizing of
US industry as govt employment keeps bloating... no way in hell to pay
for that...nor many of the civil service retirements now running at
150k a year for many cops and firemen (at age 51 no less)... and a
quarter of a million a year for chiefs and many govt officials.

that simply is not flying...many cities are filing bankrupcy,
Vallejo calif for instance... and this mess has not even begun to
roll.


With a senior citizen voting block of close to 100 million people, out
of a net 350 million population, and maybe 200, million eligible to
vote.. social security fraud by means of using a distored CPI will
cease as the seniors begin to starve... there will be no tax base to
afford the increases though, without cutting govt bloat by about
80%...

the net effect will be a collapsed US economy with no easy recovery
since huge parts of the economic engine, manufacturing have been moved
to china.


My advice? brace yourself, get out of the dollar.. and taxable assets
such as realestate as a rule (exceptions of course)... a govt gone
south with no way to pay its own retirements has historically taxed
its people to absolute ruins... in order to be taxed to ruins you have
to have an asset that can be seized if you cant pay.

Is it true that 'people must have a place to live' according to some
finance guru's claiming realestate is a good invesment? well it is
true..

.but each family doesnt have to live in a big house... we are seeing 2
or 3 families living in a single home now... singles in vans or
cars.. soon as the 80 million boomers start dying off, there will be
an absolute glut of realestate... prices will go down on that as taxes
rise... not a good investment imo... and not affordable in an
unemployed nation.

Who will profit... if you like being a ferengi and enjoy that, and are
sharp as hell... maybe the top 1% of investors and insiders will do
very well in this turmoil... the rest will be hosed.

Recovery from such a mess, takes a generation or two.

Phil Scott















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