How screwed are we?

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  • #26
Astronuc
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Ford to sell Jaguar, Land Rover for $2.3 billion
New owner Tata envisions no big changes in employment levels

After decades of losses at Jaguar and a history of reliability issues at Land Rover, Dearborn, Mich.-based Ford (F:Ford Motor Company, Last: 5.87 -0.13 -2.17%) announced that it will sell the two brands operations to India's Tata Motors Ltd. (TTM:tata mtrs ltd Last: 16.16 -1.20 -6.91%) for $2.3 billion and will contribute as much as $600 million to the unit's pension plan.
Back in Jan 04, Ford was about $17/share, and it's been in slow decline over that last 4 years. It maybe a good bargain at less than $6/share.

Back in 1999 it was over $35/share!
 
  • #27
russ_watters
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The Fed's rate cuts are penalizing those of us who have saved a nest-egg and are trying to keep a reasonable portion of our savings liquid. It is impossible to find a reasonable interest rate on money-market accounts these days, because the Fed is keeping money so cheap.
I don't see how that is a penalty. There are lots of places to keep your money and even when interest rates our high, a money market is not generally a good place to keep more than a few months' supply.

If you could say that low interest rates penalize people who invest in money markets, then I could say high interest rates penalize home buyers and people who invest in the stock market.
The Fed is propping up speculators while stabbing conservative savers like me in the neck.
I'm not sure I agree with your definition of "conservative saver". My IRA is in an S&P index fund, which most people would consider a highly conservative investment. A money market barely qualifies as an investment - it's basically just a good savings account.
 
  • #28
turbo
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I have an IRA that is widely diversified, and it is composed entirely of pre-tax 401K roll-overs. It is doing OK for me. I want to stay relatively liquid in case an irresistible hard-asset investment (like a large tract of real-estate) presents itself, but in the meantime, the Fed's constant tinkering is making this strategic liquidity expensive. The Fed is rewarding borrowers, debtors, and investors at the expense of those of us who have been disciplined enough to save. In practical terms, they are eroding my personal wealth to reward the less-principled. The people running our government and directing the Fed are not conservative - they reward risk and debt at the expense of those of us who ARE fiscally conservative.

No matter how much money I made, all through my life I have made it a point to live within my means and save some money from each paycheck. I have not had a loan in many, many years (I had a mortgage on our previous home 'way back and paid it off early because the interest write-off didn't balance the benefits of early repayment). The "American Dream" of home ownership and "improving" life-style has never prompted me to assume debt that I could not easily repay. I paid for our current home with a personal check almost a year before we managed to sell our former home. It freaked out the real-estate agent, and my lawyer told him "Calm down and take the check." Apparently, to him a guy in jeans and a T-shirt with longish hair is supposed to be a debt-ridden wage-monkey. If you are smart and fiscally conservative and work very hard, you can be in the same position, someday. Just hope that the government does not decide to devalue your cash - a back-door theft to support the status quo.
 

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