Archive for October, 2007

Social Security First Payment to Baby Boomer

Published at October 17, 2007 in Social Security. 0 Comments

The first baby boomer, a woman named Kathleen Casey, who was born on January 1, 1946, will turn 62 in three months. She is suppose to be the first baby boomer who will start to receive Social Security benefits.Coming up behind her are another 80 + million others, almost every one of them counting on getting something from the government.

Pretty scary thought considering the only thing in the Social Security fund or i.o.u’s. There is no money in there. It has been stolen. So the next time you want more government in your lives, remember this… these citizens worked 40 + years contributing to Social Security only to have it robbed.

As for me, I know I will get nothing.

The problem is a mathematical one. When the Social Security system was set up, there were 42 people working for every one who was getting benefits. In 2030, when the boomers are drawing their checks, the ratio will fall to 2 to 1. The system will go broke.

Great Posting on Craigs List

Published at October 3, 2007 in Dating and Wall Street. 0 Comments

I saw this on Craigs list and it a must read!

THIS APPEARED ON CRAIG’S LIST
What am I doing wrong?

Okay, I’m tired of beating around the bush. I’m a beautiful
(spectacularly beautiful) 25 year old girl. I’m articulate and classy.
I’m not from New York. I’m looking to get married to a guy who makes at
least half a million a year. I know how that sounds, but keep in mind
that a million a year is middle class in New York City, so I don’t think
I’m overreaching at all.

Are there any guys who make 500K or more on this board? Any wives? Could
you send me some tips? I dated a business man who makes average around
200 - 250. But that’s where I seem to hit a roadblock. 250,000 won’t get
me to central park west. I know a woman in my yoga class who was married
to an investment banker and lives in Tribeca, and she’s not as pretty as
I am, nor is she a great genius. So what is she doing right? How do I
get to her level?

Here are my questions specifically:

- Where do you single rich men hang out? Give me specifics- bars,
restaurants, gyms

-What are you looking for in a mate? Be honest guys, you won’t hurt my
feelings

-Is there an age range I should be targeting (I’m 25)?

- Why are some of the women living lavish lifestyles on the upper east
side so plain? I’ve seen really ‘plain jane’ boring types who have
nothing to offer married to incredibly wealthy guys. I’ve seen drop dead
gorgeous girls in singles bars in the east village. What’s the story
there?

- Jobs I should look out for? Everyone knows - lawyer, investment
banker, doctor. How much do those guys really make? And where do they
hang out? Where do the hedge fund guys hang out?

- How you decide marriage vs. just a girlfriend? I am looking for
MARRIAGE ONLY

Please hold your insults - I’m putting myself out there in an honest
way. Most beautiful women are superficial; at least I’m being up front
about it. I wouldn’t be searching for these kind of guys if I wasn’t
able to match them - in looks, culture, sophistication, and keeping a
nice home and hearth.

The Answer
Dear Pers:
I read your posting with great interest and have thought meaningfully
about your dilemma. I offer the following analysis of your predicament.
Firstly, I’m not wasting your time, I qualify as a guy who fits your
bill; that is I make more than $500K per year. That said here’s how I
see it.

Your offer, from the prospective of a guy like me, is plain and simple a
cr@ppy business deal. Here’s why. Cutting through all the B.S., what you
suggest is a simple trade: you bring your looks to the party and I bring
my money. Fine, simple. But here’s the rub, your looks will fade and my
money will likely continue into perpetuity…in fact, it is very likely
that my income increases but it is an absolute certainty that you won’t
be getting any more beautiful!

So, in economic terms you are a depreciating asset and I am an earning
asset. Not only are you a depreciating asset, your depreciation
accelerates! Let me explain, you’re 25 now and will likely stay pretty
hot for the next 5 years, but less so each year. Then the fade begins in
earnest. By 35 stick a fork in you!

So in Wall Street terms, we would call you a trading position, not a buy
and hold…hence the rub…marriage. It doesn’t make good business sense
to “buy you” (which is what you’re asking) so I’d rather lease. In case
you think I’m being cruel, I would say the following. If my money were
to go away, so would you, so when your beauty fades I need an out. It’s
as simple as that. So a deal that makes sense is dating, not marriage.

Separately, I was taught early in my career about efficient markets. So,
I wonder why a girl as “articulate, classy and spectacularly beautiful”
as you has been unable to find your sugar daddy. I find it hard to
believe that if you are as gorgeous as you say you are that the $500K
hasn’t found you, if not only for a tryout.

By the way, you could always find a way to make your own money and then
we wouldn’t need to have this difficult conversation.

With all that said, I must say you’re going about it the right way.
Classic “pump and dump.”
I hope this is helpful, and if you want to enter into some sort of lease
Please, let me know.

The Dollar is Sinking

Published at October 3, 2007 in Inflation. 0 Comments

Don’t know how many of you saw this but the dollar hit an all time low against the euro. Gold prices have not been this high in over 25 years, and the dollar has never bought so little oil.

For this we have the Fed to thank for the latest cuts in rates. Banks will be able to access lower lending rates but I find it hard to believe that these lower rates will be passed on to the consumer. The banks know the consumer is in trouble and hence will not extend the easy credit.

At the same time with the lowering of the rates the fed has the put the dollar into a tailspin. So at the time when the consumer needs access to credit, the value of his dollars are declining- or another way to put it everything has gotten more expensive.

The best way to define inflation is: too much money chasing too few goods. When the fed lowers rates, all it is doing is creating more money. The fed use to publish M3 ( which shows how many money was in circulation), but no more. The feds have stopped reporting M3 – hoping that the markets won’t notice.

The one benefit that we now have because of a cheap dollar is that our housing looks cheap to foreigners. Miami, New York and Las Vegas might be able to survive the housing rout, but somehow I don’t see foreigners buying up real estate in US cities they have never visited.

Best advise for now: pay down your debts and buy some gold.