Financial Balance

[mixin]

Re: Financial Balance

At least a few people get it!! Here's the final paragraph of a 5 page report

Reports Highlight Emergency Preparedness Crisis by Anthony Kimery

?This threat is just as real ? and likely during the next five years ? as was the leadership on Wall Street and in the mortgage lending industry that caused that crisis, which the federal government saw fit to bail out.

What we need is a similar financial commitment to public medical preparedness for the unthinkable ? which could be far more devastating both in terms of the economy and lives,? candidly stated the government public health preparedness official HSToday often talks to on background.

http://www.hstoday.us/content/view/6579/150/1/4/

[Laidback Al]

Re: Financial Balance

there are always some people predicting crisises.

What was different in 2006 ?

The concern is that the warning signs for the current world-wide economic crisis should have been readily apparent in 2006 to decision-makers, politicians, economists, speculators, and investors.

The potential for world-wide economic disruption from a pandemic is clearly understood today by numerous individuals and organizations (including FluTrackers). Yet, there is no evidence that world governments, global leaders, public health officials, etc. are taking the threat seriously enough to implement appropriate measures to protect the just-in-time global economic structure from a pandemic.

The next pandemic, regardless of the CFR, will bring the global economic markets to a standstill. Failure to recognize and prepare for the economic consequences of a pandemic is a failure of leadership. Failure to believe that there will even be a pandemic in the future is simply a sign of ignorance.

[Amish Country]

Re: Financial Balance

http://www.youtube.com/watch?v=LfascZSTU4o

8/28/2006-Ron Paul Advisor Peter Schiff On Kudlow & Company

[gsgs]

Re: Financial Balance

there are always some people predicting crisises.

What was different in 2006 ?

[Laidback Al]

Re: Financial Balance

The signs of the current economic crisis were discussed here at FT almost 2.5 years ago.

If we saw it coming, where were the experts in the financial markets?.......

Not only was the world wide potential economic crisis discussed in this thread in 2006, but the economics effects of the unfetter boom in real estate prices in the US (along with ARMs, interest only loans, etc.) were carefully dissected in 2006 as well. The prognosis at that time was dismal. To read more about the housing issues (as discussed at FluTrackers starting in 2006) see this thread:

http://www.flutrackers.com/forum/showthread.php?t=4322

And now, the forecasts in those posts are coming true.

[sharon sanders]

Re: Financial Balance

The signs of the current economic crisis were discussed here at FT almost 2.5 years ago.

If we saw it coming, where were the experts in the financial markets?.......

[Gnosis]

Re: Financial Balance

Interesting link, Gnosis. International economy issues are beyond my home grown knowledge, but, if foreign companies are buying up US companies, so what?

They are taking the dollars they earned from selling overpriced geegaw to US citizens and reinvesting them in the US economy. They must believe that there still money to be made in the U.S. or else they would take those dollars and invest them in Treasuries and demand high interest rates. Or worse, they would take those dollars and swap them for a different fiat currency (Euros, perhaps?).

Or, and scariest of all, they would take those dollars and cash them in for gold. Then the US dollar and by default, the US economy, would have a real problem. Some posters in this forum believe this is happening even as we post.

The party is about over.....

Fund released its semiannual Global Financial Stability Review, ahead of meetings this weekend in Singapore. The report was full of warnings that the risk of a global financial crash is increasing. This comes hot on the heels of a message from HSBC, one of the world's largest investment banks, that it has put the United States on recession alert.
So what is behind all of the doom and gloom? Chalk it up to the rising global imbalances in trade and foreign reserves that are boosting the possibility that a cyclical global slowdown could melt down into something worse. Not surprisingly, the U.S. economy is the key variable here.

Just look at the U.S. trade deficit, which surged to a record level of $68 billion in July according the Department of Commerce. As the U.S. deficit increases, it depresses the dollar, since more foreign currency is needed to buy all those imports while demand for dollars weakens. The flip side of this is China's record trade surplus, which is flooding that country in foreign currency -- boosting reserves and creating upward pressure on Chinese currency. A rapid depreciation of the dollar could add to inflationary pressures here at home, while inflicting substantial losses on foreign investors' dollar-based investments.

The IMF says that with the world fixated on the U.S. slowdown, not enough attention is being paid to these imbalances. The IMF scheduled multilateral consultation between the U.S., China and Saudi Arabia, to help find an orderly solution to the problem.

The managing director of the IMF, Spaniard Rodrigo de Rato, remains optimistic, however. He sees continued smooth sailing for the world economy, albeit with more ominous clouds on the horizon today than a few years ago. So you can see there continues to be a lot of debate among the smart money about the direction of the world economy. We need to monitor the data and commentary to guide our investment approach through the rest of the year.

[Laidback Al]

Re: Financial Balance

The following link says it all.

http://www.economyincrisis.org/index.asp

Interesting link, Gnosis. International economy issues are beyond my home grown knowledge, but, if foreign companies are buying up US companies, so what?

They are taking the dollars they earned from selling overpriced geegaw to US citizens and reinvesting them in the US economy. They must believe that there still money to be made in the U.S. or else they would take those dollars and invest them in Treasuries and demand high interest rates. Or worse, they would take those dollars and swap them for a different fiat currency (Euros, perhaps?).

Or, and scariest of all, they would take those dollars and cash them in for gold. Then the US dollar and by default, the US economy, would have a real problem. Some posters in this forum believe this is happening even as we post.

[Gnosis]

Re: Financial Balance

The following link says it all.

http://www.economyincrisis.org/index.asp

[Binkerbear]

Re: Financial Balance

And if I fail morally, and become a gun toting self preservationist myself, then I hope the plague will not spare me.

I'm hoping that I will just have to become one of "those" for a short time and, if I survive, then I'll never have to worry about it again.

[4-ABBA]

Re: Financial Balance

The lifeboat is a good analogy - better to try to save the few that can be accommodated than leave all to drown. Remember, many will "drown" before we are able to reach them. Surely though it is better to have some lifeboats than none at all. This is the dilemma that will face every conscientious health professional who stays at his post. So why not me too? Why should I have the luxury of running off into hiding and isolation?

It is always a problem when considering acts of mercy: what difference will my weak efforts make when the need is so overwhelming? We can too easily make this an excuse for passivity. We must take courage from the thought that although we surely cannot help everyone, we can perhaps help just one person / perhaps one family / perhaps the neighbour on the right, although not the one on the left. It is awful to have to think of turning anyone away, of having to choose who to help. But it must be better to plan to save one extra person than to make no such plan at all. And when we have made provision for one, to then see if we can double up, and so on. We must trust that when the time comes it will be clear who we can help and who we cannot. Someone will receive our help gladly. Someone else will refuse it and push us away. But at least let's do what we can. That is the way I am thinking at the moment.

My only fear is that when it comes to the point of crisis I may not prove to be the kind of person I want to be. I am not confident of how I will react under pressure and when full of fear. One thing I am sure of is that if all that are left are selfish gun toting self preservationists, it will be a horrible world which I would not want to be part of. And if I fail morally, and become a gun toting self preservationist myself, then I hope the plague will not spare me.

Kernel Klink...this post is most beautiful in what you have shared. It is people--and hearts--like yours that make me thankful I am part of the human species.

We NEED to hear more of your wisdom!!

4-ABBA

[sharon sanders]

Re: Financial Balance

Here is one:


http://www.flutrackers.com/forum/showthread.php?t=361

[LeaSoul]

Re: Financial Balance

Bump this.
And please forgive the newbie, this one is interesting and should be read a couple of times.
So ..... another dumb newbie question? Can someone direct me to a link, preferably in FT, that gives suggestions on what to do now with our money that we have in the bank? We aren't rich, we aren't poor, we have just "saved", as suggested by the experts, for our retirement.

[sharon sanders]

Re: Financial Balance

NEW YORK -- Warren Buffett's contribution of about $1.5 billion a year to the Bill & Melinda Gates Foundation will be used to seek cures for the world's worst diseases and improve American education, Bill Gates said Monday. "There is no reason we can't cure the top 20 diseases," Gates said while appearing with Buffett during a donation ceremony at the New York Public Library. The Buffett and Gates families, as well as onlookers, were beaming as the so-called Oracle of Omaha officially made his benevolence a reality. "There is more than one way to get to heaven, but this is a great way," said Buffett. He presented the biggest gift to Gates, and $1 billion donations to his own foundation and the foundations run by each of his three children. "It's easy to sign. I just signed, "Dad,'" Buffett joked while handing one of the donation documents, a stock transfer letter, to his daughter, Susie Buffett. Buffett said he had made some suggestions about how to use the money. But "I think their judgment above the ground is going to be a lot better than mine 6 feet below the ground," he said at a later appearance.

Buffett said his children have known all along that much of their family's wealth would be given back to society. "They consider themselves lucky. They don't consider themselves quite as lucky as if they had a father with a different view."

In a letter dated Monday, Buffett had informed Bill and Melinda Gates that the first donation of Berkshire Hathaway Inc. stock would go to the foundation next month.

The foundation, which has assets of $30.6 billion, spends money on world health, poverty and increasing access to technology in developing countries. In the United States, it focuses on education and technology in public libraries.

The money from Buffett, who is 75 but considered strong and healthy, comes with a significant catch. The letter says Buffett wants all his money to be distributed in the year it is donated, not added to the foundation's assets for future giving. The foundation gave away $1.36 billion in 2005, so the Buffett commitment would effectively double its spending.

Buffett had said he would give away 12,050,000 Class B shares of Berkshire Hathaway stock to the five foundations. The shares fell $22.01, or 0.7 percent, to $3,049 in afternoon trading on the New York Stock Exchange.

The gifts would be worth nearly $37 billion, which represents the bulk of the $44 billion that Buffet's stock holdings are worth today. Five-sixths of the shares will be earmarked for the Gates Foundation.

In his letter to the Gates Foundation, Buffett said he admired the foundation and wanted to extend its "future capabilities." Until now, all the money given away by the Gates Foundation has come from the couple.

In a statement over the weekend, Bill and Melinda Gates spoke of their relationship with Buffett over the past 15 years and his influence on their philanthropy.

"Warren has not only an amazing intellect but also a strong sense of justice. Warren's wisdom will help us do a better job and make it more fun at the same time," they said. The couple said they were "awed" by Buffett's decision.

The Buffett pledge also requires that Bill and Melinda Gates remain alive and active in the policy-setting and administration of the foundation. Buffett plans to give each foundation 5 percent of his total pledge each year in July.

Bill Gates, the world's richest man, announced earlier this month that he would be stepping back from his day-to-day responsibilities at Microsoft Corp. in July 2008 so he can spend more time on the Seattle-based foundation. The foundation followed his announcement by saying Melinda Gates would also be taking a more active role in their philanthropic work.

Buffett, the world's second-richest man, said in an interview with Fortune magazine that the timing of the two announcements -- one week apart -- was just "happenstance."

Buffett's gift is "really significant," not just for its size but for its potential to encourage other giving, said Diana Aviv, president and CEO of Independent Sector, a nonprofit coalition of about 550 charities, foundations and corporate giving programs that includes The Gates Foundation.

"I'm sure there are lots of young, wealthy individuals who have made their fortunes and who are watching this very carefully," she said. "These business leaders are icons."

* __

Associated Press Writer Donna Gordon Blankinship in Seattle contributed to this report.

* __

On the Net:

Bill & Melinda Gates: http://www.gatesfoundation.org



Some people are seeing the light.

[sharon sanders]

Re: Financial Balance

Foreclosures May Jump As ARMs Reset
By J.W. ELPHINSTONE (AP Business Writer)
From Associated Press
June 19, 2006 6:35 PM EDT
NEW YORK - In 2003, Anita Britten refinanced her two-story brick cottage in Lithonia, Ga. using a hybrid adjustable rate mortgage, or ARM. Her lender reassured her that she could refinance out of the riskier loan into a traditional one when her interest rate started to reset.
Three years later, Britten can't get a new mortgage and her monthly payment has jumped by a third in six months. She can't afford her payments and may face foreclosure if her financial situation doesn't change.
As more ARMs adjust upward and housing prices begin to dip, many Americans like Britten can't refinance and are finding themselves trapped in too-high monthly payments. For those who can't make their payments, foreclosure - the legal process by which the lender reposseses the house because the owner has defaulted on payments - is the only way out.

snip


This year, more than $300 billion worth of hybrid ARMs will readjust for the first time. That number will jump to approximately $1 trillion in 2007, according to the MBA. Monthly payments will leap too, many beyond what homeowners can afford.
For example, Britten's monthly payment jumped from $1,079 to $1,340 at the beginning of this year. It rose again on June 1 by another $104 and is scheduled to increase again in December. Britten, who is also paying off student loans, went to a credit counseling service to help her avoid foreclosure.
"I've gotten rid of all my credit cards and I'm not supposed to refinance for another year," she said. "All I can do is tread water right now."
"ARMs are a ticking time bomb," said Brad Geisen, president and chief executive of property tracker Foreclosure.com. "Through 2006 and 2007, I'm pretty sure we'll see a high volume of foreclosures."

snip

http://enews.earthlink.net/article/top?guid=20060619/44962140_3421_1334520060619-1045900028