Documentary on U.S. Debt
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Oct 4, 2008 2:55 am
Came across this documentary as it will be in my area soon and the director was on the radio talking about it.
Watch the trailer if you are so inclinded...looks pretty interesting. Sometimes these documentaries can have an agenda, but this appears to have been reviewed as very non-partisan:
http://www.iousathemovie.com/?topicId=11170Where does this notion of rights of the "average American" come from? Some are doing better, some are doing worse.
In a globalized economy, the ship of freedom - for world citizens - is larger and lifted higher than at any time in history. Meanwhile, some Americans are worse off for borrowing, not investing in their education and skills, not staying competitive. I heard a CFP sitting with O'Reilly last night, saying the average person should rebalance their 401k (now) to 25% equities, because tougher times are coming. My opinion is that a few years ago, there was too much liquidity, and it went to real estate. There was too much money, chasing too few (blue-chip) stocks, in the world. Where will this money go now? The Chinese are sitting on over a trillion in cash - they'll come buy Wal-Mart, and there will be too much money chasing too few blue chips. This film represents the economic dumbing down of America. Instead of wringing our hands, we should take advantage of a rare opportunity to buy stocks for ourselves and our clients. America is in the process of becoming owned by world citizens, and it is neither bad or good. It just is - the price of freedom. The yield on GE is over 5%, INTC is over 3%. If the stock goes neither up nor down, it is a better holding than any (insured) money market - as long as we have an adequate cash reserve already in place. These stocks represent OWNERSHIP. Stocks make about 4x cash over time, 2x bonds. It's a hard world, time to do our job for our clients and not be distracted by a whining documentary and lamentations about the average person's debt, and how that might change the investment world.