CDZ What's the Appeal of what Doesn't Work?

[william the wie]

Serious question.

Politically the Blue Wall has been to various degrees constantly (IL) to intermittently (CA) insolvent since the 90s with a resulting loss of tax base since the 90s.

AAII and Value Line have consistently beat the market since the 1960s, the so-called fundamentalist exception to market efficiency.

The above are fairly well known facts yet the trendlines continue in the opposite direction. Any ideas why?

 

[Pogo]

English?

 

[william the wie]

Why the desire for failure?

 

[Pogo]

What the hell is the topic? "Blue wall"? "Value line"? "AAII"? No clue what you're talking about here.

 

[DarkFury]

Replacing cash with IOU's has just about run out. The cities are bleeding off state money and places like IL are turning to the feds.
You are going to have a market crash. The only question is will it be state or national?

 

[william the wie]

The blue Wall are the Democratic states like CA, NY and IL.They are running out of revenues while costs increase.

AAII and Value line do not advertise because they are the most profitable stock advisory newsletters available. But I'm more interested in the general case.

 

[william the wie]

Replacing cash with IOU's has just about run out. The cities are bleeding off state money and places like IL are turning to the feds.
You are going to have a market crash. The only question is will it be state or national?

Chapter 3 bankruptcy is permitted but not required. Money from the Federal government will not pass the house.

 

[DarkFury]

Replacing cash with IOU's has just about run out. The cities are bleeding off state money and places like IL are turning to the feds.
You are going to have a market crash. The only question is will it be state or national?

Chapter 3 bankruptcy is permitted but not required. Money from the Federal government will not pass the house.

They are not going to send money to the P.R. they will just restructure. The states are to close to being in the same spot.
All I figure its going to take is one city to have its bonds go bust.

That will be the first clue the state has no money to cover.

 

[william the wie]

Replacing cash with IOU's has just about run out. The cities are bleeding off state money and places like IL are turning to the feds.
You are going to have a market crash. The only question is will it be state or national?

Chapter 3 bankruptcy is permitted but not required. Money from the Federal government will not pass the house.

They are not going to send money to the P.R. they will just restructure. The states are to close to being in the same spot.
All I figure its going to take is one city to have its bonds go bust.

That will be the first clue the state has no money to cover.

While Chicago is the most likely to go spectacularly bust I wouldn't bet on it against all the other possibilities. Most but not all cities north of the Ohio/Potomac river line and wet of the Mississippi.have serious problems and the possibility of fraud covering up more serious problems cannot be ruled out.

Real estate taxes are a major source of revenue so the strange thing is that NYC and SF have more speculative housing prices now than in 2005, which is one possible trigger. As to how many cities that is true about I do not know housing pricespf interest is not an area of interest for me. I prefer to stick with REITs and Royalty trusts so I don't get 3 AM calls about the light going out in the refrigerator. Also those bubbles are being driven by cash purchases funded with capital flight from China.so no one knows when the capital controls there will trigger a crash.

Another area of concern is that WEC, WTR, AEE and numerous other utility companies are well above their normal PEs. Fracking is coming back online as well and that will cause major problems as well.since this is well below the expected point for that to happen.

 

[DarkFury]

Replacing cash with IOU's has just about run out. The cities are bleeding off state money and places like IL are turning to the feds.
You are going to have a market crash. The only question is will it be state or national?

Chapter 3 bankruptcy is permitted but not required. Money from the Federal government will not pass the house.

They are not going to send money to the P.R. they will just restructure. The states are to close to being in the same spot.
All I figure its going to take is one city to have its bonds go bust.

That will be the first clue the state has no money to cover.

While Chicago is the most likely to go spectacularly bust I wouldn't bet on it against all the other possibilities. Most but not all cities north of the Ohio/Potomac river line and wet of the Mississippi.have serious problems and the possibility of fraud covering up more serious problems cannot be ruled out.

Real estate taxes are a major source of revenue so the strange thing is that NYC and SF have more speculative housing prices now than in 2005, which is one possible trigger. As to how many cities that is true about I do not know housing pricespf interest is not an area of interest for me. I prefer to stick with REITs and Royalty trusts so I don't get 3 AM calls about the light going out in the refrigerator. Also those bubbles are being driven by cash purchases funded with capital flight from China.so no one knows when the capital controls there will trigger a crash.

Another area of concern is that WEC, WTR, AEE and numerous other utility companies are well above their normal PEs. Fracking is coming back online as well and that will cause major problems as well.since this is well below the expected point for that to happen.

Read up on Saint Josephine County Oregon going broke. Now its county but the reasons were the same. I bought a 100,000 dollar home there for 17k. Thieves have stripped the house but who cares? I wanted the lot. Its five acres. I'm letting the volunteer fire department burn it down and I will just wait until the local economy turns and sell 5 lots at 10k a shot. May have to sit on them a while but at 117 dollars a month to hold ALL five who cares?

 

[william the wie]

That's your area not mine.

 

[320 Years of History]

The appeal of that which doesn't work accrues from the ignorance present in not knowing what does work and being willing to try something else in hope that it might work. If additionally there happen to be lots of others who advocate for trying that which doesn't/won't work, that thing's appeal irrationally increases in one's own mind because at that point there becomes a bandwagon of sorts.

 

[william the wie]

The appeal of that which doesn't work accrues from the ignorance present in not knowing what does work and being willing to try something else in hope that it might work. If additionally there happen to be lots of others who advocate for trying that which doesn't/won't work, that thing's appeal irrationally increases in one's own mind because at that point there becomes a bandwagon of sorts.

That's certainly the case with central banking and trade pacts. "We cheat the other guy and pass the savings on to you." is treated as being true as well as funny, which is the height of stupidity.