Sunday, December 27, 2015

Sam Zell Advises Anyone with Ears

With $2.7 trillion and rising at negative interest rates, what is going on?  Better to lose 3% within a couple of years guaranteed than 30-80%.

Mish summarizes a Sam Zell interview, a must read...

If you are breathing now, and think you will ever "retire (based on the idea wealth is defined as accumulation)" then good luck.  Better:
Asked when she plans to retire, Christine Acosta’s answer is emphatic. Never. The Florida resident restarted her career in her fifties after getting a bachelors degree, setting up a business in Tampa called Pedal Power Promoters that advocates for cyclists and provides valet parking for bikes at big events
The reason is the hegemon has no choice but to cut back on promises and accelerate confiscation:
US population in 1971 – 208 million
Total credit card debt 1971 – $8.5 billion ($41 per capita)
Total auto loan debt 1971 – $40.5 billion ($195 per capita)
US population in 2015 – 320 million
Total credit card debt 2015 – $890 billion ($2,781 per capita)
Total auto loan debt 2015 – $1.03 trillion ($3,219 per capita)
Here is the entire game, played by one company, in a nutshell, to help wrap your brain around it...
It borrowed the difference, of course, swelling its net debt load from $14 billion at the end of 2009 to $44 billion at present. And that’s exactly the modus operandi of our entire present regime of Bubble Finance.
Feel free to forward this by email to three of your friends.


Nick said...

Excellently pithy, thanks John!!