Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
@dsuttr: Has it ever occurred to you that before something becomes "vindictive" there had to be an initiating event? Maybe we should cast a glance in that direction.
And exactly why is it "vindictive" to invite @FD1000 to comment on the pending major increase in US Government debt? After all, he has no problem telling us how wonderful the present administration (supposedly not "his people", though) is.
not blaming trump? responses from congress on us debt receiving credit rating cut :
"...inept when it comes to creating the conditions or job creation and economic growth.." “out-of-control spending and a lack of leadership in Washington, [the country needs] new leadership in Washington committed to fiscal responsibility, a balanced budget, and job-friendly policies". "...failed leadership on the economy...the only way things will get better is with new leadership..." "...has destroyed the credit rating of the United States through his failed economic policies..."
I posted earlier in regard to how the downgrade may affect mutual funds I might own or be thinking of buying. I don’t do politics - at least on public forums. I hope there’s still room on the board for people like myself who just want to discuss the investing implications of whatever transpires in bond land. I neither blame nor exonerate Trump for the downgrade (and added a disclaimer to that effect). It’s just something I choose not to weigh in on.
It's pretty easy to observe that much of the benefit of Trump's $3.8 trillion tax cut goes to those who are certainly not struggling to get by. @FD1000 blithely dismisses that with the comment that "The rich get richer is old news."
It certainly is, and it's also pretty obvious that @FD1000 has no problem at all with that. After all, he's on the "getting richer" side, isn't he?
If it comes at the expense of government agencies specifically designed to protect the health, safety or financial interests of the average US citizen that's just fine with ol' FD.
Add: @Crash has just posted a report over in the OT section: The Congressional Budget Office (CBO) reports that "The current Bill would redistribute wealth upward, toward those who are already well-heeled."
@hank- You well know that I respect your opinions almost across the board. But I have to note that if a proposed federal budget results in a financial downgrade that "may affect mutual funds I might own or be thinking of buying", the situation, including the complete range of causes and effects, is surely worthy of discussion here.
Thanks @Old_Joe - I have no objection to others discussing the related politics. Since I’d earlier posted in another thread that I wasn’t blaming Trump, just wanted to be clear why I said that.
i don't disagree with gop of 2011 regarding most recent credit downgrade, in particular "...has destroyed the credit rating of the United States through his failed economic policies...".
“i don't disagree with gop of 2011 regarding most recent credit downgrade, in particular "...has destroyed the credit rating of the United States through his failed economic policies...".
Yes - One man in just 4 months in office has completely destroyed the credit rating of a nation that has stood for 248 years, weathered a civil war and emerged victorious from two world wars, survived the great depression, sent men to the moon and back, developed the Space Shuttle, launched Hubble and James Webb, explored Mars, pioneered the technical revolution, has an economy which at $29 trillion GDP is 5 times the size of its nearest competitor Japan and an annual budget in excess of $3 trillion. In just 4 months in office a single man has completely destroyed this nation’s credit rating.
You may be giving Trump too much credit (pun not intended) here. S&P and Fitch had already downgraded the US. Moody's downgrade was just the last of the triumvirate to take note of what had happened over time. Moody's wrote of more than a decade of concerns.
The first downgrade, by S&P, was somewhat forward looking. "S&P’s move followed a contentious debate in Congress over raising the debt ceiling, which many analysts viewed as a sign of dysfunctional governance."
Congress doesn't need Trump to squabble and deadlock.
What you can give Trump more credit for is sowing FUD. This has had cascading effects resulting in countries and foreign investors pulling capital out of the US.
The switch from traditional capital flows [into the US] in uncertain times is because it is the United States that has created a good deal of investor uncertainty and concern in 2025 through the launching of a trade war, fracturing the Western Alliance, and through its threats against Canada, Greenland and Panama. The short-term effects have been a weaker dollar and weaker American stock markets.
A recent analysis by Allianz economists noted that, ordinarily, when yields on Treasuries rise, the U.S. dollar gets stronger as foreign capital pursues those higher yields. However, the dollar weakened as yields rose, in this instance, which "suggests major holders were not only selling Treasuries but also converting the proceeds into currencies – possibly reallocating to European markets."
Looks like an interesting read. Thanks for the link, though I won't be buying it from Amazon.
A decade ago, the world was all abuzz with Piketty and this book. Be advised that it is long, dense, and fairly academic. I read about half of its roughly 600 pages. It's well researched, very interesting and worth the read. But it also seemed somewhat repetitive to me. It's not, but it does go on and on. It's still on my nightstand.
[T]here is little doubt that Mr. Piketty has written the big-think book of the moment. Sped into production in February [2014], “Capital” has jumped onto the New York Times best-seller list. Last week, Amazon notified readers its cavernous cupboards were bare. ... Mr. Piketty is by no means the first intellectual to have attained celebrity. But he may be the first to see his ideas — and his headshot — go viral. ... His book, and its discussion of, say, “The Ups and Downs of Ricardian Equivalence,” could prove as daunting to most readers as Mr. [Christopher] Lasch’s analysis of “the banality of pseudo self-awareness” [The Culture of Narcissism] or Mr. [Alan] Bloom’s charting of the path that led “From Socrates’ Apology to Heidegger’s Rektoratsrede [The Closing of the American Mind].”
Looks like an interesting read. Thanks for the link, though I won't be buying it from Amazon.
A decade ago, the world was all abuzz with Piketty and this book. Be advised that it is long, dense, and fairly academic. I read about half of its roughly 600 pages. It's well researched, very interesting and worth the read. But it also seemed somewhat repetitive to me. It's not, but it does go on and on. It's still on my nightstand.
[T]here is little doubt that Mr. Piketty has written the big-think book of the moment. Sped into production in February [2014], “Capital” has jumped onto the New York Times best-seller list. Last week, Amazon notified readers its cavernous cupboards were bare. ... Mr. Piketty is by no means the first intellectual to have attained celebrity. But he may be the first to see his ideas — and his headshot — go viral. ... His book, and its discussion of, say, “The Ups and Downs of Ricardian Equivalence,” could prove as daunting to most readers as Mr. [Christopher] Lasch’s analysis of “the banality of pseudo self-awareness” [The Culture of Narcissism] or Mr. [Alan] Bloom’s charting of the path that led “From Socrates’ Apology to Heidegger’s Rektoratsrede [The Closing of the American Mind].”
Thanks for the warning. . Sounds like a door stop.
I'll see if my library has it. And maybe I'll just stick to the latest Michael Connelly even if Piketty is only as daunting as Lasch, who I remember as mostly crabby.
BTW, when it comes to the downgrades, I agree that it is Congress that should get most of the credit though the deficit builder is named after Trump. Wandering attention spans will return to Tariff Theatre as third quarter earnings come into view. Tariff Theater is entirely a Trump production.
although trump would happily take credit for the ~200 years of american exceptionalism, and MAGA would grant it to him, i was simply repeating the 'logic' used by the gop during the prior credit downgrade and notably absent this time around. too subtle i guess.
It might make me feel better to fling mud at the other side and enumerate all their shortcomings. But it doesn’t do a damn bit of good for my financial bottom line. Investing is about growing wealth or, minimally, maintaining the purchasing power of your liquid assets. My dollar bills all look the same. All green. Not red colored or blue shaded to indicate under which party’s Administration they were acquired.
Why distract yourself here from focusing on the ways to make money? The words of the old AA prayer, “Grant me the serenity to accept the things I cannot change. The courage to change the things I can. And the wisdom to know the difference” may well apply.
Comments
And exactly why is it "vindictive" to invite @FD1000 to comment on the pending major increase in US Government debt? After all, he has no problem telling us how wonderful the present administration (supposedly not "his people", though) is.
not blaming trump? responses from congress on us debt receiving credit rating cut :
"...inept when it comes to creating the conditions or job creation and economic growth.."
“out-of-control spending and a lack of leadership in Washington, [the country needs] new leadership in Washington committed to fiscal responsibility, a balanced budget, and job-friendly policies".
"...failed leadership on the economy...the only way things will get better is with new leadership..."
"...has destroyed the credit rating of the United States through his failed economic policies..."
gop 2011
I posted earlier in regard to how the downgrade may affect mutual funds I might own or be thinking of buying. I don’t do politics - at least on public forums. I hope there’s still room on the board for people like myself who just want to discuss the investing implications of whatever transpires in bond land. I neither blame nor exonerate Trump for the downgrade (and added a disclaimer to that effect). It’s just something I choose not to weigh in on.
It certainly is, and it's also pretty obvious that @FD1000 has no problem at all with that. After all, he's on the "getting richer" side, isn't he?
If it comes at the expense of government agencies specifically designed to protect the health, safety or financial interests of the average US citizen that's just fine with ol' FD.
Add: @Crash has just posted a report over in the OT section: The Congressional Budget Office (CBO) reports that "The current Bill would redistribute wealth upward, toward those who are already well-heeled."
everyone is doing polite today! will join in....
i don't disagree with gop of 2011 regarding most recent credit downgrade, in particular "...has destroyed the credit rating of the United States through his failed economic policies...".
Yes - One man in just 4 months in office has completely destroyed the credit rating of a nation that has stood for 248 years, weathered a civil war and emerged victorious from two world wars, survived the great depression, sent men to the moon and back, developed the Space Shuttle, launched Hubble and James Webb, explored Mars, pioneered the technical revolution, has an economy which at $29 trillion GDP is 5 times the size of its nearest competitor Japan and an annual budget in excess of $3 trillion. In just 4 months in office a single man has completely destroyed this nation’s credit rating.
Makes perfect sense to me.
The first downgrade, by S&P, was somewhat forward looking. "S&P’s move followed a contentious debate in Congress over raising the debt ceiling, which many analysts viewed as a sign of dysfunctional governance."
Congress doesn't need Trump to squabble and deadlock.
What you can give Trump more credit for is sowing FUD. This has had cascading effects resulting in countries and foreign investors pulling capital out of the US. https://jonathanbaird88-89120.medium.com/the-shift-of-2025-why-capital-is-abandoning-u-s-stocks-for-europe-a706641cbebd Fox Business: https://www.foxbusiness.com/economy/amid-recent-market-turmoil-who-owns-us-treasuries
I'll see if my library has it. And maybe I'll just stick to the latest Michael Connelly even if Piketty is only as daunting as Lasch, who I remember as mostly crabby.
BTW, when it comes to the downgrades, I agree that it is Congress that should get most of the credit though the deficit builder is named after Trump. Wandering attention spans will return to Tariff Theatre as third quarter earnings come into view. Tariff Theater is entirely a Trump production.
although trump would happily take credit for the ~200 years of american exceptionalism, and MAGA would grant it to him, i was simply repeating the 'logic' used by the gop during the prior credit downgrade and notably absent this time around.
too subtle i guess.
It might make me feel better to fling mud at the other side and enumerate all their shortcomings. But it doesn’t do a damn bit of good for my financial bottom line. Investing is about growing wealth or, minimally, maintaining the purchasing power of your liquid assets. My dollar bills all look the same. All green. Not red colored or blue shaded to indicate under which party’s Administration they were acquired.
Why distract yourself here from focusing on the ways to make money? The words of the old AA prayer, “Grant me the serenity to accept the things I cannot change. The courage to change the things I can. And the wisdom to know the difference” may well apply.
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