Interesting Frontline last night

[sheehs1]

I watched it in it's entirety. Great overview of the last 14 years of Easy Money. Hit points, while I had known, had not totally sunk in. Such as what the banks and corporations did with all that easy money, which was to either turn around and invest it or bought back their own stock to escalate their stock prices, not using it to add material value to their companies or institutions. I think some of us can agree we have all had thoughts that the stock market felt like "a casino" (as was mentioned at least twice in this link) the last many years. Also that after the 2008 Financial Crisis, the shadow bank system remains unregulated. Many interesting points to continue to ponder. It will also be interesting to see what Powell does March 22nd with interest rates.

 

[Koolau]

As does the rest of the world. People still want the USD and still want to get here and take great personal risks to get into the country.



We (the US) have, by far, the most robust and self-sufficient economy and vast natural resources. We also have a relatively free society and a very productive workforce and a culture of innovation that is the envy of most others. We also have nukes to dissuade, and vast geographical barriers separating us from, those that seek to erode those advantages, and unfortunately/fortunately, that adds more stability. Whatever may happen at the macro level, we are likely to remain on top for the foreseeable future.


I'd call myself a skeptical optimist -I come across pessimistic sounding often because of my questioning nature but there has been doom and gloom preached since the beginning of time but the human condition globally continues to improve over time.


Now to go watch the video in the OP's post.....

Well, if you're the "skeptical optimist" I guess I'm the "perpetually glass-half-empty" guy.

I can't lay my hands on the figures, but I saw statistics recently that indicated national debt of something like $90K for every man, woman and child in the country. Also, IIRC, that translated to something like almost $300K for every US tax payer. If you can stay skeptically optimistic in light of those statistics, my hat is off to you (and don't spill the rest of my water, please.)

 

[Markola]

I saw the show when it aired. The bill for 14 years of “easy money” has come due.

 

[Koolau]

I saw the show when it aired. The bill for 14 years of “easy money” has come due.

Yep, and guess who gets to pay the bill.? The "RICH" (you know, us here on the FIRE Forum.) YMMV

 

[Markola]

^^^^^ And everyone else with diluted, debased dollars.

 

[Koolau]

^^^^^ And everyone else with diluted, debased dollars.

I wonder if we'll simply divide the denomination by 100 and call them "new Dollars" like the French did to the Frank ca 1960.

 

[MichaelB]

If y’all don’t want those diluted debased dollars I’m happy to take them off your hands

 

[Markola]

^^^^ I will sell you all I have at 2007 real values!

 

[Earl E Retyre]

Just watched this and learned a ton! Thanks for posting. I enjoyed watching it.

 

[SecondCor521]

Quite similar to "Inside Job", which I watched the other day and also enjoyed.

 

[MichaelB]

^^^^ I will sell you all I have at 2007 real values!

And I’ll take 2007 nominal invested in a simple 60/40 portfolio.

 

[frayne]

Watched the movie "Margin Call" last night, some great acting by Spacey and others but the ending when Jeremy Irons talks about money is rather poignant and somewhat applicable to current events. Here's the six minute clip if anyone cares to watch it, skip to 3:35 for the it's just money part, caution NSFW language. The set up, Spacey's team has just dumped a ton of worthless MBS (mortgage backed securities) onto unsuspecting clients causing a major financial crisis.

 

[Rianne]

Great movie. Jeremy Irons is the perfect villain who makes cheating and ruining lives ok. It makes me think of the talking heads on CNBC. Do we listen to them like they are wise men of the financial world?

 

[aja8888]

Great movie. Jeremy Irons is the perfect villain who makes cheating and ruining lives ok. It makes me think of the talking heads on CNBC. Do we listen to them like they are wise men of the financial world?

CNBC? It's all entertainment and a side show.

I had a coworker years ago that was asked to appear and talk about the Clean Air Act amendments and his talk was pre-scripted by CNBC. Nothing on his point of view as he was the "expert" to show off. Sickening.

 

[Rianne]

CNBC? It's all entertainment and a side show.

I had a coworker years ago that was asked to appear and talk about the Clean Air Act amendments and his talk was pre-scripted by CNBC. Nothing on his point of view as he was the "expert" to show off. Sickening.

I had suspicions the network heads controlled the narrative and opinions. I appreciate the first-hand knowledge that is true. Now I wonder what drives the network heads to the narrative they control. Lobbyists I assume, whatever their motive. Elon Musk was the guru of intellect and turned into a rich buffoon. Now we're moving into the era of AI. I'm glad I'm old.

 

[Jerry1]

I learned a lot about how scripted the media is when something happened at work and the local paper wanted a comment from the CEO. It all looked like quoted verbatim comments in the paper but in reality, it was all composed with input from various department heads and filtered through our PR area. I’m sure the CEO read it and signed off on it, but he spoke none of it in actuality.

 

[GenXguy]

Just watched this and learned a ton! Thanks for posting. I enjoyed watching it.

I haven't watched it, but just from the comments, I gather it would be more on the depressing side and less on the enjoyable side.

 

[Music Lover]

I had suspicions the network heads controlled the narrative and opinions. I appreciate the first-hand knowledge that is true. Now I wonder what drives the network heads to the narrative they control. Lobbyists I assume, whatever their motive. Elon Musk was the guru of intellect and turned into a rich buffoon. Now we're moving into the era of AI. I'm glad I'm old.

Nothing about Musk is any different except for how he is portrayed in the media. It was pretty easy for them to convince people that he was evil or a buffoon.

 

[Koolau]

^^^^ I will sell you all I have at 2007 real values!

WHAT real value?? That green cloth was worth about 4 cents back then IIRC.

Returning you now...

 

[Rianne]

Nothing about Musk is any different except for how he is portrayed in the media. It was pretty easy for them to convince people that he was evil or a buffoon.

Here's my issue with Musk. He created an electric car company to protect the environment yet backed bitcoin (Dogecoin) which is very bad for the environment. Also, the media didn't go on SNL, Musk did and appeared as a buffoon to me. Have you seen the episode of SNL where Musk was the host?

I saw Musk on CSPAN a few years back talking to members of Congress about the dangers of AI. He said, my memory of what he said, AI is the most challenging danger to the future. He is so brilliant and that opinion mattered. Then, IMO, he starts acting ridiculous on Twitter. People follow Musk like he's a guru. The media doesn't type his quotes on Twitter. He does.

https://www.smithsonianmag.com/smar...erently, Bitcoin mining,,—a 126-fold increase.

"Using the social cost of carbon, a common metric to gauge the financial damages caused by the greenhouse gas, the researchers calculated the climate cost of Bitcoin. On average, they found that for each dollar in bitcoin value produced, the process resulted in 35 cents in global climate damages—or 35 percent of its market value. In comparison, beef’s climate damages clocked in at 33 percent of its market value, and damages from gasoline produced from crude oil were at 41 percent."

 

[Koolau]

Here's my issue with Musk. He created an electric car company to protect the environment yet backed bitcoin (Dogecoin) which is very bad for the environment. Also, the media didn't go on SNL, Musk did and appeared as a buffoon to me. Have you seen the episode of SNL where Musk was the host?

I saw Musk on CSPAN a few years back talking to members of Congress about the dangers of AI. He said, my memory of what he said, AI is the most challenging danger to the future. He is so brilliant and that opinion mattered. Then, IMO, he starts acting ridiculous on Twitter. People follow Musk like he's a guru. The media doesn't type his quotes on Twitter. He does.

https://www.smithsonianmag.com/smar...erently, Bitcoin mining,,—a 126-fold increase.

"Using the social cost of carbon, a common metric to gauge the financial damages caused by the greenhouse gas, the researchers calculated the climate cost of Bitcoin. On average, they found that for each dollar in bitcoin value produced, the process resulted in 35 cents in global climate damages—or 35 percent of its market value. In comparison, beef’s climate damages clocked in at 33 percent of its market value, and damages from gasoline produced from crude oil were at 41 percent."

Look at any of the "pillars of industry", "genius inventors", "moguls of history", etc. and you find (wait for it) human beings. All humans are flawed and have blind spots. Think about Tesla (the man, not the car) who was a true genius but likely had several screws loose. Edison invented more stuff than anyone but was a ruthless business man (and arguably underpaid his w*rkers.)

Personally, even recognizing the flaws, I think we're better off with people like Musk who dare to dream and to do. That they are far from perfect makes them more "interesting" - like the rest of us.

 

[Skitso999]

I watched it today. Makes me want to move almost everything out of equity MFs and go into Treasuries or CDs. Scary stuff, we have idiots running our financial system.

I was a bit concerned about how honestly this is being presented. Frontline usually does a good job of reporting and I have watched many of their shows but it is on PBS and a high percentage of video was from CNN. I don't trust any of the MSM but IMO some are less toxic than others, those 2 are not on that list. I have watched CNBC mostly for 15 years and while they don't interject politics into their reporting they have some guests where it comes up but all in all I view them as fairly balanced. CNBC doesn't have a left wing agenda like Bloomberg or right wing like Fox Business. It was a good show and I intend to rewatch it.

I found that it was pretty negative. It's not portraying tons of hope for the future. I need to watch it again. I considered it pretty biased toward the left!

 

[JJpop]

I watched it and felt the same way. However, I don’t think there’s anyplace to hide. Maybe gold. But, buying CDs and Treasuries seems counterintuitive given that Treasuries are the vehicle the Fed is using to orchestrate this mess. As was said in the documentary, eventually the bill is going to come due. The question is whether or not there is a strategy to protect oneself from the worst of it when it does.

If we get to the point where treasuries and CD’s are not honored then it is over.
I think there is a bit too much doomsday going on and I am someone who is almost 100 pct fixed income.

 

[frayne]

If we get to the point where treasuries and CD’s are not honored then it is over.
I think there is a bit too much doomsday going on and I am someone who is almost 100 pct fixed income.

As long as the US dollar is the world's reserve currency and other countries are willing to buy our debt and keep investing in the USA, we're good !

 

[Markola]

For many decades, in a world of rapidly inflating currencies, including ours, the dollar is the slowest-melting ice cube. Thus, yes, it remains for now a relatively attractive place to stash value for people around the world. We should hope that continues.