Here’s the chart on which I was basing my suspicion that there was impending weakness in the market. Again, I had no idea that hot, steaming Grease would fall into my lap. I never get that lucky. (please ignore the Relative Strength lines on the chart below, because this is a chart of the SPY and the SPX is the reference for calculating Relative Strength, so the deviations from 0 are due to the rebalancing times necessary for the SPY ETF to buy/sell the index.)
See the Blue line labeled Support/Resistance. Remember from a long time ago, I said that Farley said that if you find many factors then that will make the S/R point stronger. Here we see an overnight pop, good volume, buyers coming in and the price holding, and we see the Stochastics hitting the 80% point. All good indicators for strength.
Then see on the 31st, where the convergence of the price move and the moving average was happening. Also we see the stochs starting to fall and the MACD plummeting. All weakness signs.
I was watching that weakness, trying to decide whether to gamble going short, when we broke the Moving Average short and medium term lines (the blue and black wavy lines) with an overnight pop on the 31st. We held the Support/Resistance line for 5 hours, but no buyers came in to move the market back higher, even though on the daily chart it looked like the market was on an UpUpandAway move. Then, we see for the last 2 hours of the day, we broke convincingly that Support/Resistance line, with increasing volume. Definite weakness. Look at yesterday’s comments, I posted a comment that I saw weakness in the market.
Then I woke to our overnight pop, when I was expecting a short move to around the support line at 125. Because we had broken the Support/Resistance line at 126.50 with committed volume, I didn’t expect my overnight VXX move would be to the positive side. Reward was high, risk was low.
Where to now? Italy will be making headlines, and the market must price that in. There is a resistance line around 123 which seems to be holding with reasonable volumes, so I went long the vxx again there (at 44.90). Until we cross that Resistance line around 123 with good volumes, I’ll believe we are in a (temporary) decline. I’ll be watching the MA’s and will reduce my positions as we get convergence (like we saw around the 28th.
What will move this market in the short term higher? US Earnings are good to OK which is a stabilizing factor, but I believe investors are bailing out of Euro bonds and into “risk assets” like the stock market, and also into the US T’s. I think they’re likely to choose the US market, as opposed to Brazil or Korea, or Japan markets. So at some time (maybe around 1140 (I don’t think we’ll see 1110 again)) we’ll see the new money come in.
The other thing I’d like to mention is that SKF has been falling from 97 to 59. Have a look at the daily chart. So, with the impending default of Grease and Italy, and maybe Spain, do you think the banks are going to take it on the chin? Do you think you might see a move of SKF, maybe to 80 or so? Or even higher? They can’t dump their bonds after all, who would buy them? So they’re toast. And the US banks won’t be making profits anytime soon because the US Government won’t let them. I shorted the banks before when evertybody said they were in trouble, and made a lot of money.
Trade the tape, and keep your stops tight. There's no shame in getting out and back in again.
Here's a chart of the VXX. Notice any similarities to the chart above?
@WolfStreet
ReplyDeleteIt may be some hedge funds are moving out of the markets to avoid the MF Global problem of prop trading with client funds.
Last month I saw the report on Bloomberg that money was flowing out of the funds. MF was levereged 80 to 1. The Bear was leveraged to around 40 to 1, by comparison.
With no oversight on the funds, these huge leverages are possible.
Also, looking at that chart again, I think I'm seeing the possibility of a Head and Shoulders. formation. However, the volume's not right.
ReplyDelete@Rock,
ReplyDeleteLook at retails. End of year, Christmas sales etc.
"Master Card Profit Climbs 38% as Spending arises" - bloomberg.com
ICan
O.K let's increase your comment numbers.
ReplyDelete"FED Lays Ground for More Large Scale Asset Purchases" - bloomberg.com
This one looks like a rumor.
"Probably"
ICan
Money talks, 99% of the time.
ReplyDelete"China Says No Talking Tibet as Confucious Funds U.S. Universities".
I thought Saif Gaddafi donated to LSE!
ICan
Peter L. Brandt(via Ritholtz)
ReplyDelete"What the charts say about the U.S. stock market". www.perterlbarndt.com
@Anonymous: make that www.peterlbrandt.com
ReplyDeleteGood article!
The last herd report I did said RTH was a good one. I haven't done a herd report lately, maybe I can get to that later this week.
A quick look at RTH says it's relative strength has been on the rise for the last 5 days, and is just today more positive than the S&P. I've found that the slope to the relative strength curve is very important, so I've been including that in the herd report.
^ typo.
ReplyDeleteSorry.
ICan
Another failure of the "profit in volume" MBAs: Sony will lose 1 Billion this year.
ReplyDeleteThink their stock might be down?
The reason they say is that sales are weak in the US.
You think?
I wonder if we can come up with a list of companies in the consumer space that cut margins to the bone and make money by selling in volume. That would be a pretty good short list.
ReplyDeleteFor example, look at PC. I know that's a sponsored address, but it's interesting it followed SNE's announcement and stock movement.
Things getting a little testy over there.
ReplyDeletehttp://online.wsj.com/article/BT-CO-20111102-711636.html
The article headline is *NOT* what the Frenchman said. He said "Greek MUST". "must" is not "urging", it is rather an ultimatum.
When I tell my son "you must pick up your clothes", that is not urging. It is a clear ultimatum.
Now, add this to
http://www.reuters.com/article/2011/11/02/us-greece-govt-military-idUSTRE7A11RP20111102
and see if you get 1+1 the same way I do.
Morning all! Take a look at the market today, I guess everything is good now? :P
ReplyDeleteRock - Yea, best of luck to you telling your son he MUST do something.
ReplyDeleteBut if you figure out a way to get him to do things, please pass that info on to the rest of us :)
Mangy Mutt
Thor - Don'tcha know when the market goes up the economy improves.
ReplyDeleteNow that the market is up you MUST go out and buy lots of stuff.
Gooooo on nowwww..... BUY...Buy.....buy....
Mangy Mutt
@Mutt:
ReplyDeleteI stop feeding him. Or, I tell him I'm going vegan and prepare only vegetables for a few days.
works every time.
But Rock - Isn't that like punishing yourself too?
ReplyDeleteThe only good vegatable is a deep fried vegatable and even then it is mostly just deep fried potatoes.
Although deep fried tweekies are good too and they are made of of wheat....or something.
Mangy Mutt
I posted another chart above of the VXX. Have a quick look at the 2 charts.
ReplyDeleteAs Arte Johnson would say,
veeeeeeeeerrrryyy interesting
@Mutt:
ReplyDeleteActually, I switched over to the T-Fal Actifry. I saw it on Doc Oz. (I like watching that program--seeing the audience makes me feel real lucky I'm not that depressed).
You should try it. It's wonderful. Makes the best fries, with one teaspoon of olive oil. Amazing.
Bloomberg reports the market wants to rally.
ReplyDeleteUsually, the first move after the Fed speaks is a false one, a head fake. I have to keep that in mind.
Bloomberg's take is that if the Fed says the market is moving up and there's no action, that will be good for the market and it will move up. If the Fed says the job numbers stink, we're not moving fast enough, and announces a plan to buy assets for QEn (I forget if we're on 2 or 3 or 4) that will be good for the market and it will move up.
I know contrarians will say "based on the Media reports of pressure up, look out below!" But I'm going to trade the tape.
@Rock:
ReplyDeletere: your 8:55
MF Global leverage was 40:1.
Bear Stearns leverage was 35:1.
Check your sources, you dummy.
@Rock
ReplyDeletere: your 2:45
MF Global leverage was 80:1
Read that somewhere yesterday. Have to find a source!
ICan
For those of you who may or may not be interested today is a palindrone day.
ReplyDeleteThis year is special because it contains two palindrome calendar dates: Jan. 10, 2011 expressed as 1-10-2011 (or simply 1102011) and Nov. 2, 2011 written as 11-02-2011 (11022011). The first one has already occurred and the second one, 11022011, is coming up. (Note that in most of the world where day-month-year date format is used, this year also has two palindrome dates. Date 11022011 representing 11 February 2011 already passed and 1102011 corresponding to 1 October 2011 is about to occur.)
After 2011, there will be one more year in this (21st) century containing two palindrome dates. That will be 2021, with palindrome dates Jan. 20, 2021 (1202021) and Dec. 2, 2021 (12022021). (In the rest of the world, after 2011, there will also be one more year in this century containing two palindrome dates, but that year will be 2012 instead of 2021.)
Nov. 2, 2011 represented as 11022011 is a one-of-a-kind palindrome date with respect to all palindrome dates contained in all four-digit years. Why?
First, number 11022011 equals 7 x 7 x 11 x 11 x 11 x 13 x 13, that is, the product of seven square, eleven cube and thirteen square where numbers seven, eleven and thirteen are three consecutive prime numbers! So, number 11022011 is divisible by the product of the squares of three consecutive prime numbers! Furthermore, it's also divisible by the cube of the middle prime of the three consecutive primes! In fact, 11022011 = 72 x 113 x 132 where, interestingly enough, the three superscripts side-by-side constitute 232 which is also a palindrome! Fascinating, isn't it? No other such palindrome date exists in all four-digit years.
In addition, since 7 x 11 x 13 yields 1001, another palindrome number, one could also express date 11022011 as 1001 x 11 x 1001 where the left and right sides of this expression divided in the middle are almost mirror images of one another! Isn't that something?
Also, if date number 11022011 is split into four two-digit numbers as 11, 02, 20 and 11, the first two numbers add up to 13 and the sum of the last two is 31, and 13 and 31 put side-by-side yield 1331 = 11 x 11 x 11! Now, by introducing two zeros in-between the digits of the first and last elevens, this expression will change from 11 x 11 x 11 to 1001 x 11 x 1001 = 11022011! Wow!
I hope this article convinces you that the second palindrome date of this year 11022011 to occur in a little over a month is indeed special and unique compared to all other palindrome dates in four-digit years. And aren't we lucky that it is going to occur in our lifetime? Okay, you better hurry up and start the preparations now so you have all the arrangements in place to celebrate it fully when it occurs.
Aziz Inan is a professor of electrical engineering. He can be contacted at ainan@up.edu.
http://www.upbeacon.net/opinion/views-from-the-bluff/nov-2-2011-is-a-one-of-a-kind-palindrome-1.2619349
Mangy Mutt
Mutt - I like 11/04/2011 better ;-)
ReplyDeleteThor doesn't 11042011 add up to 40 for you?
ReplyDeleteMutt
According to Forbes, Obama is the most powerful person in the world.
ReplyDeletePutin
Hu
Merkel
Bill Gates
Saud
Pope
Ben Bernenke
Zuckerberg
Cameron
www.forbes.com/powerful-people
Forbes loves to compile lists!
ICan
@ICan:
ReplyDeleteWhat happened to Steve Jobs? Forbes never can get it right....
If Grease leaves the Euro, it is likely to strengthen, the dollar is likely to devalue, and the market is likely to go higher.
ReplyDeleteOr not.
Mutt - yes it does ;-)
ReplyDelete"No more aid for Greece until it decides on Euro, Sarkozy say". www.theglobeandmail.com/report-on-business.
ReplyDeleteIf I were Germany, I'd let the PIIGS go! Let them sort their own problems - whether to catch tax evaders or balance budgets!
ICan
Manny - this is for you :-P
ReplyDeleteSo, of all the teachers I've ever had, only one did I really like, my favorite. Mr. Haywood from 5th grade. He's the only one who's name I remember.
Yesterday, I got this friend request on FB.
Alvin Haywood - Hello John... i saw you on facebook, and I'm sure I was your 5th grade teacher at Horrall School in San Mateo back in the mid 1970's...
Such an amazing thing for that to have happened.
SO - Facebook isn't ALL that bad ;-)
@ICan:
ReplyDeleteIf Ger did that, it would strengthen the Euro and make it impossible to buy a Mercedes or BMW.
Of course, I don't care about that, I have a Corvette.
@Thor:
ReplyDeleteYou went to Horrall? You poor SOB!
Rock, yes indeed I did! Then on to Borel, much better school. High School at Aragon. My father went to San Mateo High, class of '44 ;-)
ReplyDeleteFutures down quite a bit tonight!
ReplyDelete@Thor:
ReplyDeleteOh, ye of little faith.
The VXX is 42.84 this AM. Take a look at my 2 charts above, first one for the pattern, second one plot the 42.84 bar. See the similarity? VXX is weak. If the pattern plays out, we'll see the market go stronger.
Why? Turmoil in Europe is sending money our way.
I saw the tail end of a bloomberg report this AM. Didn't see it all, but they had a chart of corporate guidance on revenues or earnings, not sure which, and more companies are guiding down than up. My theory is that the QonQ revenues are down, so the "beat the street" is just a concoction for the MSM to pump things up. GDP has been revised down, so without crunching the numbers, it's plausable.
The S&P is trading aroun 12X earnings. Even if earnings go down, money coming in from Europe can push it up to more historical values like 18X earnings.
By Todd Buell OF DOW JONES NEWSWIRES FRANKFURT
ReplyDelete"(Dow Jones)-The European Central Bank surprisingly cut interest rates Thursday, taking a decisive step against rapidly growing risks to the euro zone's economic outlook and financial stability. The ECB announced that it is slashing its main refinancing rate - the rate charged at its weekly main refinancing operation - by 0.25 percentage point to 1.25. It also cut its deposit rate and the rate on its marginal lending facility by 0.25 percentage point to 0.50% and 2.00% respectively."
A surprise. Everyone expected the rates to remain steady to keep banks' profits up. But look for the banks to get weaker (as though we didn't already know that).
Zuck in the top 10? Good Lord, Forbes, the brown-nosing...
ReplyDelete@Mannwich
As the site's Minnesota, I'm curious if you know anything about this.
Rock - Damn! That was a good call last night! :-)
ReplyDeleteCool article.
Science Fiction meeting Science:
Cell Study Finds a Way to Slow Ravages of Age
http://online.wsj.com/article/SB10001424052970204621904577014011448483058.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsFifth
@Emmanuel117
ReplyDeleteI think to be able to do that takes a really special mindset. I'm really glad my son's not that bad a psychopath.
Globalisation.
ReplyDeleteHow's that working out for 'rich' western countries?. Distribution of wealth via exported jobs and cheap capital to former 3rd world countries
I can't belive what's happening in India. In my ancestral state, another Greece is brewing. Billionaire politicians are promising moon to the people as elections are coming up. Every segment of society is promised some goodie. From subsidised food, healthcare, education, or quadrupled wages and benefits for govt. employees and increases in min wages.
A primary govt. shool teacher I know will see his monthly income increase from Rs 5000 to Rs.32000. His wife is also a teacher. They weren't poor before. They lease their farming land for hefty rents.
And I am thinking who will pay for all this?
Then that state will have to bailed out at sometime in the future...........
ICan
The Euro PMs are saying the right things to stabilize the market, causing sentiment to come in and make it go up.
ReplyDeleteVXX is weak. It's falling on very small volume, so watch out for a spike. But I don't think it will go above about 44.50. That's it's strong resistance line.
TRIN's down around .707 (square root of 3, Mutt) which is bullish.
@ICan:
ReplyDeleteYour children and grandchildren, of course.
So enjoy the ride!
Do we have MFGate? It sure is sounding like Emmanuel117's "this" article comment of 9:24.
ReplyDeleteThe VXX is showing our weakness, and tonight I'me expecting a pop down to around 40.
ReplyDeleteNot that I am holding short overnight, I know better than that.
This morning, the MSM is trying to talk up the lower than expected job numbers. Good thing I didn't hold overnight.
ReplyDeleteBut the VXX is under it's resistance line of around 44.50. Have to watch the tape this morning to see if a direction is established. My opinion (which I will lose when the market opens) is that the pressure is up, regardless the pop down overnight.
John - Happy birthday to you, I sincerly hope you have a great weekend celibrating number four zero and you have several more birthdays to share with us.
ReplyDeleteMangy Mutt
Yes, happy birthday! I forgot, but good ol' Mutt remembered. Man's best friend.
ReplyDeleteWell, the President's speaking. Let's see if he's true to form, and the market sinks as a result. Again.
ReplyDeleteThere you go, Rock. True to form. Back to MN from CO today. Hopefully will have more time to check in here next week.
ReplyDeleteWow, interesting, emmy! Let me read the whole thing and I'll weigh in.
ReplyDeleteWhat an amazing story, emmy! Kind of encapsulates the corruption and outright criminality at the top of the food chain that's ruining this country and the world. Tyranny of the gluttonous & criminal elite politically and otherwise.
ReplyDeleteIt also sums up why OWS is so important and why the backlash was inevitable. People who have been playing it straight all these years thinking it was the right way to to do it are sick of being playing for suckers and chumps.
It also lays bare the false notion that many hedge funds actually do any due diligence whatsoever. What a farce.
ReplyDeleteThe exploitation of God and charity here is also repulsive.
Promises.
ReplyDeleteCNY moves higher at the end of a G-20 meeting! And then falls back!
ICan
@Mutt:
ReplyDelete"SANTA MONICA, Calif., Nov 04, 2011 (BUSINESS WIRE) -- The 1969 Dodge Charger that famously portrayed the General Lee in The Dukes of Hazzard has been named "The Greatest Movie and TV Car of All Time" by Edmunds' InsideLine.com, the premier online resource for automotive enthusiasts. Bo and Luke Duke's high-flyin', bootleggin' muscle car topped a list of 100 cars chosen by Edmunds.com editors as the most iconic on-screen vehicles in Hollywood's storied history."
I can't remember, do you have a charger or challenger?
UPL was on my radar after the 3Q earnings announcement, and it's inherent volatility.
ReplyDeleteTheir earnings were stellar. Looks like somebody wantes to acquire it. I entered at 32.80, went to a full position long at 33.40.
The interesting move was at 9:00 this morning. Typical "sell the news", kind of what happened to AAPL.
I suspect we mightsee an offer tendered over the weekend. "Will see".
From DJ newswire:
ReplyDelete"WASHINGTON (Dow Jones)--Some of the nation's top economists debated Friday whether the U.S. government should slow its reporting of economic-growth figures to ensure greater accuracy."
First, if the numbers are so far off, I suggest they fire their accountants and get somebody who can count.
Second, who really believes the delay is due to accuracy concerns. Wouldn't it be rather that the numbers suck?
Happy Birthday Thor ;)
ReplyDeleteRock my Charger is a 74, which is the last year of the "Classic" Charger muscle car.
ReplyDeleteMany other muscle cars started changing the look, style and motor in 72 and were no longer concidered a true muscle car.
The 74 Charger was the last hold out of the era, retaining the 727 transmission, coke bottle shape, beefed up rear end and big block engine.
When people see and hear the car they are impressed, but when they hear it is a 74 their reaction is like "They made THAT in 74"
Just like Rodney Dangerfield - It gets no respect.
But if I can use the 69 as a selling point, then all the better.
Thanks for the 411
Mangy Mutt
I'm positioned for a Friday sell-off. TRIN's not up much, but the slope seems up (bearish). If we get a resolution in Europe before the market closes, I think the market will respond to the upside, so I'll get stopped out.
ReplyDeleteBloomberg just reported the the Fed Repos are up to 125B. That is, there is 125B in foreign currency on deposit at the Fed.
ReplyDeleteIt's never been this high. During the 2008 financial crisis, it was only 91B.
I think we discussed the possibility of people moving their money into the US. Looks like it has been happening.
Once on deposit at the Fed, these people can buy treasuries.
Rock - I believe you and Mannwich have discussed people moving their money out of the Euro and even though the USD is still not worth the paper it is writen on, it is a safer bet then many other currencies.
ReplyDeleteThe questions I have
1) Doesn't this make the $$ stronger in value
2) If the $$ is stronger in value, doesn't that go against Bernanke's QE?
3) What happens when people decide to move out of the USD
OR
Because they can but treasuries does that help Bernanke and his QE and help push speculation?
And again what happens when people decide they want out of the USD?
Mangy Mutt
@Mutt:
ReplyDelete1) Yes. See UUP which is basically the USD vs a combination of currencies mostly the euro, or google usdeur in the search and pick the first chart you see. You will see the dollar rising. Also, see TLT stock ticker, and you'll see it too rising since the 24th (ignore the bear trap the 27-28. Also, the relative strength of TLT compared to the S&P (over the last 5 days) is 6%. The treasuries are substantially stronger than the S&P.
2) No. The Bernank would be more prone to go the next QE if the dollar's stronger because QE is designed to weaken the dollar, and help exports. As there is now a recession in the Eurozone, a 23% of our exports go there, so that number's down as well. Stronger dollar = less exports. Eurozone in recession = less exports. We need QE for more exports.
3) I did. I moved into the RMB and into the Sing$. Although the profits to date have been outstanding, I just over the last 3 days lost tens of thousands of dollars. It would have been more but I closed the RMB outa couple weeks ago. I think I commented on that here. I am hoping for a weaker USD to increase my net worth in Sing$.
OR
Yes, when they convert those USDs into Treasuries, it helps the QE Twist. Remember the Twist is selling short term T's and moving that money into medium term T's. Basically. So when people buy the medium term T's, it pushes the price up, and all the QE Twist buys have made money. Because the Fed bought T's and now they are so popular for QE1, the Fed has made a huge profit. A lot of that profit has come from overseas, including China. You can think of it as we overspend, borrow money from overseas, and they pay for our extravagance. If they decide to sell and the T's value goes down, they have paid a lot of money to us. You watch, when it comes time, the T will fall in price.
It seems the T and the USD are following similar patterns. I don't know the relative strength of each, and the patterns aren't exactly the same. You need to ask someone like Leftback about bonds and how they work and their coupons, etc. I don't know. Leftback was going to train us on bonds, but he only wrote one post then dropped out of sight.
The last thing to remember is that Bernank is brilliant. I wish I were half as smart. He foresaw the Eurozone SNAFU, and got the heck out of Dodge. That's why there is Twist. He made us a lot lot lot of money. Hopefully it will be enough to cover our losses from the Government Motors tarp investment (which still hasn't been paid back).
China article already highlighted by Emmie, in WSJ.
ReplyDelete"Many Rich Chinese Consider Leaving". Online.wsj.com
Preferred desitination:
U.S. 40%
Canada 37%
Singapore14%
Europe 11%
Other 9%
HongKong 5%
U.K. 2%
ICan
"China's vanishing factory bosses" -theglobandmail.com/report-on-business/international-news/
ReplyDeleteToo much debt. Even borrowed from shadow banks.
"Streets are lined with multiple BMW, Porsche, Mercedes, Jaguar, and Meserati dealership...partly funded by shadow bankers..
Maybe some of those bankers are in Vancouver? No?
ICan
"General fired over Karzai remarks" www.nytimes.com/2011/11/06/world/asia
ReplyDeleteGeneral Fuller was responding to remarks made by President karzai a week earlier in which President Karzai told a Pakistani interviewer that Afghanistan would come to Pakistan's aid if attacked by the United States.
The General's remark was,"Why don't you just poke me in the eye with a needle! You've got to be kidding me. I'm, sorry, we just gave you $11.6 billion and now you're telling me, 'I don't care?'".
Wow Karzai is a joke!
ICan
GLD is making those W formations with the right side higher. I was stopped out at 174, but I rejoined at 162. It looked like a bad decision then, but with my 20-20 hindsight, buying something strong on a pullback makes sense.
ReplyDeleteMaybe it's AAPL's time.
Jeffries bails out 2.2B from european sovereign debt.
ReplyDeleteIt's not too late to get into the market. I have a feeling that a lot of big banks are still holding.
SKF relative strength is at 10% higher than the S&P. It's had a major pullback from 93, and is now 61. And we know banks are in trouble.
Somebody said that Greece is a drop in the bucket compared to Italy.
Futures are on the rise right now, and looking at slopes of curves tells me as much as the absolute value. Maybe more.
The SPY's daily stockhastics are falling and have hit around 50%.
ReplyDeleteRemember, the best time in the year to buy is when your strong stock hits 20% and the SPY (or other index) has also hit 20%. It only happens once or twice in a year.
TRIN is around .50. Very bullish.
ReplyDeleteMorning everyone, I hope you all had a great weekend.
ReplyDeleteFor now I am still out of the market, but enjoying the lessons.
Mangy Mutt
Morning all. Thought this was interesting, although not surprising. Not only a battle of the classes, but between generations.
ReplyDeletehttp://www.huffingtonpost.com/2011/11/07/us-wealth-gap-young-old_n_1079372.html
Back in the saddle! Thank you all for the birthday wishes! SF was fun, crappy weather, but it followed us home and was below FIFTY here last night! Looks like we're going to have another crazy winter.
ReplyDeleteRock, you guys have been getting a lot of rain lately!
@Mannwich:
ReplyDeleteGreat article! Really shows why someone should teach kids financial responsibility and how to handle their finances.
I don't remember any financial courses from High School. I do know for sure I never had a course on how to do taxes. I remember when I got out of undergrad, I think I had taken only the minimum of financial courses, which was 3. 9 credit hours as opposed to around 200 +/-.
I don't think anyone ever told me how important to the rest of my life understanding finance would be.
So it's no wonder to me that kids borrow 100000 to get through college, without evaluating and having a plan to manage that debt.
And, I would suggest, that most members of our congress are equally clueless.
I always thought that schools should teach how to manage finances. But they don't. And since most parents don't know either, well, it's a recipe for disaster. And now we (and our kids) are facing that disaster.
Thor - When I read that your weather was going to get below 50 my eyes teared up for you.
ReplyDeleteI am sure that Mannwich still wears a tee shrit and shorts at 50 degrees :p
Mutt
Rock - Finances are a secret, that only the bankers should understand.
ReplyDeleteConcept of; If you make$xxx you can only spend $xxx is to be hidden from the American public, cuz banks have this magic pixy dust called "Leverage" and if this leverage is used properly it can make $1 feel like $2 or $5 or even $10.
So these kids that are borrowing $100,000 should actually feel like MILLIONAIRS...Never mind the fact they will never be able to buy a house or have a decent job.
Why if you FEEL like a million bucks, you are.....Right?????????
Couldn't agree more, Rock. Disaster looms because of this (willful?) ignorance passed down generationally.
ReplyDeleteYou are right, Mutt! Shorts stay on until at least below 40. Boo boo, Thor!
ReplyDelete