Jim in San Marcos writes:
50 years ago, when you picked up a newspaper, you got a report of tragedies, deaths, assassinations, wars and weather reports along with the sports and business pages.
In today’s world, we have people writing the news before it happens. The US Presidential election comes to mind. The problem is, it didn’t happen as written.
What is not appreciated here, is that the manipulation did not go as planned. Journalism failed the common reader by interpreting too many facts and arriving at a conclusion that the reader was expected to reach after reading the article.
The Great Depression of 2006 is now being referred to as the Great Recession of 2006. My point that I made in the past, was that the people of the 1929 Great Depression had no idea that they were in great depression. Something was drastically wrong and they had no idea what it was. It was only when you picked up a history book in the 1950’s that you discovered the Great Depression. It was only when things started to get very noticeably better did people look back and see what they had been in.
I used the newspaper example of how Hillary had the election won to show how the truth about the economy has been stretched a tad. We are being told the economy is just great. 95 million people no longer looking for work and 45 million on food stamps. The fact you can earn more money from an interest perspective, spending money, rather than saving money turns every rule about financing upside down.
The stock market hits new highs. Most all stocks are divorced from the company they represent, the only thing that connects the buyer to the stock value is the dividend. Every stock has an owner and it is not the company (from a technical aspect). The price is determined by what another person is willing to pay for it. So a drop in the price of IBM of say $100 would revalue the net worth of shares issued, but not reflect in one bit the real assets of the actual company.
Right now, the world of journalism says everything is just great. Kind of reminds me of the many newspapers that flat out stated that “Donald Trump could never be elected President.” A reality check seems to indicate that whatever opinions are available to us right now don’t know any more than we do, absolutely nothing.
Admitting that we know nothing gives us the ability to discard common sense if we feel it necessary. We all want to be comforted thinking we made the right decision by looking for company that shares our views, and that leads to problems. The herd is often wrong when it really matters.
The problems that we are about to face have been around 6 to 8 years. My only advice, if you have a job, keep it for the next two years and see how things progress in the immediate future. I get my first Social Security paycheck in two weeks at the age of 70 and I am still working.
We do have to realize that whatever solutions are proposed to fix the current problems will be solved by people who have saved money in the system (you can't tax people that are broke). The most visible taxable assets are wages, real estate and bank savings. What we need to understand is, the whole population is the target for any solution to the problem, not some sort of spend until we drop, financial boondoggle by Congress. We could end up with a Value Added Tax for manufacturing and production. In the future, for Congress, it should be, "Real money in, Real money out."
Remember when you buy a newspaper, they give you what you want to hear, otherwise you select another news source. So, in today’s world you get to pick your own perceived reality. The trouble is, there is no feedback until it is too late, if you are wrong.