PAPER TIGER? PAPER CITY?

GHOST CITIES
Please take a few minutes to watch this 60 Minutes video on China's ghost cities.  I've written about this several times, but given the recent new action by the Chinese government to curb real estate inflation, it seems as though the may be new movement in possible deterioration of their most-loved asset market.  The Communist government announced new taxes that require sellers to pay 20% capital gains taxes and also mandated that purchases of second homes must be paid for with 60% cash down payments.

WHAT ELSE CAN THEY DO?
Given the investing approach and lack of alternatives, who knows if this will be the final straw that blows them up?  As we know, central planning and central banking and a zero interest rate world creates all sorts of mal-investments and mis-allocation of investments to compensate for distortions in yield and risk.

Enjoy;



Thanks for reading.  I've been slammed with lots of projects, please check back frequently as I am trying to post more.

GOATMUG

Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments athttp://www.goatmug.blogspot.com/

INSIDER TRADING BY THE REAL INSIDERS

60 Minutes produced this video about our wonder government class and how they have been able to perform investment related acts that would land the rest of us in jail.  The work of 60 Minutes added to the investigations of others to finally push our corrupt representatives to make laws that prohibit what is really insider trading.  Last week, the Senate passed a bill to make illegal these acts by members of the elected class and their aides and Congress says they will pass their own version next week.

IT TOOK THIS LONG?
I applaud these measures, but one has to ask why it took so long?  It reinforces the notion that we absolutely need term limits and I would suggest that a maximum term amount would be two.  Professional politicians have run our country right into the ground while they find "legal" ways to profit from the system.

EVERYONE GETS A PIECE
They disgust me (elected officials from top to bottom) and unfortunately the more I see and hear about our government.   I believe we no longer hold the high ground in comparison with backward banana republics, except in the fact that we are becoming more backward and we are a heck of a lot bigger.




Enjoy the video.  While I personally am astonished to have posted two videos in the Theater Of The Mountain Top from some of the most liberal sources over the last couple of days, you've got to get them where you find them!

GOATMUG

Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments at http://www.goatmug.blogspot.com/ 

POVERTY IN THE USA - WHAT NO ONE WANTS TO SEE

Let's take a look at this recovery we are having.  Anyone not believing it is really happening?  I've written a bunch about the concept of "Recovery in Name Only" meaning that we really haven't seen a significant recovery in key areas in the economy.  Drivers like silly things such as jobs and housing are simply not participating in the asset price recovery we keep hearing about.

60 Minutes does a piece about poverty in Amerika.  While the government solution is to throw more money at the problem it is clear that there just continues to be more folks in need of assistance.





Everyone wants to believe that everything is getting better, but I continue to feel that sense of dread in me that as soon as I give in and give the green light, all hell is going to break loose.  Incomes are not rising but costs certainly are.  How long will it be before we hear that fuel costs are responsible for job cuts?  Once again these gas prices and oil prices are an assault on those in our nation (and the world) that can least afford cost increases.  These are direct taxes on their ability to survive.

GOATMUG