My server’s been having issues. they say they’re fixed, but….I’m looking for a more reliable host. Or I might self host on WP. That would give me more disc space but I wouldn’t have the pinup. Oh life…
This is a post I wrote for my father. It’s raw, probably not very good and not meant to be political. In that spirit I would appreciate no comments about my politics or my shallow materialism. They will be quickly deleted
You would have been 95 last Monday. Can you imagine? I miss you. I really miss you. To say you would have been a beacon of sanity in a world gone mad isn’t quite true as you were never completely sane. But you were wise when you weren’t crazed and I was one of the few people who could tell the difference. That was the greatest gift.
The Dow went under 7,500 today. To you that probably sounds incredible. It never went over 5,000 in your lifetime. As you predicted the world has changed greatly in the almost eighteen years since you left this earth for something better I pray.
I’m scared daddy really scared. I had bought an apartment over a decade ago on Riverside and 75th. You would have been proud–it was a “world class” location. Though probably I should have spent 40K more then and bought a much larger apartment. It would have brought in 200K more when I sold. Yes daddy that’s how crazy it was. 40K which once seemed like so much seemed like a drop in the paint bucket. It seems like a lot again. Still I spend. But will stop when the renovation’s over.
You used to make fun of me. When I spent a decade trying to teach you how to work an ATM you would tell people I was really great at withdrawals. It so embarrassed me.
I know now that was your pride in my having. You went from being born in an apartment with the toilet outside the building to riches. Fortunately you had that gambling gene and while great at buying stock wasn’t so great at selling. KMart, Lowes–there were a number of truly great companies you bought in that went bankrupt and we lost significant amounts of money in. Only fortunate as your losses make my recent losses seem more bearable. And this is one time most people in the country are in it together
Then there was the great margin call of 70. I was only nineteen but mommy called and asked me to come home as she was scared to leave you alone. We lost everything. But you were 56 and had only just begun. My kind of man.
You told me I had to be perfect. But you taught by example that perfection doesn’t exist, and that maybe somebody could put $1,000 in the market and in 50 years that would be 50K or something through the miracle of compound interest. But in the real world it doesn’t work that way. Most strive for more and greed, no matter how wonderful the person, sets in.
I became greedy. You told me, begged me, not to put more than ten percent of my assets into stocks. I was good during the dot com (Internet era) but I wanted what everybody seemed to be having. I went to mommy and asked for dispensation. Stupid I know. I lost very little and made more. I understood that a company couldn’t be valued on potential but on earnings. How wonderful it would be if we were valued on potential–I would be….
What’s happening now is something nobody has ever seen before. It’s called the most serious recession since your beloved Great Depression. Some call it a depression. People were given easy credit to buy homes and buy goods.
Thank you from the bottom of my heart for teaching me that debt, except for a mortgage, isn’t good. I was offered many mortgages without applying. The little voice in my head, (yours) told me that something wasn’t Kosher. You were right.
I knew I had to get out of New York when money began to seem meaningless to me. There were many other reasons but people were spending money as if they could print it themselves. Some kind of did.
I bought a house. Me, the world’s most inept person. I’m living in a townhouse and one day I realized that taking care of a house wouldn’t be much different. Really home ownership is the only form of housing ownership that makes sense. I know I won’t default.
Yes daddy it’s come down to that. Briefly banks no longer hold the loans they make. They bundle them and sell to investors but there’s no market for them as there is no market for so many things.
Under the program, the Fed will lend to investors who acquire new securities backed by auto loans, credit card balances, student loans and small-business loans at rates ranging from roughly 1.5 percent to 3 percent.
Depending on the type of security they are borrowing against, investors will be able to borrow 84 percent to 95 percent of the face value of the bonds. Investors would not be liable for any losses beyond the 5 percent to 16 percent equity that they retain in the investment…..
The market for new securities backed by mortgages and other types of loans has collapsed. Last year, investors bought $313.9 billion of these securities, down from $1.6 trillion in 2007 and $2.1 trillion in 2006, according to Dealogic.
Last month, banks issued just $1.6 billion worth of such deals
That’s only one problem and one possible maybe partial solution. It’s crazy daddy. We had an inept administration in DC. People blame Clinton, who was president just after you died, but they forget that there was a Republican congress and he had to pander to them. I could go further in placing blame but uh….Remember Alan Greenspan? He did frigging nothing. Believed that brokerage houses and banks could self-regulate. Now he called for nationalization of banks.
Here’s Paul Krugman. He’s an economist I think you would have liked as he speaks plainly and speaks truth. He does scare me more than I have been.
Everything that I thought I knew. I know nothing. I just know I want to live in comfort and saved for that. I saved so I could leave somethings to your granddaughter. I want her to have a great life.
Daddy I could so use your counsel. As a father, a CPA and an investor. But you’re not here and I have to pretend that I know just a bit. For nobody right now is expected to understand more than a little