[Villages PL]

Originally Posted by rubicon

VillagesPL from your keyboard to God's ears

Well, you can't just proclaim that the stock market is too high. On what basis are you making that judgement?

[Villages PL]

Originally Posted by donb9006

Really? No bubbles? How about in bonds? The fed is giving money to the banks to buy treasuries, keeping the interest rates low and prices high. How much? How about $45 billion a month. The fed is also buying up the "toxic", non performing mortgages the banks got stuck with when the government made them give out mortgages to inner city minorities. How much? Another $45 billion each and every month. And how does the Fed, a private gable of banks PAY for these things...credits on a computer screen. Our financial system is based on credit.

I just heard about a new rule that was put in place for banks: They can't trade securities for their own profit. This and "toxic mortgages" seems to be getting off the subject of this thread.

So...if you can't time the market...how do you know when the highs and lows are? If you can't time the highs and lows, how do you know when to "buy low", and "sell high"?

When the market crashed, I assume we all will agree that the market was low. And now the market is much higher than it was then. But the economy is still underperforming, so that leads me to believe there is still plenty of room for earnings growth. When we get to the point where the economy is beginning to overheat, that will be the time to start taking some profits.

That's what I've heard too...it's the medical insurance companies who want EVERYONE to be a policy holder. But you can't forget the extravagant salaries the medical "professionals" get either. Medicine, the field, simply costs too much. It's the cost that has to go down, it must be affordable.
Is it a "free market" when you have to introduce buying Canadian as a viable alternative to getting your medications? When you have to travel to a foreign country for an operation? Really?
Hospitals and good doctors charge "astronomical fees" because they can. No expense is too great when MY life is on the line...do it, whatever the best charges...pay it! 90% of medical costs are to keep the old and terminal alive a few more months.
Unfortunately, medicine is fully of greedy people. Greedy people in need of regulation. Look at China for an example of no regulation, no enforcement anyway... However, regulations shouldn't be politically driven, giving one an advantage over another.

I think the discussion has become too broad and is straying from my original subject. Can you address, or comment on the example I gave in my opening post? It was not my intention to focus on 1) the bond market 2) the stock market 3) main street 4) drug companies 5) hospitals etc. etc.. Did you see anything in my opining post to suggest that?

[Villages PL]

Originally Posted by Villages PL

Some things that can make the free-market system more vibrant in the near term, can be harmful in the long term. Can you think of a scenario where this is already happening?

I believe the demand for universal health care (a harm to the free-market system) is directly proportiional to the number of those who are overweight or obese. In other words, the more prosperous the food industry becomes the more likely it is that people gain excess weight. And when you get to the point where 1/3 of the population is obese, there will be a big demand for universal health care.

The average person is already overweight and unable to afford their own health care. So what do they want? Universal health care.

To restate it once again: To the extent that the food industry is successful, the free-market system is harmed (long term).

Note: I'm not placing blame on anyone, I'm just focusing attention on what's happening.

I'd like to add another aspect to "how the market is harmed" when the food industry is successful, to the point where 1/3 of adults have become obese:

People who are obese are generally more difficult to employ. When employers have their pick among many applicants, they are more likely to hire someone who looks physically fit, so as to keep the number of sick-days to a minimum and keep group insurance premiums more affordable.

So, again, the harm that comes from a successful food industry reverberates through the economy. And their success, in the long run, can lead to failure in the overall economy. In order to maintain a vibrant economy, we need to maintain a physically fit, healthy, work force.