Comments on: You’re Rich And I’m Rich, OK! You’re Still Rich And I’m Not As Rich, Not OK! http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/ Slicing Through Money's Mysteries Fri, 10 Feb 2012 05:38:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Why Did Bank of America Listen To Us And Not Citigroup? | Financial Samurai http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/comment-page-1/#comment-2635 Why Did Bank of America Listen To Us And Not Citigroup? | Financial Samurai Mon, 07 Dec 2009 15:59:11 +0000 http://www.financialsamurai.com/?p=1842#comment-2635 [...] Related Post: “You’re Rich I’m Rich OK!  You’re Still Rich I’m Not As Rich, Not OK... [...] [...] Related Post: “You’re Rich I’m Rich OK!  You’re Still Rich I’m Not As Rich, Not OK… [...]

]]> By: Larry L, New York http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/comment-page-1/#comment-935 Larry L, New York Tue, 20 Oct 2009 06:33:58 +0000 http://www.financialsamurai.com/?p=1842#comment-935 Here's a great Steve Forbes article that neatly ties everything together: http://www.forbes.com/global/2009/1019/opinions-steve-forbes-capitalism-true-love-story.html It's got: - Steve Forbes (see other blog post :-) ) - Greed - Free markets - Govt intervention Here’s a great Steve Forbes article that neatly ties everything together:
http://www.forbes.com/global/2009/1019/opinions-steve-forbes-capitalism-true-love-story.html

It’s got:
- Steve Forbes (see other blog post :-) )
- Greed
- Free markets
- Govt intervention

]]> By: BG http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/comment-page-1/#comment-920 BG Mon, 19 Oct 2009 15:40:20 +0000 http://www.financialsamurai.com/?p=1842#comment-920 <a href="#comment-865" rel="nofollow">@Larry L </a> Larry: Texas is not suffering from a housing-led financial crisis, because it is a heavily regulated state. You couldn't get those fancy loans (40-year balloon interest-only "liar" loans) in Texas, but you could in California. Texas does not allow it's citizens to invest though LendingClub (or other peer-to-peer lending) either... I believe the history is that Texas got burned in a housing crisis back in the late 80s / early 90s and hence started strict regulations on the mortgage industry. This is why Texas did not have a huge runup in housing prices, and also suffer the collapse. With heavy regulation Texas is still growing faster than most (all?) the other states in the union. As for greed: correct you can't regulate greed away, but you can regulate the mortgage industry so this type of crisis will never happen again. @Larry L
Larry: Texas is not suffering from a housing-led financial crisis, because it is a heavily regulated state. You couldn’t get those fancy loans (40-year balloon interest-only “liar” loans) in Texas, but you could in California.

Texas does not allow it’s citizens to invest though LendingClub (or other peer-to-peer lending) either… I believe the history is that Texas got burned in a housing crisis back in the late 80s / early 90s and hence started strict regulations on the mortgage industry. This is why Texas did not have a huge runup in housing prices, and also suffer the collapse. With heavy regulation Texas is still growing faster than most (all?) the other states in the union.

As for greed: correct you can’t regulate greed away, but you can regulate the mortgage industry so this type of crisis will never happen again.

]]> By: sandiego realestate http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/comment-page-1/#comment-907 sandiego realestate Mon, 19 Oct 2009 09:16:10 +0000 http://www.financialsamurai.com/?p=1842#comment-907 Communism is a socioeconomic structure and political ideology that promotes the establishment of an egalitarian, classless, stateless society based on common ownership and control of the means of production and property in general.[1][2][3] Karl Marx posited that communism would be the final stage in human society, which would be achieved through a proletarian revolution. "Pure communism" in the Marxian sense refers to a classless, stateless and oppression-free society where decisions on what to produce and what policies to pursue are made democratically, allowing every member of society to participate in the decision-making process in both the political and economic spheres of life. Communism is a socioeconomic structure and political ideology that promotes the establishment of an egalitarian, classless, stateless society based on common ownership and control of the means of production and property in general.[1][2][3] Karl Marx posited that communism would be the final stage in human society, which would be achieved through a proletarian revolution. “Pure communism” in the Marxian sense refers to a classless, stateless and oppression-free society where decisions on what to produce and what policies to pursue are made democratically, allowing every member of society to participate in the decision-making process in both the political and economic spheres of life.

]]> By: admin http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/comment-page-1/#comment-905 admin Mon, 19 Oct 2009 02:55:16 +0000 http://www.financialsamurai.com/?p=1842#comment-905 Mike - I'm an optimist, hence I'm optimistic the government has implemented stronger relationships to ensure this debacle never happens again. I don't think I did anything wrong, yet I got paid down huge last year, and my property assets have declined in value because of the system. I'm not angry, I'm just focused on trying to learn from the experience and make sure I don't suffer as much again in the future. FS Mike – I’m an optimist, hence I’m optimistic the government has implemented stronger relationships to ensure this debacle never happens again.

I don’t think I did anything wrong, yet I got paid down huge last year, and my property assets have declined in value because of the system. I’m not angry, I’m just focused on trying to learn from the experience and make sure I don’t suffer as much again in the future.

FS

]]> By: Mike Hunt http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/comment-page-1/#comment-904 Mike Hunt Mon, 19 Oct 2009 02:07:31 +0000 http://www.financialsamurai.com/?p=1842#comment-904 FS, Thanks for the response. Do you sense people are angry because of the ballooning US deficits? I agree the best situation is when everybody is doing better but shouldn't this come about by rewarding success vs the gov't picking winners & losers and then paying for it with future taxpayer obligations? How come there isn't a large number of people who are fighting this? By the way, I do agree with the theme of this post. Resentment and jealousy are not productive emotions. And there is no point in getting angry over something in which you have no control over. However I do think people should be standing up to do the right thing and holding our government to account. Henry Paulson, Bernanke and Greenspan should be held to account and not overlooked. In this case Bernanke should not be renewed and Paulson should be investigated and tried for fraud. Goldman Sachs should be investigated for fraud in front running trades with the high frequency trading. Obama should be held to honoring his campaign promises. I get a bit frustrated with all the cheerleaders, including the media, who overlook enforcing the principles that should make America stronger. -Mike FS,

Thanks for the response.

Do you sense people are angry because of the ballooning US deficits?

I agree the best situation is when everybody is doing better but shouldn’t this come about by rewarding success vs the gov’t picking winners & losers and then paying for it with future taxpayer obligations? How come there isn’t a large number of people who are fighting this?

By the way, I do agree with the theme of this post. Resentment and jealousy are not productive emotions. And there is no point in getting angry over something in which you have no control over. However I do think people should be standing up to do the right thing and holding our government to account.

Henry Paulson, Bernanke and Greenspan should be held to account and not overlooked. In this case Bernanke should not be renewed and Paulson should be investigated and tried for fraud. Goldman Sachs should be investigated for fraud in front running trades with the high frequency trading. Obama should be held to honoring his campaign promises.

I get a bit frustrated with all the cheerleaders, including the media, who overlook enforcing the principles that should make America stronger.

-Mike

]]> By: TraderBots http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/comment-page-1/#comment-900 TraderBots Sun, 18 Oct 2009 17:04:43 +0000 http://www.financialsamurai.com/?p=1842#comment-900 <a href="#comment-894" rel="nofollow">@admin </a> Totally agree. I'm looking at it more like this. The past couple of years, the shareholders of the company didn't do so well from owning Goldman Sachs. I bet you the employees did extremely well regardless of the firm's performance. It seems like profits funneled into the pockets of the Ibankers vs Shareholders. http://www.traderbots.com/stocks/Stock.aspx?symbol=gs @admin

Totally agree. I’m looking at it more like this. The past couple of years, the shareholders of the company didn’t do so well from owning Goldman Sachs.

I bet you the employees did extremely well regardless of the firm’s performance. It seems like profits funneled into the pockets of the Ibankers vs Shareholders.

http://www.traderbots.com/stocks/Stock.aspx?symbol=gs

]]> By: admin http://www.financialsamurai.com/2009/10/16/you-rich-i-rich-ok-you-rich-i-not-as-rich-bad/comment-page-1/#comment-894 admin Sun, 18 Oct 2009 14:23:19 +0000 http://www.financialsamurai.com/?p=1842#comment-894 Ho TraderBots - Interesting sight you got there. Yes, $734,000 is an eye-popping figure, and the WSJ is probably doing a little sensationalist journalism, but even $500,000 is still a lot. We can only rationally determine what people deserve if we can understand the revenue they bring in. What if they bring in $10 million in revenue for the firm? Is a 5-10% payout egregious? I don't think so. If they only brought in $2 million for the firm, I'd say yes. I made $3.3/hr at McDonald's for a reason when I was in HS. The market determined that wage, and I was probably producing $30/hr in revenue. Best, FS Ho TraderBots – Interesting sight you got there. Yes, $734,000 is an eye-popping figure, and the WSJ is probably doing a little sensationalist journalism, but even $500,000 is still a lot.

We can only rationally determine what people deserve if we can understand the revenue they bring in. What if they bring in $10 million in revenue for the firm? Is a 5-10% payout egregious? I don’t think so. If they only brought in $2 million for the firm, I’d say yes.

I made $3.3/hr at McDonald’s for a reason when I was in HS. The market determined that wage, and I was probably producing $30/hr in revenue.

Best, FS

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