I don’t haggle for prices because gentlemen do not worry about money. If you have to ask how much something costs, then you shouldn’t be buying it. Truth be told, luxury goods in this country are in exceedingly high demand. I realize some of you live in 0hio where everyone is poor; but this is an incredibly rich country, with millions of millionaires.
Guys like me are a dime a dozen. I am an inch of dust compared to the guys with 400ft yachts with helicopter pads on them and ghost yachts tailing behind with toys, 30,000 square foot homes, employing over 100 people to manage the house.
What do you think these people are spending money on?
Understand these people are sick in the head. They are obsessed with consumption and feel incomplete unless they outdo their friends with new, expensive, toys. Having a Benz or a BMW is a joke. The new upper class are driving Bentleys and Phantoms.
Personally, I’d rather have my dick chopped off before I spend 350,000 on a fucking car. To each his own, I suppose.
Paintings are fetching for $100 million plus at auction and anything Picasso is selling for high 8 figures, even his late/bullshit work.
This is being reflected in the shares of JWN, LULU, KORS, TIF, BID, ULTA, APPL, BC, SKS etc.
The funny shit is, the new upper class, guys like Zuckerberg and Thiel, dwarf the net worths of the old money, social registry, class. There is a lot of friction between old and new money, more so than ever before. Everyone is aspiring to be rich and most fake it until they make it, or not. I know so many people who make $500k per year who are flat broke. They spend all of their money because they make so much and endeavor to live life to the fullest. It is no surprise to me to see retail stocks leading the market higher.
In short, don’t get caught up in the big lie that is country is broke. That’s wrong. The government is broke, but the people are rich as fuck. Sure, there is an underclass and the divergence between well to do and dirt poor has never been wider. But that is not my concern, when trying to figure out asset prices.
If you follow the money closely and respect it, you will end up getting some of your own.
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The government is broke, and uneducated people are broker. But, everyone else has more than recovered.
Also, 500k per annum doesn’t go as far as it used to….especially on that there east coast.
One of my first jobs was working as a bus boy at a fat ranch for min wage and no tips – except for doing 7-11 runs for guests cheating on their diets, and then I’d gouge the shit out of them. This was 1985, and One day i overheard one of these Fila sweat wearing turds say, literally, “500 thousand a year just doesn’t go as far as it used to anymore.”
One of them left a single dollar on the table and, after I snagged it, I could hear one of the other guests say “you’re not supposed to tip” as I walked away. My service was good, I was respectful – and no fucking way I was giving that dollar back.
They called the manager over, he called me over, explained the policy re no tipping. I said I couldn’t give it back – it was impossible. He asked me why and I said, respectfully, “because $3.25 an hour just doesn’t go as far as it used to anymore.”
As they beat me senseless, I sketched out an idea for a line of women’s yoga wear that would make even chunky ass bitches look great.
They stole that idea even faster than they took back my dollar and, leaving me in a heap, tearing the hundred million dollar idea from my hands, said, “thanks for the business, kid – we’re gonna call it LULU.”
Only I called it MILF.
Some funny shit!
I hope you at least got laid by a rich bitch.
Caddyshack!
You make a good point with the observation that “the divergence between well to do and dirt poor has never been wider”…
Actually, the last time said divergence (actually a fathomless abyss) was this extreme was in 1929… Hummm
The gov’t is like those $500K/year people who spend every penny and take as much debt as possible to spend more. They wind up banko at some point. I don’t know how we continue this deficit spending without going banko at some point. If it starts to look that way people will be liquidating the TBills.
Those rich as fuck folks pay little or no taxes with their financiers, Tax consultants, foundations, multinational assets and cheating. Obama will only be successful at getting to the medium rich folks.
If the govt really, really wanted to raise taxes on rich they’d put a limit to the amount of write offs those sick fuckers can donate to charities like the Red Cross.
See, really rich people are VERY generous, only to impress their friends. They donate millions to charities.
If you want those revenues without raising taxes on the people who are already “paying their fair share”, put a cap on the write offs to charities.
Charity donations deal with estate planning Fly, don’t be to negligent on the info.
I think there is a general conflation between wealth and intelligence, in this country, and, old money, like aging parents, always think their take on the world is still relevant and that they deserve their wealth more than the newcomers. Sometimes this has been true, the early American capitalists, the new money pre-1900 were a bunch of greedy bastards with no decorum, while, being wealthy because your great-grandfather who’s been dead 50 years makes no one worthy of such waste.
Many wealthy people are very intelligent, just like many dirt-poor people are. You can follow the money all you want, but it won’t lead us to a sane market based on real value, no matter how oblivious the mentally unendowed rich have become to this trend.
Rich people are much smarter than poor. I’d say, on average, people living in well to do areas are 3x as smart as the person living in the housing tenement.
I agree. There are many smart people who lack intelligence. With smarts one can calculate well, scheme and rise to the top based on strategy fueled by a will to win.
I’m just saying, these smart people who live in palaces are more suited to the tenement societies, on average, and the highly intelligent trapped in tenement residency deserve a palace and a moat.
Having said that, poor people can become rich and the ones that become rich do not live in housing tenements.
Very impressive insights, Dr. Fly. Your post from last night, titled, “Four More Years”, was also amazing. I will definitely keep copies of these posts to reflect on in the future.
Meh
Disagree. The rich are a very small % of the economy. Taxing them would mean chump change and their consumption is just as irrelevant..
Without a middle/upper middle class this economy is toast.
I don’t believe in taxation, so we agree. I am just pointing to government inefficiencies, when they bitch about tax havens.
Please disabuse yourself of you Fox Noised information:
The top 1% average $1.9 million in income EACH. There are about one million of these, so their total income is $1.9 trillion. If their income was cut back to $600,000 a year, and the $1.3 trillion saved was used to create jobs, we could create 43 million $30,000 per year jobs. Or that $1.3 trillion could be used to increase the wages of the bottom half of our work force – 60 million workers – an average of $20,000 per year EACH!
$600,000 per year is $50,0000 PER MONTH. How does any sane and rational human being need more than that?
The top 1% “job creators” don’t seem to realize that their excessive compensation sucks our economy dry, destroying demand and making a supply-demand economy non-functional.
Or if they DO realize it, they are not merely greedy: They are criminally insane.
Dude it’s just paper. Listening to some of you talk you’d think rich people were hoarding food.
Also your #’s are wrong, because what you forgot to mention was that doing that to the rich would create all those jobs FOR ONE YEAR.
After that I’m guessing they’d all be gone because the government would build fucking windmills and stuff.
And who would administer these brilliant jobs programs and create this work?
You oversimplify things. And cut the “Fox News Is Warping Your Minds” bullshit. In the real world, Fox News rambling marks you as a sap and gives people sufficient heads up to avoid you – don’t isolate yourself
Reread my post. They now average $1.9 million INCOME PER YEAR. Year after year (indexed to inflation X 3 or so).
If you cut this average income to $600,000 PER YEAR you would have the saving EVERY year and the newly created jobs or the $20,000 higher pay
for the bottom half EVERY year- year after year.
And where did the clueless poster get his information that only “chump change” is available from the top 1%? Certainly not from a VALID source. But from nutcase sources such as Fox News, Limbaugh, Glen Beck or Hannitty.
The argument is fallacious. Odds of reinserting that $1.3T back into the economy via the sticky fingers of the federal gubbamint are less than the proverbial snowball. The coin would promptly be dropped into debacles such as Solyndra and from there, wind up the hands of 1%’ers who are friendly to the current administration, never to be seen again. It would be redistribution of wealth but not where you suppose/wish it would go.
Now….if said highjacking of personal fortune would be guaranteed to be spent on valid infrastructure jobs such as piping natural gas everywhere, fixing our electrical grid or expanding internet service in the same manner as the old Rural Electrification act then I could at least stomach the thievery. Doesn’t mean I think redistribution is right though.
You state – “They now average $1.9 million INCOME PER YEAR. Year after year (indexed to inflation X 3 or so).
If you cut this average income to $600,000 PER YEAR you would have the saving EVERY year and the newly created jobs or the $20,000 higher pay
for the bottom half EVERY year- year after year.”
You are assuming that these folks, if taxed more as you hypothesize, will continue to work hard enough to generate $1.9 million while being left with only $600,000. If they stop working that hard (due to no reward from your higher tax rate) what happens to the differential between 600,000 and 1.9 million?
My proposal is that the 1% VOLUNTARILY accept an average of $600,000; and pay their workers $20,000 a year more (sixty million of them)
so that much-needed net aggregate demand in the USA economy SURGES –
eliminating poverty and unemployment.
If they do not do this VOLUNTARILY- I propose we tax them at 110% on the amount above $600K,
which should provide sufficient incentive!
I repeat, you are assuming people will work just as hard for less money. This is contrary to human nature and will not work, no matter how you look at it.,
The vast majority of the top 1% do not “Work hard”.
Just exactly what do they do that they “would do less of” for $600,000?
Most of the Top 1% are useless heirs and bankers who don’t do a lick of work anyway.
What is Jamie Dimon or Romney’s contribution to America, that couldn’t be accomplished by them or someone else for $600K?
This entire conversation is irrelevant. Back in the old days poor people had to work. The USA did not outsource the picking of lettuce. Not everyone can be rich not everyone can get foodstamps. The math does not work. Think about it.
Before you 0 dicksuckers go crazy. The fake was a farm kid that moved pipe stacked hay bales and worked. The lie is the college con. Sorry ghetto children the degrees are worthless. Not everyone can be a lawyer either.
Agreed
Not true. Only 6% of America’s millionaires are heirs.
The old guard has been replaced.
Sorry but 600k doesn’t even pay staff salaries. You have no idea how the economy works.
Absurd redistribution argument there pal.
I will not take money from intelligent people and give it to morons for no reason.
Tha fucking rube was arguing that all income over $250k should be taxed at 100% (and then amended to $350k). This proves 3 things:
1. He is a piker
2. He has no clue how the economy works.
3. He is to be put on the ‘pay no mind’ list.
Fly, you should know that. “Staff salaries are not paid out of AGI or taxable income.
The $600K is net of costs.
You realize these people have 30,000 dq ft mansions, annual yacht upkeep of over $1mill, planes, etc?
600k is a fucking joke. These fuckers are making 50 mil per annum. You expect them to lose their homes and property so they can “hire” some useless misfit to make something no one will buY?
Where were you educated, North Korea?
I want them to LOSE their fuckin mansions if they can’t keep them up on $600K.
Those who can’t adjust to living on $600K are criminally insane. They can be slapped into a nursing home or an asylum for $100K per year. Tax deductible, of course.
Have you given any serious consideration to the Fed disappointing next week? Seems like its hand is forced, and it certainly has tipped its hand. With that said, I can envision a scenario in which the Fed disappoints and everyone is caught off-guard. Have to think we don’t fall too far if all Ben does is repeat the statement that he’s willing to do what’s necessary, given that he actually would ease further in December or thereabouts, no?
It’s called Quantitative Teasing.
Of course. I intend on selling before fed
A lot of people can sure afford to buy iPhones and eat out though. From my middle class perspective, we are doing quite well.
Fly, previous blog you mentioned micro caps. Typically, isn’t the micro cap move the last area in a bull market?
Yes. I do believe this is speculation time. It can last awhile.
Another move that precedented interim tops since the 2009 bottom were when the “value” sectors start running up faster than the QQQ’s. This has been happening the last few weeks as large and small cap “value” ETF’s are smokin like high growth momentum break out stocks. I am slowly adding some puts to marry my longs.
47 million of the rich as fuck nouveau are collecting food stamps. The morning paper notes Obama’s daughter’s boyfriend makes more money making pizza than at the pay he can get with his college degree. Right. Probably chats up his gash with a free iPhone 3 or 4. He should pose for a Picasso drawing. Oh, so should your beloved president.
Funny you should say that, I just last night told my wife If Obama gets elected again Were gonna hide our money and collect food stamps. If he’s dishing it out I’m gonna make a grab for it just like the lazy fucks that wont get a job or lay down their money to make more money. Not Sure how to hide the boat and the Houses
Zuckerberg is a PRICK!! I hate that guy. There I said it!
I think Fly’s post and the comments are thoughtful. Thanks to all.
My view- Growing or retaining wealth involves decision making, and this is impacted by intelligence.
A fool and his money are soon parted.
Of course if one has billions, extravagant personal expenses are comparable in significance to the fuel exhaustion rate of the Sun.
The tenement man can make millions dealing drugs, drive and determination can outsmart the intelligent man. That’s the beauty of America, you don’t have to be from a rich family or have the right connections in order to make loads of cash. For instance a used car salesman or a Pakistani gas station owner can make more than a molecular virologist.
The tenement man does 20 years in prison for his enterprise.
The banker gets a severance
BAM!!!
No politician has the balls to say any of what you people have spoken in this thread.
As Captain of The Royal Kings Guard in the V.Kingdom, we request a blog and analysis on said subject matter from Sir Republicat.
“Doesn’t have the balls”? Ha, that’s giving them way too much credit. Politicians do not have any INCENTIVE to say what is being said in this thread. The status qua suits them fine and the retarded electorate votes against their own self interest so very consistently and often that I wonder if fluoride in the water is in fact dangerous.
Fly, you need to work on my yacht.
The people making 50 mil per annum create their own micro economy all around them. I don’t think many yappers could man the helm and continue managing the motherload without self destruction. Thats why lions don’t wear rollerblades, and camels don’t wear thongs.
Headlines like this make me want to buy more. http://news.yahoo.com/wall-street-week-ahead-nice-rally-while-lasted-233746573–sector.html
Interesting article. There was no mention of China’s 137 billion dollar stimulus plan however, that certainly has to have a huge positive effect for stocks!
We will know on Monday if the materials sector continues its rally from Friday.
Logic would dictate that devaluation, or dilution, of a nation or currency zone would weaken their notional value and strengthen counterparty currencies.
I find the assumption that USD will weaken, as well, to be flawed in its reasoning. The USD, among others, should strengthen on the spot market; thus, this punches a whole in a stronger US equities rally expectation.
But… . We’ll see. As LeFly says, the books are being rewritten (with this new era of centralization controls and a “good by” to free market capitalism).
JTU, China had been handing out the stimlus projects all week, market yawned. Only when there was this huge stupid short squeeze on the euro after Draghi press conf was the talking heads looking for reasons to justify the pop in the commodity plays (which they do everytime QE is bantered around). On Wednesday last week , all the news of the bond buying plan was already leaked but no one bought…the squeeze was on Thursday cuz too many shorts in the eur/usd trade. If these Projects made a difference in China, then why didn’t the Shanghai Future market pop on the news ala 2009 style??? FWIW, this EU plan has a lot of Conditions on buying the bonds, and I agree with Soros, it cements a Creditor/Debtor division of the EU which will destroy it. Also, I am watching that German Con Law Court this week, imho, they should grant the injunction because the moving party will loose any remedy if ESM funds are put out, heck the actual case on it is in 2013..Court should give them a chance to be heard. If there are any other Esq’s in the house I would love to hear your take…Chess, Trader Caddy?
Big week in Fx to be sure.
A friend of mine was friends with this women who had 26 Estates. She was so paranoid that she trusted no one…she thought everyone was out to get her, and no one was truly her friend. IMHO, we hit a certain level of wealth which we have our basic needs taken care of and can live our lives with complete freedom, to me that is the perfect spot..and true happiness. Most people I have met over that point, aren’t much happier at all, and a lot are over stressed and pretty depressed…for Pablo Picasso, I did like his dirty stuff in the late works period..but agree, a lot of his work looked like Fly’s Chart Art he does.
The lady with 26 Estates(whatever that means) had every reason to be paranoid. Paranoia as an affliction does not mean one is not a potential victim of liars, thieves, pimps, assaulters and stock traders.
Estates not in the legal term, I was using it to describe her very large pieces of property…most she never visited…and I would put stock traders and finacial advisors ahead of pimps..More Money, More Problems.
Or actually I should say Mo Money Mo Problems.
Excellent read.
How about a flat 15% tax on everybody above the poverty level including corporations untill we get out of this mess.that way everybody has the same skin in the game and while we are at it a 15% reduction on every government budget
At least Fly is honest and says that he wants to keep all his millions to himself and doesn’t care if some of his fellow citizens are starving. No bullshit “economic theories” to try and justify his actions.
The rest of the posters on here are fucking lunatics. They have no clue about what makes people tick.
um, no