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Morgan Stanley On America's Biggest Challenge: Entitlement Spending
There are some who will take up hundreds of pages to explain something as simple as the complete bankruptcy of the US entitlement program. Others, like Morgan Stanley in this case, present it succinctly- why write and write and write when a one page income (well, loss technically) statement will suffice? In a presentation, oddly focusing on Internet Trends, the MS team puts up an appendix page that probably should make the inbox of every politician in America. In a nutshell, when analyzing the math of entitlement spending, even as revenues flatline (at best), and decline (realistically), the expenses are quite literally growing geometrically. At this rate of deterioration, the Loss on the entitlement P&L will be at ($3 trillion) a year by 2013. For those who don't buy this estimate, here is a refresh: it was +$128 billion in 2001, (318) billion in 2005, and ($1,413) billion in 2009. Then there are some like former Western Asset Management personnel, who are so confused by numbers so massively negative, that they #Ref out their excel spreadsheets, and tend to ignore them altogether. Which brings us to the topic of the night - those who find the most efficient way to short Western Asset Management (and its retention policy of never hiring those proficient with positive and negative integers... forget about floating point) will win a free Zero Hedge hat.
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This is the Pete Peterson campaign to:
lower taxes on the rich,
increase subsidies to the banks
and renege on social security and medicare/medicaid commitments
Pete Peterson has been talking about these problems for at least 20 years. In his meeting with Bush after the 2000 election, W told him the goal of his administration was to defund the US government forcing it to kill all entitlement programs and all pensions. The elites goal of starving the beast has almost come true. Obama is finishing the job for them.
This is how I spell "entitlement": T-B-T-F
Western Asset Management is owned by Legg Mason, ticker LM
I find it Ironic, that Morgan Stanley of all institutions are bringing this up, and posting it...........only JPM/GS would be worse.
Thanks to all of you ZHers who contributed to the lively debates above. It's good for the soul as well as educational. Seems like some agreement of terms would help alleviate the conflict, however. If all participants could agree on the terminology used then the level of vitriol could be lowered. Sort of like the 10 blind guys describing an elephant, it depends on one's definitions as to how one evaluates the world, politics, economics, and history. Just to head off the junks: I'm not saying anyone is "blind", just that there are variants in perspective.
There are so many wrong "facts" being tossed around here.
The Social Security system is failing because it has never been modified to account for demographics shifts, massive increase in benefits and the greying of America.
Originally you had 48 workers paying for 1 retiree. Your expected lifespan was 62 and you got to retire at 65. The chances you would collect SS for more than 5 years was so low the government was making money hand over fist.
Medicare could never be a viable system for similar reasons. Add into the mix the massive increase in costs above the inflation rate, super expensive procedures being approved, drug costs off the hook..etc. The other huge problem is the massive corruption due to the politicians being in bed with the medical industry and no one willing to agree to rationing of care.
If you want to know who's fault it is, look into the mirror.
And yes the Korean and Vietnam wars also contributed to the problem. Every penny put into SS and MC went immediately out the back door to be used in the general fund. Every penny wasted for war could not be used for other expenses.
If you want to know who's fault it is, look into the mirror.
Bingo. Most of our current problems' solutions would be found if more people started here.
The ultimate hypocrits are retired diabetic Teabaggers screaming hands off SS and Medicare while riding their Hoveround with twin oxygen tanks.
Reality check:
Look up the Stern Gang, and see the proposal they wrote to ally with the Nazis. Then, go buy this book and look at the primary source materials uncovered:
http://www.amazon.com/51-Documents-Zionist-Collaboration-Nazis/dp/156980...
Facts are stubborn things.
Is Morgan Stanley worried about "entitlement" spending?
Why Morgan Stanley is not worried about MILITARY spending?
More than likely because military spending protects their interests. Not that I agree with it.
People are living too long, collecting too much pension and social security. Easy solution: Only people over 70 can go to the middle east to fight and die.
The youthinasia will perform the service.
Then legalize abortion up to 16, just to cut down the population.
Problem solved:>)
never fear implicit, your government is addressing this problem even as you type. . . by cropdusting the populations, thus ensuring that the older you get, the more poison is accumulated in your system - voila! longevity rates will plummet!
as to your other brilliant idea,
an easier solution: upon male puberty, use the sperm banks to save your seeds, mandatory vasectomies, and only upon MATURITY would impregnation be encouraged. . . then y'all can f**k around just as you do now, but females (and "taxpayers") wouldn't have to carry the burdens of your irresponsibility, hmm?
it's not rocket science.
Wow! I've always said that in private, but took guts to say it in public (about the sperm). I would add, not only upon maturity (how do you define that?), you would need to prove you have the parenting skills, financial resources, etc. to be able to breed.
I really hope you aren't serious
nahh, it'll never happen, natural selection & government "intervention" will trump in the end.
but there's no need for any laws when a COMMUNITY raises its standards and everyone in it learns to value humanity. . .
it gets old.
the solution is always that it's a problem with female fertility, not male fucking without "protection."
fact: one pregnant female is outta commission for at least 8-9months, and more if she breast feeds. meanwhile, dudes keep spreading their seeds.
of course, with the barium / aluminium and other filth being sprayed on the populace, fertility rates will go down. as will lifespans.
to answer your question about how is "maturity" defined - well, if you have a secure homespace, a stable relationship over time, a "gameplan" and some savings, you MAY be mature enough to consider bringing a human into the world to CARE for over a couple of decades of raising.
Oh my goodness; sexual activity is men's fault, so the solution is to sterilize men? You're right; your statement isn't rocket science at all.
So how many eggs do you really need? Why not do the same with women? Good grief, do you really believe what you wrote? If you do I feel genuinely sorry for you. Living with that much hate will eat you up; it seems to have progressed pretty far already.
What we seem to be seeing are the death throes of the [corporate and individual] Welfare State model of government. A couple of mathematical realities can expose the true picture. Systemic debt cannot grow forever faster than the economy's ability to pay. Debt has been growing faster than GDP for at least several decades. This cannot and will not continue. The other "inconvenient truth" is that the more the population wishes to indulge in empty "alternative energy" fantasies, with its current easy-living life style, but continues to make domestic extraction and production of high density energy resources costly or impossible - read petroleum, natural gas, and nuclear - the longer the structural trade deficit persists. And, unfortunately, a trade deficit will mathematically produce one of both of the following, private sector debt buildup or federal fiscal debt buildup. It cannot be otherwise. Is the Keynesian Clown Posse, aka our beloved political class, capable of seeing these simple facts? Your guess...
The Posse and the Elite know exactly what is going on. The financial apocalypse was predicted well over 30 years ago. It is a slow motion trainwreck that will be allowed to happen. The biggest problem is the pure stupidity of the average person. The Sheeple believe they are entitled to a good life and a comfortable retirement even though most are in debt up to their ears and have no savings. The Elite and their sock puppet minions will make sure the Sheeple will pay for their stupidity. The Elite know to keep the active duty military and police semi content. In the worst case scenerio all the Elite need to do is give the military/police food and a warm place to sleep. The Sheeple will be in for a surprise if they get out of hand.
The question you need to answer is how useful will you be to the Elite if the SHTF. The vast majority of people are useless eaters who don't contribute to the Elites bottom line. You better have tangible skills that will be useful in the future. The Elite have more than enough help to mow their lawns.
This is one of the best threads in recent memory on ZH. My sympathies are with downwiththebanks, but minus the ad hominem attacks, grandstanding, conclusion jumping, selective fact mining, labeling, and name-calling it is a great exchange of ideas. There are some seriously smart and well-educated folks here. Bravo!
EURO chart indicates a move soon :
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
Tyler, Never apologize -- it's a sign of weakness.