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$105,637 for Me, $80 for You!
$105,637 for Me, $80 for You!
Isn't this economy FANTASTIC?
It sure is for those of us in the top 1% (1.4M) - people earning over $352,000 in annual income. We made $105,637 more Dollars in 2010 than we did in 2009 - thanks in large part to the Fed's fantastic policy of printing more and more money, which lets us borrow cheaply or invest with leverage in inflating equity as the Dollar collapses.
Sure the Dollar collapsing hurts everyone - but an extra $105,637 keeps us ahead of inflation, right?
I'm still jealous of course (good Capitalists are always jealous), as the top .01% (14,000 people) - who earn an average of $23.8M, were able to add another $4.2M to their annual incomes in 2010. That's 52,500 TIMES the average $80 increase earned by the bottom 99% (thank goodness we're not one of THEM!).
That's right, somehow, the riff-raff in the bottom 99% managed to grab 7% of the Nation's total increase in income - clearly Congress needs to make immediate changes to prevent this travesty from happening again!
Steve Rattner has a different opinion, saying: "The only way to redress the income imbalance is by implementing policies that are oriented toward reversing the forces that caused it. That means letting the Bush tax cuts expire for the wealthy and adding money to some of the programs that House Republicans seek to cut. Allowing this disparity to continue is both bad economic policy and bad social policy. We owe those at the bottom a fairer shot at moving up."
That's Commie talk! If we allow the bottom 99% to make a fair share of the money, they would make 5% more and you know they would only SPEND it on stuff they need TO LIVE. Then our companies would have to provide more goods and services to the bottom 99% and jobs would be created and we, at the top, would have to WAIT for the money to trickle UP from the bottom as only companies that do a good job servicing the bottom 99% would increase in value.
Even worse, we may have to WORK (a four-letter word) to provide goods and services for the people who have money in order to EARN (another four-letter word) our Incomes. That's no fun for us at all!
We like it when we get ALL the money and we create just the jobs we choose by buying really expensive cars or really expensive homes or really expensive ($8.50) burritos at CMG because you know an $8.50 burrito creates more jobs than four $2 burritos that poor people would buy at Taco Bell - it's a Rich Person's FACT!
My $1M, 6,000 square-foot home created 2 more jobs than the standard $250,000 2,000 square foot home and sure, you could argue that 4 could have been built instead of one for the same price and that 16 people could have been housed instead of 4 and - oops, what was my point going to be???
Of course it's not just flesh and blood people in the top 1% that hog all the income - top 1% Corporations are also choking off the bottom 99% by sucking up all the money.
On the right, there's a chart that illustrates how AAPL has GAINED 8% in earnings since Jan 2011 while the ENTIRE rest of the Technology sector has LOST 3% as a group.
AAPL employs 60,400 people while the rest of the sector employs (employed) millions but, to be fair to AAPL, it probably employ millions of Chinese people, so it's all good somewhere on the planet.
The fact that the bottom 99% of the Nasdaq 100 is actually going DOWN in earnings per share doesn't stop investors from taking the AAPLdaq to fresh highs for the century but we're bearish on the Nasdaq because we feel that IF AAPL falters, the crash is going to be SPECTACULAR. Even if AAPL does well, what happens when the sheeple who sampeded into tech get the Q1 earnings reports and discover that AAPL is one of the only positive stories out there?
Last year, the Nasdaq rebalanced AAPL from 20% of the index down to 12% of the index but now AAPL is almost back to 20% again, as it completely shreds all competion and grabs up those consumer Dollars before they can accidentally trickle anywhere else. Even in the S&P 500, AAPL is now 3.8% of the index, well ahead of #2 XOM (3.3%) and #3 MSFT (1.9%). AAPL's 33% gain (so far) has boosted the Nasdaq and the QQQs 16.6% and added 9.6% to the entire S&P 500.
The problem has become so acute that several major analysts are delivering clients two sets of market reports, one with Apple included and one "ex-Apple." The chief equity strategist at UBS AG (NYSE: UBS) creates two versions of his S&P 500 outlook reports; so do analysts at Goldman Sachs Group Inc. (NYSE: GS), Barclay's Capital, Wells Fargo & Co. (NYSE: WFC) and Morgan Stanley (NYSE: MS). For example, they point out that the S&P's fourth quarter 6.6% rise would have been only a 2.8% gain ex-Apple (reflecting Apple's 40% gain since Thanksgiving) and profit margin growth, which registered a 0.05% gain in the fourth quarter, would have actually been a negative 2.2% ex-Apple.
Oh well, that's Capitalism, isn't it?
AAPL does to bottom 99% of the Nasdaq what any top 1%'er does to the bottom 99% of the American people - they make more and more while the bottom 99% make less and less, or work harder just to stay in place.
As long as you look at the WHOLE basket - it looks like things are getting better for the group - only a closer examination shows you how disparate the incomes of the top and the bottom have become over time.
Of course things seem just fine if you are in the top 1% and they can only get "better" if you make more money and that means - very simply - less for the bottom 99%. When do we have the ideal amount? When we have 100% and the bottom 99% has zero? We already have 25% and in 2010 we captured 56% of the income gains so our diproportionate share is, indeed, growing even more disproportionate every year.
Don't you think we should have a stated goal for how little we want the bottom 99% to have? We've already put them below the 50% line that held in the great depression.
Actually, there's a funny story there because the bottom 99%'s share of the income bottomed out in 1927 and that was 3 years BEFORE the US Economy collapsed. One might say we over-did it back then as the resulting Depression impacted the incomes of the top 1% as well but, as noted above, the top 1% have their own top 1% and, every once in a while, it's good to purge the bottom 99% of the top 1% because those 14,000 people have never had it so good.
While the bottom 99% may complain that they only got 7% of the income gains in 2010 - the bottom 99% of the top 1% also got screwed, capturing just 1/3 of the gains for 1.4M while the top 14,000 took 66% of the pie.
Just like in 1927, the stock market is roaring as the rich get richer and trickle their increased earnings into stocks and commodities, with commodities being the most fun as rich people get to buy things they don't need like bars of gold or tankers full of oil. They SPECULATE that the prices will go up.
Of course, when people who don't need a commodity take large quantities of the commodity out of circulation with no intent to consume it - they create an artificial shortage that drives the price of that commodity higher - it's BRILLIANT!

It ends very badly, but what a ride! No one wants to miss out on the rally, regardless of the consequences and the top 1% have LOTS of money to throw into the markets and, when your income jumps 20% a year - you do tend to want to toss a little more cash into the market and that's how "hot" money flows in.
That then is followed by what Guy Lerner refers to as the "dumb money," - four groups of investors who historically have been wrong on the market: 1) Investors Intelligence; 2) MarketVane; 3) American Association of Individual Investors; and 4) the put call ratio. This indicator shows extreme bullishness.
As stated by Lerner last week: “If we look at the “dumb money” indicator in figure 1, we know that as long as the indicator stays above the upper band (see green arrow on chart), prices should continue to go higher – albeit in a grinding fashion at this stage of the rally.
I had made a similar observation in Friday's post, saying anything other than a move up into Friday's end of quarter would make us very bearish. We had added some bullish plays in expectations of this but yesterday's move up was so sharp that we took the opportunity to press a few bear side bets - just in case we don't get another crack at yesterday's highs.
If we do head higher into the week's end, we still plan to short some more - and if the markets do hold up into April, we'll be happy to capitulate and add more bullish trades but, for now - I'm just not seeing the internals to support these levels.
We've exhausted our 10 Bullish Trade Ideas from our 3/14 post and we took the 50% profit and ran after just 2 months on our "One Trade for 2012" (BAC) - although some of our trade ideas are still playable and will do very well if Bernanke comes through with April QE3 but now we're going to look at MORE AGGRESSIVE trade ideas if our new 13,200 goal on the Dow holds up along with 1,420 on the S&P (our 2.5% line). We keep pressing our levels because - IF this is a real bull market driven by underlying inflation and Fed money printing - then we expect it to go up and up and up. Any signs of faltering should immediately turn us more cautious - you DO NOT want to be the last man to leave this Ship of Fools if it starts to sink.
So we, in the top 1%, don't fear inflation - nor do we fear a devaluation of our currency because we get to borrow that currency cheaply and leverage it up into massive gains against relatively small moves in the market and, best of all - we get to pay the bottom 99% people the same wages we paid last year, perhaps even with less benefits, using that rapidly devaluing currency in exhange for your increasingly productive labor. No wonder Corporate Profits are at record highs (even if it is just the top 1% of Corporations)...
God bless Capitalism!
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You are ignorant about almost everything you're arguing about. I've worked cardiac anesthesia at three major medical centers around the country and have never seen anyone supervise more than one cardiac case at a time. The only places that might have four cardiac cases going at once would be major centers for excellence like the Cleveland Clinic or Texas Heart...at those centers, it's typical for one-on-one coverage. I'm giving you facts. You are speculating about what's possible--please give me one concrete example of where this has ever happened. Typical reimbursement for a cardiac case that lasts 4-5 hours might be about $750 dollars. I work in one of the busiest OR's in the country and not one of my partners makes even close to 1 million dollars, in fact many make close to $300K/ year. I don't know what your area of expertise is, but you should stick to commenting on things that you have knowledge about. $1000-$1500 a day would be a typical salary not $1000/hour but go ahead and believe what you will....just don't represent yourself as actually knowing what you're talking about.
I can't give you a concrete example of someone supervising four cardiacs at a time, but I can assure you that supervising a cardiac alongside a couple of other simple cases does happen. As for the $750 you are straight up lying if you are saying that is the typical fee. Lord knows there might be some one off example of this but it is in no way typical. Anesthesiologists get more than double that amount of points just to start the case, typically. As for the $300K number--yes-- there are obviously anesthesiologists that only make this but they are usually the guys or gals that don't want to work long hours, don't want the call duty (therefore are penalized), don't want hard (undesirable) cases, etc etc. They are not the ones in it just to maximize their income.
Honestly I'm tired of this conversation because I have audited various practices and I know for a fact what various doctors make. What I honestly find disturbing is that you guys will literally bankrupt this country with all your bellyaching. I can't wait till medical care is 30% of GDP and you guys finally collapse the system single handedly.
Yup- Even general medicine. Think about how much time you spend with ancillary staff, NPs, PAs etc vs the actual MD. I am familiar with interventional radiology and anesthesia aspects and am amazed at the $$$. I nudge my daughter towards this path whenever I can... Money isn't everything, but it helps.
I just looked up average md earnings and the highest paid specialty is neurosurgery with average earnings of 366k. Guess it depends on where you practice.
What is the average debt of those MD's? How long must they spend living in slums while the complete their education? It makes a big difference when you spend 15 years working to educate yourself, taking on massive debt, before you even get to start the real job. In the meantime all those idiots who got there business degrees and their online MBAs are making rea cash and getting to invest it. Just but a few facts you have ignored. You really think the path of a success MD was easy? You are a fucking moron.
Yes they will accumulate a relatively large amount of debt. But so do MBAs. I think the biggest issue for doctors is that they get screwed in residency and the buy-in to a large practice means they get screwed for a few more years to get into a good practice (generally).
Can you quote where I said the path of an MD is easy?. I said no such thing because I don't believe that.
Yea I've looked at salary.com and other sites and they're nonsense. I know because I've audited hospitals and private practices, and I come from a medical family. If the American people knew what Docs were making they would puke their brains out in disgust. I can give you an example about neurosurgeon. The only one I know makes near $2million. Think about how much one surgery costs -- maybe $50K or $100k or $200K depending on the issue. And yes the surgeon keeps a whole lot of that.
Hhmmm. Based on an "n" of 1 across everyone who has an MD. idiot.
Perhaps you'd prefer this doc...(much cheaper!) :>D
The famous President Jimmy Carter speech in the 1970s, 'Inflation is Our Friend':
President Jimmy Carter:
« Good evening. ... Our economic system is screwed, blued and tatooed! We just have to face the fact that there is simply no way to fight inflation ... That’s why, tonight, I want you to try to look for in inflation, an entirely new word: Inflation is our friend.
For example, consider this: ... If current trends continue, the average blue-collar annual wage in this country will be $568,000. Think what this inflated world of the future will mean – most Americans will be millionaires. Everyone will feel like a bigshot. Wouldn’t you like to own a $4,000 suit, and smoke a $75 cigar, drive a $600,000 car? I know I would!
But what about people on fixed incomes? They have always been the true victims of inflation. That’s why I will present to Congress the 'Inflation Maintenance Program', whereby the U.S. Treasury will make up any inflation-caused losses to direct tax rebates to the public in cash.
Then you may say, "Won’t that cost a lot of money? Won’t that increase the deficit?" Sure it will! But so what? We’ll just print more money! We have the papers, we have the mints. I can just call up the Bureau of Engraving and say, "Hi! This is Jimmy. Roll out some of them twenties! Print up a couple thousand sheets of those Century Notes!" Sure, all these dollars will cause even more inflation, but who cares? Everyone will be a millionaire!
In my speech last week, I said that America would have to undergo an austerity program, but since this revolutionary new approach welcomes inflation, our economy will be free to grow, and we can spend, spend, spend! I believe the watchwords ... should be 'Let’s Party!' »
- President Jimmy Carter, as played by Dan Ackroyd on 'Saturday Night Live', episode 4, season 4
link please!
GD lazy belgians...
Is today groundhog day again? But post it again tomorrow for the seniors. Nobody under 40 even knws who Carter was. At least not a voting demographic doesn't.
ok, I give up, Who is Jimmy Carter?
(sarc)
He's a "famous" swamp rabbit molesting, malaise afflicted, peanut farming, turn down your thermostat sweater wearer, part time carpenter and diplomat.
In Belgium ;-)
What's funny is that you folks are hating on Carter, but if you look at the charts, things didn't go horribly wrong until Reagan took over and there after.
Carter was the best president to the bottom 99%, going back to Carter.
The reason that people think we have had prosperity and defend jackasses like Reagan is that Reagan started this money printing, let the Fed heat up the economy bullshit that is now unstoppable.He also ran huge deficit spending.
Yeah, things sucked under Carter, they usually do when you have to take your medicine.
What's sad is that Bush Senior actually did the right thing and was voted out because he raised taxes (which he should have done).
Everyone loves Reagan duh Sugar Daddy, he made us feel oh so goooddd again! Now we're dying of tooth decay.
Bush senior was one evil bastard. Followed by clinton, followed by his dufus son, followed by the reality TV spectacle we are suffering at the hands of today.
You seem...conflicted.
"Carter was the best president to the bottom 99%, going back to Carter."
"Yeah, things sucked under Carter, they usually do when you have to take your medicine."
It's generally accepted that Carter was a good guy, stuck in a position way over his head, hopelessly wrestling with himself. In other words, inept, weak, vacillating.
I can assure you, I am not conflicted.
The purpose of the tax code and taxation itself is to raise revenue for government operations.
Period.
It should not be used to reward or punish any individual or group. When you start down this path (using the tax code as a social weapon/tool) you wind up exactly where we are now, fighting amongst ourselves over the scraps flung over the shoulder from governments table. There is a reason the general population views "public employees" with contempt.
Now, a thousand acronym "programs" have been created to ameliorate the suffering of the masses, by the very ones who created the suffering, with each group fighting with the other group over nothing but table scraps.
Just like they planned.
LOLz......there it is again! Why doesn't everyone see? The solution to all this crap is simple: RAISE DEM TAXES!!! /sarc
BTW, Reagan didn't do squat about the printing presses. However, Paul Volcker (fed chair at the time, IIRC) cranked interest rates in order to SLOW the printing presses that were humming at raceway speed during your hero Jimmuh Cartuh's regime. Of course, that didn't stop the gubment from just borrowing even more, at higher rates.
Gotta lub that fed scam. Their end cannot come soon enough.
No waiting on Aisle 3.
Over on Aisle 3 is my booth, where you can already get a $5000 suit, $100 cigar and a $2 million car. At the same time, if you like.
Inflation is great. Especially with the magical way Congress UNFAILINGLY indexes taxes to said inflation.
StB
Unfortunately, in tomorrow's inflation adjusted dollars, the suit is from Value Village, the cigar is a stale White Owl from a garage sale, and the car is a Kia Rio - with an Ipod jack ! Praise God, AND PRINT THE PHONEY BALONEY FIAT PONZI PAER FASTER, FED MOTHERFUCKERS !!!!!