Reader's Respond to Stimulus Spending
In Case You Missed It
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Happy Thanksgiving! I hope you've been enjoying the festivities surrounded by loved ones (and that you're over your food coma).
Last week, I wrote about the misallocation of federal stimulus funds in Massachusetts and I received a lot of really great comments from readers. I'm re-printing some of the best below. Enjoy!
If you missed last week's issue, you can read it here: http://www.cabot.net/Issues/CWA/Archives/2009/11/Misallocation-of-Assets.aspx. You can also add your own comment by replying to this email or leaving a note on our Web site.
Elyse: Thank you so much for writing that. It brought tears to my eyes. Doesn't seem fair but that is the way it is. Nice to take time away from trying to make money to think about the poor.
East Brunswick, New Jersey
I think spending like this is scandalous. I hope Massachusetts re-allocates these funds. Thanks for pointing this out.
Although I have empathy for those in need, I feel it is something everyone should have to go thru. In 1985, I went thru bankruptcy, lost my home and my marriage and slept on my parents' sleeper sofa for over two years thereafter. I vowed to never be broke again. Instead of working for a normal eight-hour job, I worked at my own limo business where I could work 12 and even 15 hours if I wanted to and I did.
I also learned to save 20% of what I made until I had at least two years worth of money and then keep saving 10% there after.
And I only put it into BONDS, between CDs, Treasuries and some Conservative Bonds.
When I retired in 2002, I had ALL my Savings and then some, while many of my friends and siblings lost quite a bit of theirs.
We then, thanks to Cabot, moved out of Treasuries and into global and emerging markets. We are very happy campers so far this year, up over 21% YTD.
Thank you Cabot,
You really are naive inasmuch you do not understand the meaning of "pork" when Congress passes a bill. Every lobby has their hands out for its piece of the action. We have met the enemy and they is us because the American public puts up with this reckless spending.
Thank you for your comments concerning wasted stimulus money. They recently have added crosswalks and lights for pedestrians onto curbs that do not even have a sidewalk. They moved some of the ramps from one area of sidewalks here in Georgia, to another area on the curb, four feet away. They are just out there spending and wasting money. Do you think they could have increased social security benefits for the elderly? How about bringing the troops home, as he promised, and saving those funds? Oh well, that is another subject altogether. Great letter.
Always a pleasure to read Cabot Wealth Advisory. Personally, I would have had David Williams say "Give the money back to be used for the intent of the legislation."
St. Augustine, Florida
You recently wrote about the stimulus fund and how it was being spent in Massachusetts. I enjoy your newsletters and do my best to take advantage of the advice you offer. I agree with many of the things you write but I have to disagree with your assessment of the stimulus fund. Yes there is huge waste and a most of the money is going to unnecessary projects. I would love to see more money getting to worthy causes like the food bank you mentioned. The best way to help your food bank would be to keep the government out of the picture. The American taxpayer is the solution to the problem. If we kept our own money, we would create more jobs and no one is more generous than the American people. Fewer people without jobs would also mean fewer people needing the food bank. I have never seen a single government project, from my small town to the federal government, that wasn't full of wasteful spending. If we don't give them the money to begin with, they cannot waste it.
Atco, New Jersey
Sometimes you read someone else's writing and, to the extent that the writing captures your feelings on the subject, you feel as if you could have written those words yourself. This is how I feel about "A Misallocation of Assets." Kudos for a great article!
It makes you want to vote them ALL out of office, doesn't it? Happy Turkey!
Seems to me it's time to implement the two-thirds rule on all spending and appropriation bills in both houses of Congress. In other words, it would take at least two-thirds majority vote in each house of Congress to pass any bill spending the "people's" money.
Have a happy Thanksgiving holiday.
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In case you didn't get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, I have links below to each issue.
Cabot Wealth Advisory 11/23/09 - The Milk Racket
On Monday, Timothy Lutts wrote about the economics of the milk industry in the U.S., how the pricing guidelines affect consumers and what could be in store for the future. Tim also discussed the stock of a Russian milk producer that's positioned to grow with its country's economy. Featured stock: Wimm Bill Dann Foods (WBD).
Cabot Wealth Advisory 11/24/09 - Oldies but Goodies
On Tuesday, J. Royden Ward wrote about World War II and the Great Depression, focusing on the changes that came out of them and the important lessons learned by those who lived through both. Roy discussed several old companies that are still some of his favorites. Featured stocks: PepsiCo (PEP) and Procter & Gamble (PG).
Cabot Wealth Advisory 11/26/09 - The Characteristics of Winning Investors
On Thursday, Michel Cintolo wrote about how his recent trip to a Patriots football game made him think about the characteristics of winning quarterbacks and how they relate to the characteristics of winning investors. Mike discussed the small number of new lows in the stock market, which is a very positive sign. Mike finished by writing about a true bull market stock. Featured stock: Franklin Resources (BEN).
Until next time,
Editor of Cabot Wealth Advisory