Random comment 7/3/14

Inflation is here. Check on your supermarket bills. The market should be adjusted to inflation too. For simple illustration, if the market increases its  value by 100% and the cost of bread also doubles, in reality, the market is flat (but Uncle Sam still wants to share with you the hefty capital gain).

The problem is excessive printing of money to drive the interest rate to zero. It encourages consumption but not production (unless the money is invested in factories and infrastructure). The money easing has to end some day and some how and the non-correlation of the market and the economy cannot last forever.

Talking about taxes, I paid a lot last year due to the Roth conversion. The poor want the rich and the middle class (I'm) to lose money in the stock market. They do not realize that without the market gain, we do not pay taxes that help them in welfare. It is funny that the parasites accuse us parasites. Yes, we do have parasites on the other end of the spectrum - those greedy bankers to name a few.

Some poor are not parasites especially those losing job,  due to illness, losing in investment... Our capitalism punishes us not to work hard, take chances... But, the generous welfare discourages us to work. I believe to share the wealth but we need to encourage and/or train folks to work.