By Edward Leone Jr. DMD MBA CFP RFC
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The Wall Street Journal Market Watch on September 18th summed up our economic status in a few sentences. “The majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” National debt is at $16 trillion and the top 25% of wage earners pay 87% of all tax revenue. This is not sustainable. “Our entire fiscal and monetary policy is now based on one simple axiom: What we cannot tax, we borrow, and what we cannot borrow, we print.” What is your sense and felling over these statements?
I happened to pick up on a veterans’ benefit of which I am sure not many are aware. A pension is available to qualified veterans to cover the cost of long-term care. If you have the need, check it out. While we are on the subject of health matters, be aware that open enrolment for Medicare begins on October 15th.
US.News writer Philip Moeller tells us about a recent study which in the journal Health Affairs shows that the level of education is a predictor of longer life spans. Such factors as healthier life styles, higher incomes, better ability to handle stress, better social position and better management of chronic diseases are a direct result of higher achievement in education according to the study. Hum!!
Insurance experts are telling us to reassess our home owners coverages. Although the market price of homes has declined by 35% since the market peak, the cost to rebuild a home after total loss has increased 40%. Check you dwelling limit. You want full replacement cost of the home and possessions. Take stock of your possessions and take photos of the property being insured both inside and outside.
News from the Euro Zone has been mixed. One day there is agreement on a fix only to find negative discourse the next day. The Euro mess is affecting the global economy. The EU is continuing to experience stagnation economically with accelerating industrial decline and increasing unemployment. This status has causes export markets to the EU to decline causing the global economic head winds in both established and emerging market economies. The EU’s attempt to impose a common currency on sovereign nations without alignment of financial and fiscal policies of members is a significant problem for the continued existence of the EU. Global leaders need to come together on a solution here. When will the next step initiate?
The US equity markets are performing in a positive fashion to Federal Reserve actions of late. Prices are up or is it that the currency on which equity values are based is declining in value? Commodity prices are reacting to the value of the dollar. Why not equities also. What will equity markets look like when our government finally strengthens the dollar?
For The Record:
DJIA 13,515.11
NASDAQ 3,113.53
S&P 500 1,444.49
Suggested Reading: “Wealth and Poverty” by Steve Forbes
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