By l3wis

22 thoughts on “The Hightower Lowdown”
  1. Soooo not surprising…I’ve worked for some of the richest…and watched how the “system” works.

  2. I have learned the individuals in business willing to cheat, steal, and destroy people to climb their way to the top always get rewarded… The more inhuman, the higher the bonuses.

  3. I don’t know about that, Scooter. The more successful people I know got there by working hard and building up a good reputation in their profession, or by building their business smartly.
    It’s possible to join that top .01%, but it takes time and effort.

  4. Of course, none of my relatives are investment bankers on Wall St. or corporate executives.

  5. Or like the KOCH brothers get it handed to you by your father and use that wealth to mislead the public about the tea bagger movement.

  6. Once you increase your income beyond the “natural” threshold of living expenses, it is very simple to accumulate savings. People then want that money, they pay a fixed return for that money, and that savings increases and multiplies. Then the cycle continues over and over. The interest that is collected on the principal amount is considered income. I don’t find this article to be that big of a surprise. The tough part is building your income beyond the natural rate of living expenses.

  7. Valid point Detroit Lewis. Then the debate is who is to blame, the consumer or the provider. Is there no personal responsibility any more? No one forces individuals to live beyond their means. How many people live in a home they can’t afford because they want to seem adequate and successful for their family and friends. That is the real problem. People would much rather look wealthy than to be wealthy.

  8. Show me another system on the planet that’s ever created as much wealth in just under 250 years?

    And I’m not just talking billionaires, I’m talking people who work hard enough to make their kids’ road a little easier than theirs.

    All of that wealth has to go somewhere. And whether it’s spent, invested, saved or donated any of those ripple through the Economy in a positive way to make the pie a little bigger for everyone. That’s not theory, how do you think people sell so many $3 lattes when in Bangladesh that would feed your family for a day.

    Sure the Koch’s spend some of theirs on shaping Politics, but that’s their right to do so just like Ted Turner’s or George Soro’s. If that eventually puts us back on the road to a balanced budget, I’d say it was well spent. I’d also bet you can go to work for Koch’s and make 50K a year doing something most people pay minimum wage for.

    There’s a ton of wealth that will be transferred from the Baby Boomers to Gen X & Y. That is if it isn’t confiscated by the Government first. There’s a world of opportunity there if people are smart & brave enough to exploit it.

  9. In an environment where savings interest is 2% yet inflation is 6% and the dollar is losing value, the middle stays or goes lower.

    The rich are paper wealth from corporate equity or material holdings. They realize money can become devalued and the only way to get and keep ahead is with sheltered holdings and untaxable working gains.

    If you have wealth, keep it away from lawsuits or taxes. Example: Buy Silver ($6 in 2002, $20 now). Considering dollar’s down trend, you may soon be buying lunch with American Silver Eagles. They’re legal tender (untaxable appreciation), do not lose value, and not subject to market volatility like stocks and currency.

    If you’re in the middle and prefer to stay or rise:
    Look broke but live rich. Keep small amounts in cash and metals in out of state (or out of country) boxes or accounts. Apply for government assistance whenever possible. Keep income low and mostly unreported to stay in a low tax bracket.

  10. “The rich are paper wealth from corporate equity or material holdings.”

    Funny you bring that up, that is what the issue of the HL was about this month – how the rich have created wealth from nothing instead of actually making something.

  11. reply to Bobert – – It’s easy to fall into the trapp…and take advantage of all the perks that are unfolded and offered at that level..but thankfully…I leave before I get too caught up in it…and am just a lowly worker like the rest.

  12. One more comment…money makes things a bit easier to live..yes…HOWEVER…you cannot take it with you when you die. MUCH more important are good friends…challenging conversations (as in THIS blog), moments to experience and remember…

  13. Buy Silver ($6 in 2002, $20 now). Considering dollar’s down trend, you may soon be buying lunch with American Silver Eagles. They’re legal tender (untaxable appreciation), do not lose value, and not subject to market volatility like stocks and currency.

    According to your numbers, silver has appreciated 333% over the last 8 years. I’d call that some serious market volitility.

    The economy will come back eventually, and when it does people will drop their shiny metals for something that provides a better capital gain.

  14. Daizi46, I agree with comment #16. Money is only the score. It’s security but happiness is achieved otherwise. To much wealth and you spend your time protecting your money. Everything is a threat and you isolate yourself from others.

    Ghost of Dude:
    “The economy will come back eventually, and when it does people will drop their shiny metals for something that provides a better capital gain.”

    I hope your’re right. Historically, stagnant metals prices leads into a bull market/economy. Meanwhile, light your 420 with $20 bills.

  15. I hope your’re right. Historically, stagnant metals prices leads into a bull market/economy. Meanwhile, light your 420 with $20 bills.

    I prefer good, hand-rolled Dominican cigars.

  16. I’ll take a 420 or Dominican…a good cigar any day! Light’em up…that’s what I’ll be doin around 5:00 today! along with a good beer…

  17. Ghost of Dude
    “The economy will come back eventually, and when it does people will drop their shiny metals for something that provides a better capital gain.”

    That is a very true statement. Eventually, Gold and Silver will be a great short opportunity once the economy is on it’s footing again. But not yet……

    Found a great statement about gold prices in 1980 and the inflationary price in today’s dollar.

    “Despite gold recently reaching a new all
    time high of above $1,200 per ounce, gold’s high in 1980 of $850 per
    ounce adjusted for the CPI index equals $2,485 per ounce in today’s
    dollars. Once you account for how the CPI understates inflation, gold’s
    high in 1980 was $5,241 per ounce in today’s dollars.”

    According to this, gold is undervalued in this environment.

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