[Rhodes22-list] Political - big Al delete - Brads economic question - However Big Al have considered that you opinions might be necessary to keep the young'uns in reality?
Herb Parsons
hparsons at parsonsys.com
Fri May 2 10:27:06 EDT 2008
Most people have very little understanding of economics even at a basic
level.
At my office, the owner of the company matches contributions to a 401k
program up to 3% of an employees earnings. A grand total of 2 people are
taking him up on it. That $20 into $40 that Brad was talking about....
right there. If your you're "long term", you'll need the money later. If
you're "short term", you can just take it all back when you quit, pay
your 15% penalty for early withdrawal, and you're still way ahead.
When I worked for him at his previous company, he had the same program,
but we had better participation. I'll never forget one day when the
market went WAY down. Two or three of the folks were complaining about
how much money the "lost" because of it. I pretended to take them
literally and said "you mean you SOLD when the market went down? You're
not supposed to sell low, you're supposed to BUY low". Then I'd explain
to them (this time without the sarcasm) that when the market dips like
that, it means that the money you're putting into your 401k is buying
more stock. You haven't "lost" anything, unless you sell while it's
down, but that long term, you are coming out ahead, unless the
investments you chose disappear completely. A well rounded 401k doesn't
get hurt by short term market fluctuations.
Rik Sandberg wrote:
> Brad,
>
> Yeah, we used to try to help some of our employees understand where they
> were going wrong with their personal finances. Start talking about
> compound interest and watch their eyes glaze over. As concepts go,
> supply and demand is an even tougher one to get across. They'll bitch
> about the price of gas, but if they sell their house for twice what they
> paid for it, they have no problem with that. It's just amazing.
>
> Rik
>
> "There's a reason why bankers drive Cadillacs and the rest of us drive Chevies. Bankers collect interest,... The rest of us pay it" .... Rik Sandberg
>
>
>
> Brad Haslett wrote:
>
>> Hank & Rik,
>>
>> Every time I go to work I have a good laugh driving by the hub workers
>> parking lot on the way to the pilot's lot. The hub workersry lot is filled
>> with brand new iron. The pilot lot looks like a salvage yard and you wonder
>> how some of those beasts made the journey. My youngest son just left for a
>> five month cruise on his USCG cutter and we had a long talk about what a
>> wonderful opportunity this was for him to save money. Yeah Right! I may as
>> well have been explaining the time value of money to the remaining squirrels
>> in my backyard.
>>
>> Brad
>>
>> On Fri, May 2, 2008 at 8:56 AM, Rik Sandberg <sanderico1 at gmail.com> wrote:
>>
>>
>>
>>> Ahhh .... to be young and bulletproof again, eh.
>>>
>>> But hey, they're having fun, that's the important thing .... right?
>>> Somebody'll take care of 'em if they fall on their face. Someone always
>>> has, why would they stop now?
>>>
>>> Rik
>>>
>>> "There's a reason why bankers drive Cadillacs and the rest of us drive
>>> Chevies. Bankers collect interest,... The rest of us pay it" .... Rik
>>> Sandberg
>>>
>>>
>>>
>>> Hank wrote:
>>>
>>>
>>>> Rik,
>>>>
>>>> What gets me is the kids (20 somethings) working for me that are driving
>>>>
>>>>
>>> 40K
>>>
>>>
>>>> beemers, lexus, etc. They don't put a dime away, rent an apartment and
>>>> waste all their money on fancy cars. You can talk to them until you are
>>>> blue in the face and you won't get anywhere.
>>>>
>>>> Hank
>>>>
>>>>
>>>> On 5/2/08, Rik Sandberg <sanderico1 at gmail.com> wrote:
>>>>
>>>>
>>>>
>>>>> Hank,
>>>>>
>>>>> Yeah I hear that.
>>>>>
>>>>> I am just flabbergasted these days talking to people about their credit
>>>>> habits. How many do you know who would buy that pair of shoes on their
>>>>> credit card, then, make the minimum monthly payment?
>>>>>
>>>>> Rik
>>>>>
>>>>> "There's a reason why bankers drive Cadillacs and the rest of us drive
>>>>> Chevies. Bankers collect interest,... The rest of us pay it" .... Rik
>>>>> Sandberg
>>>>>
>>>>>
>>>>>
>>>>> Hank wrote:
>>>>>
>>>>>
>>>>>
>>>>>> RIk,
>>>>>>
>>>>>> I recently bought the most expensive pair of shoes I've ever
>>>>>>
>>>>>>
>>>>>>
>>>>> bought. $130
>>>>>
>>>>>
>>>>>
>>>>>> for a pair of Johnston and Murphy leather dress slip-ons. I almost
>>>>>>
>>>>>>
>>> had
>>>
>>>
>>>>> a
>>>>>
>>>>>
>>>>>
>>>>>> heart attack when they were rung up.
>>>>>>
>>>>>> Hank
>>>>>>
>>>>>>
>>>>>> On 5/2/08, Rik Sandberg <sanderico1 at gmail.com> wrote:
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>>> Hank,
>>>>>>>
>>>>>>> Admittedly interest rates are a bit slim these days.
>>>>>>>
>>>>>>> But, the way most people seem to think these days, if they found 20
>>>>>>>
>>>>>>>
>>> on
>>>
>>>
>>>>>>> the street, they would only have to borrow another 100 to buy that
>>>>>>>
>>>>>>>
>>> cool
>>>
>>>
>>>>>>> new pair of shoes.
>>>>>>>
>>>>>>> Rik
>>>>>>>
>>>>>>> "There's a reason why bankers drive Cadillacs and the rest of us
>>>>>>>
>>>>>>>
>>> drive
>>>
>>>
>>>>>>> Chevies. Bankers collect interest,... The rest of us pay it" .... Rik
>>>>>>> Sandberg
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Hank wrote:
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>> Pretty soon it would be $40? What bank do you use? I want that
>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>> interest
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>> rate!!!
>>>>>>>>
>>>>>>>> Hank
>>>>>>>>
>>>>>>>>
>>>>>>>> On 5/2/08, Rik Sandberg <sanderico1 at gmail.com> wrote:
>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>>>> Ed & Brad,
>>>>>>>>>
>>>>>>>>> Ha ha ..... yeah and if you found that twenty dollar bill and said
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>> hmmm,
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>>> a windfall and put it in the bank, pretty soon it would be forty
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>> dollars.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>>> This (saving) is apparently another foreign concept anymore.
>>>>>>>>>
>>>>>>>>> I wunder sumtimes if koledge isn't over-rated.
>>>>>>>>>
>>>>>>>>> Rik
>>>>>>>>>
>>>>>>>>> "There's a reason why bankers drive Cadillacs and the rest of us
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>> drive
>>>>>
>>>>>
>>>>>
>>>>>>>>> Chevies. Bankers collect interest,... The rest of us pay it" ....
>>>>>>>>>
>>>>>>>>>
>>> Rik
>>>
>>>
>>>>>>>>> Sandberg
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>> Brad Haslett wrote:
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> Ed,
>>>>>>>>>>
>>>>>>>>>> Good article. I've watched a number of smart accounting students
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>> and
>>>>>
>>>>>
>>>>>
>>>>>>>>> MBA
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> candidates struggle with the concept of "sunk costs" because they
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>> couldn't
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> remove emotions from the decision making process. One professor
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>> used
>>>>>
>>>>>
>>>>>
>>>>>>>>> the
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> example of finding a twenty-dollar bill on the sidewalk. Is its
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>> value
>>>>>
>>>>>
>>>>>
>>>>>>>>> zero
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> because it was free or is it worth $20? If you paid $20 for a
>>>>>>>>>>
>>>>>>>>>>
>>> share
>>>
>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>> of
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>>> a
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> company that failed and went out of business, is your share worth
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>> $20
>>>>>
>>>>>
>>>>>
>>>>>>> or
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>>> is
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> it worthless?
>>>>>>>>>>
>>>>>>>>>> You'd think that the fear mongers of global warming would be
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>> ecstatic
>>>>>
>>>>>
>>>>>
>>>>>>>>> about
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> $4 a gallon gasoline. And yet, the same voices are crying for a
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>> solution
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>>> for
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> high gas prices. No problem, let's start drilling! No, we can't
>>>>>>>>>>
>>>>>>>>>>
>>> do
>>>
>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>> that
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> because of the "environment". Fine, let gasoline go to five bucks
>>>>>>>>>>
>>>>>>>>>>
>>> a
>>>
>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>> gallon
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> and we'll slow global warming and "help" the environment. The laws
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>> of
>>>>>
>>>>>
>>>>>
>>>>>>>>> supply
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> and demand are pretty straight forward provided you keep emotions
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>> and
>>>>>
>>>>>
>>>>>
>>>>>>>>>> "rights" out of the decision making process.
>>>>>>>>>>
>>>>>>>>>> Brad
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>> On Fri, May 2, 2008 at 7:06 AM, Tootle <ekroposki at charter.net>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>> wrote:
>>>>>
>>>>>
>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>> Brad stated, "Here's a novel idea for the passenger airlines I
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>> learned
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>>> in
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>>> grad school - if it costs 4 cents to produce your product, charge
>>>>>>>>>>>
>>>>>>>>>>>
>>> a
>>>
>>>
>>>>>>>>>>> nickel."
>>>>>>>>>>>
>>>>>>>>>>> Then he followed with a question, "Where do we find these
>>>>>>>>>>>
>>>>>>>>>>>
>>> people?"
>>>
>>>
>>>>>>>>>>> Brad, your question presupposes that the readers either
>>>>>>>>>>>
>>>>>>>>>>>
>>> understand
>>>
>>>
>>>>>>>>>>> business
>>>>>>>>>>> (aka economics) or give a damn. Remember you are asking that
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>> question
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>>> to
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>>> supporters of Hillary and Obama and maybe even McCain.
>>>>>>>>>>>
>>>>>>>>>>> And Michael M has already said that we need to lay off the
>>>>>>>>>>>
>>>>>>>>>>>
>>> subject.
>>>
>>>
>>>>>>>>>>> Apparently the socialists among us have been discretely given a
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>> green
>>>>>
>>>>>
>>>>>
>>>>>>>>>>> light
>>>>>>>>>>> by Michael M. One posts an obviously baiting citation of a Maine
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>> advocacy
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>>> of national health care.
>>>>>>>>>>>
>>>>>>>>>>> I ask you how many understand the following short article?
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>> http://www.gmu.edu/departments/economics/wew/articles/07/economicthinking.htm
>>>
>>>
>>>>>>>>>>> Ed K
>>>>>>>>>>> Greenville, SC, USA
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>> --
>>>>>>>>>>> View this message in context:
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>> http://www.nabble.com/Political---big-Al-delete---Brads-economic-question---However-Big-Al-have-considered-that-you-opinions-might-be-necessary-to-keep-the-young%27uns-in-reality--tp17017185p17017185.html
>>>
>>>
>>>>>>>>>>> Sent from the Rhodes 22 mailing list archive at Nabble.com.
>>>>>>>>>>>
>>>>>>>>>>> __________________________________________________
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>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
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>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
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>>>>>>>>>
>>>>>>>>>
>>>>>>>>>
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