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5/15/2012 7:43 AM
Kinda Blue
Market Commentary
By Charles Payne, CEO & Principal Analyst
Question of the Day
Do we really care as much for our children as our parents cared for us or are we too weak to make similar sacrifices?
Post your answer below.
Considered by many to be his best work and acknowledged to be his best selling album, “Kind of Blue" set a new standard for jazz. The album officially made Miles Davis the coolest cat in the world.
This day in age, being kind of blue is a permanent state, the psyche of America. Far from being cool, we are tied up in knots about so many things. In fact, we have become a nation of long-tailed cats in a room filled with rocking chairs.
Years of Blue
That melancholy aura continues to haunt the market, which seems to reflect a nation haunted by lingering questions and lingering doubts. Those self-doubts can't be dodged or avoided because of the never-ending cascade of disappointment and lack of leadership.
 We began the new millennium with hope and joy as all the computers in the world didn't crash, the earth didn't stop rotating, but the stock market came unglued as the greatest bubble in a generation popped. Plus, there was the attack on 9-11 and a couple of wars.
It wasn’t supposed to be this way.
The Sky Is Falling
In April 1999, Pantone announced its color of the century as Cerulean or sky blue for a variety of reasons, including a reflection of the past and an exciting future (see sidebar). Pantone pointed to the psychological impact of gazing at the blue sky and that sense of peace and tranquility it brings to the human spirit. Essentially, we would be looking for solace in a new high tech world and that meant keeping our heads to the sky. Here’s the thing, we look at the sky and it looks like it is falling. In fact, it is falling, and it’s one thing you could get bipartisan support on, but the reasons it’s falling are where people disagree.
I abhor the notion that successful people are the reason for this blue phase in American history, and that somehow government-forced redistribution of wealth is the solution. In fact, I think that would be the dagger in our soul and turn the skies black. This is really about the West in general, after a remarkable run of dominating the rest of the planet resting too long on its laurels and making assumptions of future success without planning for future success. The crazy thing is we don’t have the guts to do things required, so future generations have a chance at greatness. In Europe, there is a massive backlash against austerity even in places where it’s been in place for a month or so.
These Europeans understand how dangerous and selfish their actions are for their children and how conditions they leave for them will make their lives worse, not better.
It’s amazing how much more confident the Chinese are for their children than we are in America, and yet, the only answer we get is tax the rich.
Our Own Private Greece
Governor Jerry Brown of California took to www.youtube.com to push for even higher taxes after it became clear revenue assumptions for Caifornia were wildly off the mark. Previously, the state told the world its budget deficit would be $9.2 billion, that was in Janaury, now the number is $16.0 billion. The governor blamed everything except mindless spending. California was once the Golden State, and if you are a Hollywood star, Silicon Valley engineer, or just arrived from a thrid world country, it’s still the land of milk and honey. For everyone else, it’s the land of broken promises and dashed potential. Actually, those in the “other” category have been moving out of the state in droves.
I’m talking about smart, innovative and productive people leaving to the tune of 850,000 between 2005 and 2009 and being replaced by unskilled immigrants and babies.
The solution from Governor Brown may sould familiar:
Increase taxes on incomes over $1.0million to 13.3% from current $10.3%
Increase taxes on households above $250,000
Increase sales tax to 7.50% from 7.25%
California already has the highest taxes for individuals and sales, and sports an A- credit rating. There are too many promises and too many obligations and too many pipedreams like the high speed rail that Governor Brown insists should still be done.
Do We Love our Children
In Europe and America, there’s a growing feeling of hysteria
Conditioned to repond to all the threats
In the rhetorical speeches of the Soviets
Mr. Krushchev said we will bury you
I don’t subscribe to this point of view
It would be such an ignorant thing to do
If the Russians love their children too
Sting
In his anti-nuke song “Russians” Sting took on the Russians and Ronald Reagan, but the fact is, Reagan won the Cold War with steel determination. These days we hear talk of doing things to make life better for our children, but we keep doing the same stuff that will make their lives harder. The results from the Boston Consulting survey say it all—in nations where debt is out of control, unemployement is sky high, and the population is aging rapidly, they scream about the pain of austerity while admitting life will be touger for their children.
I just don’t think people care as much or are willing to sacrifice as much as previous generations.
Today's Session
The market limped out of yesterday's session, but well off the lows. Today, it should get help from an Internet one-two punch. Groupon (GRPN) may not be a Ponzi scheme after all and Facebook isn't having trouble getting people to buy its IPO. Groupon soared in the aftermarket on its earnings report that is actually becoming less and less transparent, and Mark Zuckerberg & Co. upped the IPO to a new range of $34 to $38 potentially making it worth $100.0 billion before the first shares change hands in the open market. Economic data came in mostly in line nothing exceptional but no disaster either.
The CPI results should encourage those praying for more Fed intervention.
The Facebook buzz is helping the market today as well.
| Comments |
No, in general Americans are no longer willing to sacrifice for children or even for themselves for the future. BUT exceptional Americans continue to plan and execute and persevere for the long haul for themselves and for their children and grandchildren. My wife and I continue to work and even as we reach the age of receiving Social Security checks while we continue to pay Social Security taxes, we are assisting our kids and grandkids, hopefully in ways that will truly assist them and not hinder them.
James W. Carley on 5/15/2012 9:59:50 AM |
What kind of question is that? LOL Of course we care for our children as much as our parents. Life is what you make it. I am confident our children will find a way to thrive regardless of what obstacles are in their way. They excluded the bottom income quartile in China, which could be why China thinks their children will be better off.
Tamara on 5/15/2012 10:08:52 AM |
It is not a question of weakness, it is more a question of taking responsibility for the results of previous actions...Stop making babies if you are not prepared to raise them properly. This is our biggest societal problem today.
tom Wayne on 5/15/2012 10:31:10 AM |
I believe that most parents today look for the easy way out, and that is to say that they say "yes" all too often because they do not have to get into a dialog with their children on why their answer should really be NO.
Nunzio Garzino on 5/15/2012 11:09:25 AM |
Charles: We have entitlement problems that have been the main source of our debt problem. Everyone is going to feel the pain of fixing these problems. There are a great number of people who may have to do without a few extras. Compare this to a greater number of older people who worked in jobs all their life that did not pay enough to save for retirement. These people will not be able to pay for anything. I own my own business and work every day. I know how hard it is to make any profit after taxes, insurance, fees and interest payments on credit lines. To get a credit line these days you really have to be in position not to need it. We should get off our rear's and do what is necessary to start fixing the problems. We have already cut to the bone as I am sure lots of other folks have done.
Frances Wiggins on 5/15/2012 11:10:09 AM |
You are the cool dude. Never miss the opportunity to watch you on Fox Business. You got your head on. This country needs more Charles Payne's and less Obama's
william Body on 5/15/2012 11:29:53 AM |
My kids are age 18-30. I will venture to say my generation doesn't really care for our children like the previous generation. I think we were the peak generation for planning on kicking the kids out of the house at 18. And we are getting our comeuppance for it.
The true wealth of a nation is in its families. Do the families stay together and support one another? Do children have the safety net of staying in the parents' home until they are financially ready to move out? (These days, there is so little financial training for youth that most don't even know what "ready" is). We are learning now that unbridled personal spending and unbridled government spending lead to the same result: financial failure for individuals. Our government won't fall for its overspending. Instead, we have double digit unemployment with no end in sight, and that means a similar percentage of families without the means to pay their bills.
The crux of the problem is not the small sacrifices which parents may or may not be willing to make for their children, but in the big life decisions. It is the egocentricity which has created a no-fault attitude in my generation. Adultery, divorce, bankruptcy, shoplifting, skipping out on student loans, hit-and-run in parking lot fender benders, obesity, and alcoholism are all symptoms of the root problem of a selfish spirit that refuses to rein in behavior for the good of the family (or the long term good of one's self). And once the family is weakened by these excesses, there is too little left to provide what is really needed for the children. Sure, we see a nation of people that are living very stressed. Without a safety net of a solid family behind you, the world is really a very scary place.
Bob G on 5/15/2012 11:43:51 AM |
i had read from several sources that osama bin ladin was a diabetic...diabetics have distinct paraphernalia, syringes, insulin, blood testing kit and usually some sort of log. there was no mention of this by the seals who raided his compound. this fact plus the hasty disposal of the body leaves me suspicious that it may not have the real osama bin ladin that the seals killed
meyerhoff on 5/15/2012 12:50:54 PM |
"Caring" for our children doesn't mean giving them everything material, but giving them the tools to live successful, productive lives--starting with a good example. If we spend like there's no tomorrow and live in dependence upon the efforts of others to provide for us, then our children will definitely "learn the hard way" what doesn't work. We are giving our kids a recipe for diaster and failure, denying them the keys to their own wonderful capabilities and future!
Linda Titcomb on 5/15/2012 1:15:46 PM |
That might be hard to quantify. Everything my parents did was for their seven children. I don't think they believed it was sacrifice, but I do. Except for Dad going to work, it was a rare event for them to go out anywhere without us, or at least some of us. I don't know how I'd measure that against parents providing financial help like paying for college, cars or medical insurance. Parents give what they can to their children in any era, and it depends on what possible sacrifices exist at the time. Something has to be within reach before it can be sacrificed.
Patricia Flynn on 5/15/2012 3:26:55 PM |
We made the decision to have a stay-at-home mom for our kids. So, yeah, we sacrificed by living on one income, giving up big vacations, new cars, Nike shoes, the trendiest clothes, and a fully funded college fund. Mom brought in some extra income on a cottage industry and teaching occasional evening classes. We lived on a tight budget, but our kids did graduate college and both are independent, successful adults. I think it was a good choice. Our kids learned to be happy without having everything and they developed a good work ethic. I think would both tell you they had a happy childhood. It can be done if you are willing to scrimp, budget, and do without some things.
Cindy on 5/15/2012 6:36:29 PM |
Unfortunately, my generation is full of pampered, spoiled brats and they have raised, or someone else has raised their kids to be incorrigible and forever on the path of immaturity. Thus weak mindedness, weak spirit and no sense of right and wrong. How could they, when raised by a nanny or child care employee. Sacrifice isn't part of the vocabulary. Scarry to think these people will be making the decisions when I get too old.
Gail on 5/15/2012 7:19:28 PM |
All caring parents would make whatever sacrifices that are necessary to help their children but what is the plan, Stan?
I would wear winter underware all summer long if that would help my children but where is the leadership from Congress and the President?
Rich on 5/16/2012 10:16:11 AM |
wE,RE SACRIFICING PLENTY. MULTIPLE SPORTS AT THE SAME TIME. INFLATED SCHOOLING COSTS. CELL PHONES, VIDEO GAMES, I-PODS ,I-PADS, YOU NAME IT. MY PARENTS GENERATION HAD A HOUSE, A COTTAGE AT THE LAKE, TWO CARS, SENT KIDS TO PRIVATE SCHOOL AND COLLEGE. ALL ON MY FATHER MIDDLE INCOME SALARY.
bRUCE eMERY on 5/16/2012 2:41:18 PM |
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