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Subject: Baby Boomers

A baby boomer is a person who was born during the demographic Post-World War II baby boom. The term “baby boomer” is sometimes used in a cultural context, and sometimes used to describe someone who was born during the post-WWII baby boom. Therefore, it is impossible to achieve broad consensus of a precise definition, even within a given territory. Different groups, organizations, individuals, and scholars may have widely varying opinions on what constitutes a baby boomer, both technically and culturally. Ascribing universal attributes to a broad generation is difficult, and some observers believe that it is inherently impossible. Nonetheless, many people have attempted to determine the broad cultural similarities and historical impact of the generation, and thus the term has gained widespread popular usage.
In general, baby boomers are associated with a rejection or redefinition of traditional values; however, many commentators have disputed the extent of that rejection, noting the widespread continuity of values with older and younger generations. In Europe and North America boomers are widely associated with privilege, as many grew up in a time of affluence. As a group, they were the healthiest, and wealthiest generation to that time, and amongst the first to grow up genuinely expecting the world to improve with time.
One of the unique features of Boomers was that they tended to think of themselves as a special generation, very different from those that had come before. In the 1960s, as the relatively large numbers of young people became teenagers and young adults, they, and those around them, created a very specific rhetoric around their cohort, and the change they were bringing about. This rhetoric had an important impact in the self perceptions of the boomers, as well as their tendency to define the world in terms of generations, which was a relatively new phenomenon.
The baby boom has been described variously as a “shockwave” and as “the pig in the python.” By the sheer force of its numbers, the boomers were a demographic bulge which remodeled society as it passed through it.
The term Generation Jones has been used by Jonathan Pontell to distinguish those born from 1954 onward from the earlier Baby Boomers. (Wikipedia Jan 2010)

US Politics

President Obama and the Lincoln Bible

New Leaders

The Crash of 2008 put Barack Obama in the Oval Office and was the culmination of two secular financial trends: a growing US trade deficit that was the root of easy financing for credit cards and mortgages, and the stock buyback movement that manipulated the equity market and that, in recent years, had become dependent upon easy credit rather than corporate profits.

Americans now have an untested, inexperienced leader, with strange radical friends and a leftist deficit spending agenda. Obama must govern 300 million people in a serious economic crisis that he has the power to exacerbate.

In Obama’s first hundred days, the case of the Lincoln Bible, the Stimulus Bill, staffing problems, and the Maersk Alabama incident, hinted of difficult days to come for the United States.

The end of an era?

Stock buybacks dry up

Is the buyback party over?

Since 1982, US equities markets have been driven upwards by corporate stock buybacks. Federal Reserve flow of funds accounts showed corresponding sales of stocks by executives exercising options to take advantage of manipulated prices.

The Crash of 2008 changed this pattern, driving equity prices down so that executive options were “below water”. Companies reduced buybacks due to tight credit and the inability of executives to benefit in the depressed market.

Securities Analysis

How much are US equities over-valued?

A rush to exit the stock market ...

Commonsense analysis shows that US equities are at least 40% overvalued, a conclusion supported by many academics and John Burr Williams’s formula.

This suggests that many retirement plans, based on equity investments, may be in trouble, if (or better, when) stocks fall to reasonable values.

This article, using John Burr Williams’ famous formula, shows how the market may be valued.

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Stock buybacks

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US Politics

What is the future of private pension plans?

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Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Signs of US losing its groove?

Thirty years ago, US income from abroad was more than double the amount of income that the US paid to the rest of the world. This year, or the next, this foreign income surplus may disappear forever. Is the US 'losing its groove'? More ...

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2010-12-13 13:55