And Dilbert Too

Yes folks, even Dilbert is in on it now.

Enough with Woodstock already

OK. I've had enough of Woodstock already. Not just this year but from the time I was eight and found out that it wasn't just the bird that hung around with Snoopy. I have had enough to last my entire lifetime.

We get it. It was a big concert. Oh, yeah, it was outdoors. You took drugs and listened to music. This makes you special, how?

It was like anything else boomer. There were tickets for sale but the boomers wanted to go to this concert and they didn't have any money. So they climbed / tore down the fences and let themselves in for free. The promoters lost so much money they had to declare bankruptcy.

We get it.

But the boomers did not know that it was a harbinger of things to come. A generational foreshadowing.

You wanted it. You took it. You didn't pay for it and then you walked away from it. Leaving a giant mess behind you. Just like everything else in your lives.

Now, every year we get to hear about it. Over, and over and over and over and over.

Enough already.

Let's point some things out. For starters the music wasn't that good you just thought it was because you were all stoned out of your minds. And have you seen what you were wearing (or not)? You looked foolish.

If your kids started behaving that way you would find drugs for them (of the Ritalin variety) and make them buy some nice preppy clothes.

We get it. Forty years ago there was a concert (god knows we don't have anything like that anymore).

Now do us a favor and STFU!

Pro Obama Care or Anti-Baby Boomer?

Sometimes editorials can be a little bit funny. This bloke writes a piece about Obama's health care plan and in the process bashes the baby boomers.

The piece starts out so promising:

As we Baby Boomers turn the corners on our lives, we’re staring down all kinds of insecurities and fears from our lifestyles and our wastefully-led economic past practices.

We spent money like crazy, and helped create the turning of the Credit Card industry into a legally sanctioned Mafia with vigs and juice loan rates higher than those charged by the organized crime.

Ahhhh... One of the scariest things in life is to truly know yourself. I wonder if it is a good idea to make your case for health care reform by bashing the people whose support you are trying to enlist.

Here's a bit more:

Now, as the Baby Boomers transform from a help thy neighbor to a “where’s my” phenomena, we are willing to swallow every fear-mongering claim by the hate-mongers like Sean Hannity, Rush Limbaugh, Michelle Malkin, Ann Coulter, Lou Dobbs and Glen Beck.

Are today’s seniors really that stupid or are they losing their ability to think for themselves, the one asset we celebrated that set us apart from every other generation

The thing is, the baby boomers never really did think for themselves. It is not an ability that they ever had to begin with. If they had it then the world never, ever, never would have had disco.

Think the boomers can think for themselves?



I rest my case.

The echo chamber, or... Did I call it?

As Steven Colbert says, "Nailed IT!"

The cries against the Baby Boomer generation are becoming louder and more frequent. It is popping up online, in comments and on TV.

Today's Link is from the Veronon Broadcaster (where ever that is):

The generation right after the “greatest,” is largely deemed the worst. They are the Love Generation or Baby Boomers — those who were going to change the world and redefine freedom, yet have largely squandered everything.

Wow, this guy sounds like one of our readers.

Remember, I once told the boomers that we would write their history.

Meanwhile, in the July 21 edition of the Chicago Tribune, columnist David Byrne wrote: “...Someone who writes a book about (Baby Boomers) in another 40 or 50 years... will brand them as perhaps the most selfish generation in American history. That author would accurately nail them for their greedy, miserable selves because he and hundreds of millions of others will be living in the cesspool of debt that they leave behind.”

We will decide how they are remembered. What is great is they are living long enough to see how history will view them.

Just one more snippet:

The Baby Boomers consumed what they inherited from their parents, while also digging a massive hole of national debt for their children, grandchildren and great-grandchildren.

The whole piece is an excellent bash on the boomers. Head on over there and leave some comments to let them know that they are on the right path.

Well, now we know. Or, learn from others

My fellow X-ers, we are young enough that we can learn from the mistakes of others.

Two and three generations ago there was a different mindset in this country. You worked, you saved, you paid off you house and you shunned debt.

Then the baby boomer generation came along. This was a group of people that never met something they didn't want and didn't want it right now.

It made no difference how they got it. If they had the cash then they bought it right then. If they had the credit card then they bought it right then. Send no money now! Just get it right now!

They told themselves it was good for the economy. They more they spent the richer they were.

They invented the concept of good debt and bad debt. I'm here to tell you all debt is bad. Sometime you have to use it (to buy a house) but you should not maintain the debt for longer than you absolutely must.

Why do I go on about this.

Well, if you read through previous posts you will see that the baby boomers cannot afford to retire and thanks to the recent market crash that has only gotten worse.

Once again, over at MSNBC there is a story about this:

Even before the collapse of the housing and financial markets last year, Americans were woefully unprepared to pay retirement in the traditional sense of a post-career period of leisure and personal pursuits supported by a pension, well-managed nest egg and Social Security.

Now, trillions of dollars of housing equity have been destroyed, retirement savings have vaporized and pension funds are being squeezed. The old-fashioned notion that when you hit age 65 your lifelong employer will give you a warm sendoff, a gold watch and a pension that guarantees your financial security for life is very much in the past.

The question should arise; were these ideas of the past or were they a lie that a generation willingly sold and bought itself.

Look back to your grandparents and great-grandparents. They lived through the Great Depression. They knew a job was not for a lifetime. They knew not to use debt and not to trust a bank.

These are the lessons that you need to learn. (Though I think most of us x-ers already know it.)

The numbers are stark. An April survey by the Employee Benefit Research Institute found that 53 percent of American workers have put away less than $25,000 in retirement savings and investments. That figure doesn’t include home equity and the lump sum value of pension plans. Some 20 percent said they had saved less than $1,000.

That is scary! I hope that you (yes, you reading this) are not in that category. If you are change your ways now.

Well, I'd like to rant some more and rip this apart. But, I have a life to live and so do you.

Remember: Fear banks and shun debt and you will get ahead.

A Gen-Xer goes out in Style (from the archive)

Before I took my (ahem) brief (ahem) hiatus I had readied this post and then never got around to posting it.

This is from the market crash back in October.

Enjoy.

---

I don't think much of the people in the finance industry. When I think of these folks Gordon Geeko from the movie Wall Street comes to mind.

This story, however, is about a Gen-x hedge fund manager who made a killing and is getting out of the game. It is great fun because he tells it like it is. (I lifted the full text from here).

Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.

Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.

There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.

I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.

So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don't worry about my employees, they were always employed by Mr. Springer's company and only one (who has been well-rewarded) will lose his job.

I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life -- where I had to compete for spaces in universities and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.

On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government. Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to create a new system of government that truly represents the common man's interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft's near monopoly. I believe there is an answer, but for now the system is clearly broken.

Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won't see it included in BP's, "Feel good. We are working on sustainable solutions," television commercials, nor is it mentioned in ADM's similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won. At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country? Ah, the female. The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You would not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let's stop the rhetoric and start thinking about how we can truly become self-sufficient.

With that I say good-bye and good luck.

All the best,

Andrew Lahde

Say it isn't so...

Hi folks (if any of you are still around after all this time).

Unlike me, the baby boomers have not yet disappeared. Even though we wish that they would have all taken an extended holiday they are still with us.

And what has happened since I've been gone?

Well, the stock market cratered thereby answering the question of, "Will or will they not retire?" It appears the answer is, "Never". Which means we are screwed. They will be in the workforce with us forever. I guess we will have to get used to seeing paramedics show up at the office.

Anyway.....

Over at MSNBC we find a story about the baby boomers cutting back on their spending.

Mercedes is the quintessential boomer brand. Drive down an American highway, and odds are good that the person piloting the Benz in the next lane was born between 1946 and 1962. And Mercedes-Benz has prospered right along with America's huge postwar generation. Back in 1986, when the first baby boomers turned 40, Mercedes sold 99,000 cars in the U.S. In 2006, when those boomers hit 60, the automaker moved almost 250,000 vehicles, a fifth of its global total.

This year, Mercedes will sell a third fewer cars in America. In Montvale, N.J., Kristi Steinberg, who runs Benz's North American market research operation, has a nagging fear: that sales won't recover for a long time because boomers, history's wealthiest generation, are tapped out. "I don't know if anyone knows yet if this is a blip," she says, "or a defining moment like the Great Depression."

Now let me ask something. Are the baby boomers really history's wealthiest generation? How can wealthy people be tapped out? If they are tapped out that means they are poor. You see wealth implies that you have assets. Assets that generate income or assets that you can sell to raise money.

If you are tapped out then you are broke. You are not wealthy.

So let's change the meme. Baby boomers are history's poorest generation.

Now, let's move on.

Not so long ago, boomers were never going to die. Filled with a self-confidence born of unprecedented prosperity, many thought rising markets would assure their future. If the economy faltered, well, it would rebound more strongly than ever, as it had so many times before. And so boomers spent — and borrowed — as if there were no tomorrow.

Well, this is not a news flash. After all they did, "Hope I die before I get old".

So let's look at this next tool.

Meet Tim Woodhouse, 56. He owns Hood Sailmakers in Middletown, R.I., a business that helped finance a plush life. Woodhouse owns a boat, five Ducati motorcycles, and every few years treated himself to a new Porsche 911. He figured he'd retire when he felt like it. Then the markets crashed, the economy tanked, and suddenly Woodhouse felt a lot poorer. In April, with business slowing and his real estate holdings leaking value, Woodhouse hit the brakes. "I was scared," he says. "My net worth took a real hit." Woodhouse sold the Porsche and bought a Mini Cooper. The boat spends more time tied up these days than out on the water. He and his wife dine out less often, and they don't entertain at home much either.

OK. Let's start.

If your business generates income and you spend all of it, you are not wealthy. You are maintaining a lifestyle. You have the appearance of wealth. From the outside you have more motorcycles than you can ride and a car that makes you look good. But what does this do for you?

If you had true business sense, you would live frugally and save a lot of your money for the rainy day that had to be coming.

But we won't cry for this guy. He could at least sell the Porsche.

Don't worry there is hope. The boomers are the generation that will buy whatever is marketed to them:

The trick will be finding a way to fulfill the needs and wants of a generation that is used to being catered to — but is now on a budget. Timothy Malefyt, an anthropologist who studies consumer trends for the ad agency BBDO New York, argues that boomers, having ridden a wave of technological change, are highly adaptable and well versed in problem-solving. (Or at least they see themselves as such.) Already, he says, they are making a virtue of value shopping, once viewed by this group as hopelessly déclassé. For many boomers it's no longer about keeping up with the Joneses, it's about outthinking them. "If you make boomers feel they've failed, you'll lose them," Malefyt says. "They want to feel they've outsmarted the system or their circumstances."

You think gen-y is spoiled? Where do you think they learned it from. Tell a boomer he is awesome and he will follow you around like a puppy begging for more (he'll do it so much that you want to have him euthanized.)

Well, there is more to the article. You can go read the rest yourselves.

For now I am out of time.

Maybe I will be able to post more. Maybe not. It's a busy being a gen-x in this world. It's work maintaining the frugal lifestyle to which I have become accustomed.

I'm willing to bet that I will retire before the boomers.

Till next time....

If you are in doubt of what to do or how to behave, look to those a generation older than you and then do the opposite. You have a 90% chance that it will be the right thing.