tag:blogger.com,1999:blog-2555123713188257297.post1039774404531946460..comments2023-12-14T21:55:11.213-05:00Comments on Mitchell Langbert's Blog: QE 3: Gold Bugs, Stockholders Celebrate While American Workers StarveMitchell Langberthttp://www.blogger.com/profile/00722335216553899790noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2555123713188257297.post-65431180724729769062012-10-03T13:48:13.736-04:002012-10-03T13:48:13.736-04:00The "al" spelling applies here because I...The "al" spelling applies here because I am talking about it in the sense of capital. The "le" spelling applies when you're talking about rules of conduct.<br /><br />From Dictionary.com'<br /><br />prin·ci·pal<br /> [prin-suh-puhl] Show IPA<br />adjective 1. first or highest in rank, importance, value, etc.; chief; foremost.<br />2. of, of the nature of, or constituting principal or capital: a principal investment. <br /><br />prin·ci·ple<br /> [prin-suh-puhl] Show IPA<br />noun<br />1. an accepted or professed rule of action or conduct: a person of good moral principles.<br />2. a fundamental, primary, or general law or truth from which others are derived: the principles of modern physics.<br />3. a fundamental doctrine or tenet; a distinctive ruling opinion: the principles of the Stoics.<br />4. principles, a personal or specific basis of conduct or management: to adhere to one's principles; a kindergarten run on modern principles.<br />5. guiding sense of the requirements and obligations of right conduct: a person of principle. <br />Mitchell Langberthttps://www.blogger.com/profile/00722335216553899790noreply@blogger.comtag:blogger.com,1999:blog-2555123713188257297.post-69394171736962828032012-09-25T20:21:24.602-04:002012-09-25T20:21:24.602-04:00Is it 'principle' or 'principal'?Is it 'principle' or 'principal'?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2555123713188257297.post-21627706166153223342012-09-25T00:38:47.624-04:002012-09-25T00:38:47.624-04:00Money market funds are legitimate. They are not in...Money market funds are legitimate. They are not involved in the money creation process. The money market is the means by which firms obtain short-term funds from lenders. They are low risk because their maturities are thirty days or some other short-term period. There is a close correlation between the inflation rate and the money market rate. Nevertheless, in the past few years the money market funds have yielded less than the inflation rate: they have been a losing proposition. They are low risk, though. <br /><br />I would suggest a higher risk, higher return REIT (real estate investment trust) rather than a money market fund. The REITs are yielding about six percent right now. <br /><br />If there is considerable inflation the REITS will likely hold their value better than the money market funds. Deflation would be a better environment for money market funds, but with QE3 I'm having trouble envisioning deflation. <br /><br />The government is making clear that it will do all it can to boost asset values; in particular, it aims to boost the stock and real estate markets. Money market funds currently yield close to zero. If you have a million dollars, a six percent yield means an income of $60,000 plus likely some capital appreciate as real estate prices recover. Money market funds will force you to eat into principle, and they are not returning as much as the inflation rate, which means that your principle is really getting smaller. Mitchell Langberthttps://www.blogger.com/profile/00722335216553899790noreply@blogger.comtag:blogger.com,1999:blog-2555123713188257297.post-30405745601995897802012-09-16T23:39:48.672-04:002012-09-16T23:39:48.672-04:00What are money market funds? Are they backed by re...What are money market funds? Are they backed by real money? Yet I can write checks on them? Is this not money created out of thin air? Are these funds illegitimate?Anonymousnoreply@blogger.com