Replies to post #124639 on Biotech Values

[linhdtu]

I can chime in with the waste in Defense spending.

I have been working for the DOD for 10 yrs and at first the inefficiency choked me up coming from the private world where I worked for 22 yrs before going to defense.

In my opinion, a cutback of anywhere between 15% to 25% wouldn't harm anything. Part of the problem comes from the revolving door between gvt and contractor.

To give an example : a general before retirement would shut down a gvt facility in the last 2-3 yrs of his service, only to have the same capability outsourced later to his employer once he retired.

It is corruption pure and simple but it goes on in broad daylight.

I'll stop here because it really is endless.

[10nisman]

OT

The devil in the details is higher interest rates. If there wasn't trouble in the eurozone interest rates would be much higher and climbing. Basically this flight to safety in the treasury market won't last if we continue to spend and our credit rating continues its descent.

With or without the eurozone, U.S. interest rates would still be trading very close to historic lows. The demand for treasuries from foreign countries, U.S. corporations, older and likely permanently risk averse U.S. retail investors, along with the lack of significant inflation and strong economic growth will likely keep rates at very low rates for years to come.

There is so much bureaucratic fat and waste in government that needs to be cut. Look at the post office. I know a guy that makes well over $100,000 a year working for the Navy. He reports to work for two hours in the morning and he's done with work by 10A.M. everyday. What we need is productivity not more wasteful spending.

There clearly is way too much fat and waste in the government. Definitely not denying that. But, what the economy needs right now is employment to help drive long-term economic growth. We need get people back to work and we can worry about productivity gains once the economy is up and running and self sufficient. The retirement of baby boomers by itself will result in significant productivity gains, however, too many of them overspent and are now occupying jobs they should have already left.