The Dow fell 93 points yesterday. Gold fell $19 an ounce – closing below $1,300 an ounce. Nothing serious. But…
Markets continued their summer trading behavior last week. Up a little, down a little… meandering… strolling… not in a hurry to get anywhere. The end of the week found the Dow about where it began… and gold a bit lower. But here at the Diary, we make tracks. We are using these lazy, hazy days of summer to steal a march on our fellow investors. And our fellow humans!
When we left you yesterday we were lamenting how the American working classes have lost ground. Today, the typical working stiff has a lower real income than he had in 1950.
Wait… Is that possible?
Yes. As we showed yesterday, he has to work longer today to pay for a family car and a house than did six decades ago. In 1950, he could support a family.
Amazing how much difference a few years make. We first visited China in the 1980s. It was an appalling dump. Few cars. Few roads. Almost no decent restaurants or hotels.
Now in Beijing you see large black luxury automobiles everywhere… and modern highways crisscrossing in front of huge hotels and apartment buildings.
Dear Diary Reader,
Dad is in Beijing at the Chinese launch of his new book on family wealth, Family Fortunes.
So instead of his regular diary entry today, here’s another classic for you. It’s about a “forgotten” president who was the last to deal honestly with a financial crisis.