Comstock's Magazine

August 2010 Last month we asked whether you are reconsidering your benefits package because of the economy or the federal health care plan.
"We are being forced to reconsider what health care plans we offer and how we can mitigate the huge hit of a 21 percent price increase for our employees and our firm. I firmly believe these increases are due largely to insurance companies protecting themselves against the realities of the national health care 'plan.' A clear assault on small businesses like ours," said one reader. Said another: "I am not adjusting any benefits yet, but will evaluate the situation as it develops.  A lot can happen by then." 

July 2010 The values of gold, palladium and silver have increased dramatically the past few months. In large part, this is due to the recession and intrinsic value placed on such products. Which, if any, commodities have you recently incorporated into your portfolio and why?
Said one respondent at comstocksmag.com: “Gold stocks, gold index funds and gold bars and coins. I am less concerned about a recession’s effect on commodities (which could actually depress demand and pricing) than inflation. My opinion is that inflation will be rampant given the government’s excessive spending and increased entitlements.” Said others: “None.”

June 2010 In last month's reader poll we asked whether you, in light of the BP oil spill, still support drilling for oil domestically, and whether you would support such an undertaking off California’s coast. 
During the presidential election and fuel price spike of 2008, nearly 60 percent of Americans surveyed by Reuters said they would favor government efforts to boost domestic drilling and refinery construction. It seems opinions have shifted. Nearly all Comstock’s respondents to this month’s poll said they no longer support domestic drilling. “The Louisiana spill is proving that we don't know enough about underwater drilling technology to ensure that there will not be another disastrous accident,” said one reader. “The offshore wells are an eyesore, and the economic impact of any kind of spill to the Southern California tourism industry would be huge. There are other alternatives that should be pursued and placed as a higher priority to additional offshore drilling,” said another.

May 2010 Developers have put several proposals the table for K Street. They include everything from hotels and apartments to restaurants and retail. What amenity is at the top of your wish list for the blighted corridor?
Retail, retail, retail. Nearly every response centered on increased shopping options and the need to keep Sacramento’s dollars local. Also on the wish list: “How about … upscale grocery? There's absolutely no place to get fresh produce downtown when the farmer's markets aren't running,” said one respondent. “As an ‘older’ person, my husband and I find it difficult to find fun places to go in our city. … We like to dance and have fun together, but our choices are few and far between,” said another.

April 2010 TV ads for California’s gubernatorial election have begun to surface. What’s your assessment of the candidate pool and their ability to make significant changes at the Capital?
“No person, however capable, is able to make changes in a system that is fundamentally flawed,” said one respondent. The only hope for California’s terrible fiscal status, said one reader, “is to be a very effective speaker and get grassroots support from the population. That requires a person to really believe in and understand basic financial realities and then has a way to make those points clear to the entire population in very simple terms.”

March 2010 Would you support a ballot initiative that limited or eliminated the state’s ability to borrow money from local jurisdictions? Why or why not?
“We are a capitalist society. … No entity should be legally prevented from borrowing,” said one reader. Most had some reservations about the state’s definition of borrowing, including one respondent who said: “Should a parent borrow money from a child? I mean, ‘forcefully take it with interest.’ If the parent sneaks in … while little Mary appears to be asleep and takes the money while promising to pay it back with interest … while the child clutches onto her little piggy (bank) yelling ‘No! Not Piggy!’ … That would be a no.”

February 2010 Is your company giving raises or cost of living increases this year?
“Unless the economy recovers and people start spending again, my company cannot even think about giving raises or cost of living increases,” said one reader. “The staff has passion for our mission, and most are grateful to have a job.” The sentiment was repeated widely among poll respondents this month, most of which are not giving increases of any kind. However, of those who said they would be giving pay increases, nearly all said raises would be merit-based.

January 2010 If you could foresee the biggest news headline for 2010, what would it say?
Many of you were on the same line of thinking this month. Quite a few respondents said the headline would read: “Democrats lose control of House and Senate.” Some of those same respondents and quite a few others said the top of the fold would read: “Third terrorist attack on U.S. soil.”

December 2009 How do you evaluate a nonprofit before making a sizeable donation?
Says one reader: “I want the mission to be consistent with my values. … I need to see roughly 80 percent of my funds going directly to the beneficiary. Keeping admin to a minimum is important.” Adds another: “I evaluate a nonprofit by the quality and expertise of its board of directors. There is no more reliable method than to evaluate those who accept the public's trust to oversee a nonprofit organization.”

November 2009 Both the tech and real estate bubbles have burst. Which sector do you see as the next bubble and why?
Some readers suspect the real estate bubble hasn’t fully deflated and related echo bubbles, such as banking, could be in the line of fire. Another reader ventured to guess the green-tech bubble would be next. “It may already be happening,” he says. “There is such an expectancy based on so much opportunity. In this situation, more will rush into the market than can compete successfully. There is also the unfortunate variable of legislation that creates incentives and then goes away prematurely.”

October 2009 Are state and local government furloughs accomplishing budget goals or having an adverse affect on the local economy?
Comstock’s readers largely expressed a distaste for the furloughs on principal, saying they are “hurting the local economy” and “morale” and are yet another example of how lawmakers “create legislation to regulate our lives but show no leadership or discipline in their roles.” But while many readers don’t favor the furloughs, most also said the days off are meeting the state’s budget goals by “reducing costs” and “helping agencies avoid massive layoffs by spreading the pain among the entire work force.” One reader summed up the general sentiment: “In the final analysis, the benefits may not be worth the effort, grief and impact on people.”

September 2009 Some economists are declaring the recession officially over. How, if any, are you changing your investment strategy?
Although Federal Reserve Chairman Ben Bernanke says the recession is over, Comstock’s readers are none too convinced the local economy is improving anytime soon. Says one reader: "I see the stock market rallying and the housing market starting to come back slightly, and certainly that's encouraging. However, we don't have any indicators from history to help forecast what happens to an economy when trillions of dollars of debt burdens future generations.” In light of this common sentiment, other readers responded with: “I’m continuing to hold my expenses down and look to add to real estate holdings while the market is at historic lows in the Central Valley.” and “Taking advantage of this liquidity squeeze — whether it is residential real estate, commercial real estate, private equity positions or other illiquid vehicles — is where the greatest leverage can be found right now.”