BusterStronghart@Gmail.com

From Richard Russell's "Dow Theory Letters"


February 16, 2006 -- I should be in shock, but I'm really not. I just read on Bloomberg that my old high school, Horace Mann School for Boys (now just called Horace Mann because it's coed), will charge tuition of around $30,000 a year (this is a high school, mind you, not a university). And it's a good high school -- Eliot Spitzer is a graduate, so it must be good. But $30,000? I told my sister about it, and she laughed. "Get with it," she said, "Kindergarten at Ethical Culture school (where we both attended) now charges in the high $20 thousands, that is if you can get in at all." Actually, I hear there's near hysteria to get kids into private kindergartens in New York City. Remember when they called New York "Fun City"? I think that was back in the 70s or was it the '80s? It's still Fun City if you've got around half a million to spend every year.

So why am I surprised at the $30,000 at my old high school? Well, you see, we old codgers remember. Back in the late 1930s when I was attending Horace Mann, the tuition was a lot different. In those days Horace Mann was begging people to attend. Tuition then was $450 a year and thanks for thinking of us. Don't smirk. In the late '30s you could buy a new Ford for that same $450, so my folks didn't think Horace Mann was a bargain; they thought it was just a good school. I liked the school, of course, We had a really good football team. Our star running back was Jack Kerouac, who later became famous as the leader of the "beats." I knew Jack well. He was a tough guy, he came from New Jersey, and he thought all us Manhattan kids were spoiled brats.

Jack's "beat" buddies later became the hippies of the 1960s. With the arrival of the hippies, America's forgotten children burst on to the scene, and in time the hippies gave birth to the "bobby-soxers" and then to today's "teens." The Bobby-soxers loved Elvis, and later Frankie. The teens turned to a higher form of music, and Rock and Roll was born. Born? Hey, the teens almost took over the nation. The teens graduated to black penitentiary "music," and the whole thing morphed into what today we call the hip-hop generation. And it all started with Jack Kerouac back at Horace Mann School for Boys.

So tuition from $450 to $30,000. That's a big jump. But I thought the Federal Reserve was the guardian of our money? No, they don't really guard our money -- they create it. And doesn't Fed Chairman Bernanke say that he's going to target inflation at just 1 to 2 percent? That kind of inflation (if he can pull it off) is not too noticeable, unless you live a long time like your editor. Then you can look back and say, "What the hell happened to that money that I saved over 30 or 40 or 50 years?" Aw, the Fed ate it. You should have been smart enough to put some of it in gold or Sears or General Electric, no, I said General Electric, dummy, not General Motors.
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I went to Horace Mann in the middle '50s. Tuition was $900 and the Dormitory was another $900.